The Quick Read: A super jumbo DSCR loan is reviewed primarily on the property’s rental income covering its monthly obligation, subject to lender guidelines. The stock is never tested as income. It matters in three places: the down payment, the reserves, and the cost of turning shares into cash. The bridge is the plan for raising that cash so it is liquid, documented, and not pledged twice.
- DSCR divides the property’s rent by its full monthly obligation. Your stock does not enter that ratio.
- The stock shows up as down payment and reserves, which are typically six months of PITIA on the subject property, twelve for first-time investors, subject to underwriting.
- Selling, borrowing against the shares, or a mix of both each leave a different paper trail.
- Pledged shares cannot also count as reserves.
- The tax bill from selling low-basis stock is often a bigger decision than the loan terms. A qualified tax professional should weigh in before shares move.
A tech investor’s wealth often sits in one appreciated position, and a rental purchase above $2,000,000 needs a lot of verified cash. This piece walks the mechanics from sizing the need to the closing file. Lendmire is a broker that arranges these loans through select lenders in its wholesale network. Lenders set final terms and approve files.
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Rate source: Freddie Mac 30-yr average via FRED® — Federal Reserve Bank of St. Louis · effective Oct 15, 2026
Prefilled with starting assumptions — enter your own rent or nightly figures, taxes, insurance, and HOA for a more accurate picture.
Program parameters update from Lendmire’s centralized guideline source. Taxes and insurance are editable estimates.
As of Oct 15, 2026 · General Freddie Mac market benchmark, not a Lendmire loan offer. Rent, nightly rate, occupancy, taxes, and insurance are editable estimates. Short-term rental figures are estimates only and vary significantly by season, property type, management approach, and local short-term-rental rules — confirm local regulations before relying on them. Qualifying income for short-term rentals varies by program — some use appraisal market rent, others use documented STR history or projections — and is confirmed in underwriting. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
Key Terms Defined
DSCR: The property’s monthly rent divided by its full monthly obligation: principal, interest, taxes, insurance, and association dues.
Super jumbo: A loan balance above the standard program ceiling. In Lendmire’s network the standard DSCR program stops at $3,000,000, and a separate ladder carries qualified investors to $10,000,000.
Concentrated position: A large share of net worth held in one stock, often from years of equity compensation.
Securities-backed line of credit (SBLOC): A credit line secured by a brokerage portfolio, with the lender advancing a percentage of pledged value.
Reserves: Liquid funds left after closing, counted in months of the subject property’s payment.
Seasoning: The time funds have sat in an account so the source is clear and the balance is stable.
Asset depletion: A personal-balance-sheet qualifying method that converts assets into income. It is a different product from DSCR.
What Does a Stock-Funded Super Jumbo DSCR Look Like?
It looks like a rent-tested loan with a large equity check behind it. The lender reads the property’s rent against its payment, then verifies that the borrower holds the down payment and reserves in clean, liquid form. Wealth in stock is a source of cash, not a source of qualifying income.
That distinction clears up the most common confusion. Asset depletion is typically paired with owner-occupied financing, and it drives income. On a DSCR file, the portfolio is evidence of down payment and reserves. Business-purpose DSCR loans are designed for non-owner-occupied investment property and are reviewed differently from a standard owner-occupied mortgage. The complete DSCR loans guide covers the base mechanics.
Size changes the picture. Across the wholesale network, leverage steps down as the balance rises, through select programs and subject to underwriting:
| Loan size | Purchase LTV | Cash-out LTV | Credit for this leverage |
|---|---|---|---|
| $150K–$1M | 80% | 75% | 660+ |
| $1M–$1.5M | 75% | 70% | 700+ |
| $1.5M–$3M | 75% | 60% | 720+ |
| $3M–$4M | 65% | — | 700+ |
| $4M–$10M | 60% on review | — | 700+ on review |
Above $4,000,000 every request is reviewed case by case before submission, purchase or rate-and-term only. A lower score takes a lower leverage cell inside the same band. Above $3,000,000 the super-jumbo overlay also requires a 700 score, 0x30x24 housing history, 48-month event seasoning, and excludes rural property. It is limited to citizens and permanent residents. Exact terms depend on lender and investor guidelines, credit profile, reserves, and property review.
Lower leverage means a bigger equity check. That is why the stock question gets serious at this size.
Step One: How Big Is the Cash Need?
Add three numbers: the down payment, closing costs, and post-close reserves. Reserves are typically six months of PITIA on the subject property, or ITIA on an interest-only structure. First-time investors typically carry twelve months. Most programs do not add reserves for other financed properties, and the network allows up to 20 financed properties.
Above $2,000,000 the file calls for two appraisals. Luxury homes also tend to rent thin against their price, so coverage is the second thing to test early. Coverage of 1.00 earns full leverage. Coverage from 0.75 to 0.99 is a real path through select programs to $2,000,000, but LTV and terms adjust, subject to underwriting. Run the ratio before you decide how much stock to move.
How Do You Raise the Cash From Stock?
There are four routes. Each has different tax, risk, and file consequences, and the choice is usually where the real money is decided.
| Route | What it funds | Main risk | Take to your advisor |
|---|---|---|---|
| Sell shares | Down payment and reserves | Taxable gain | Cost basis, holding period |
| SBLOC or margin | Down payment bridge | Value cuts, calls | Lender terms, cushion |
| Exchange fund | Diversification only | Lockup | Not near-term cash |
| Mix of sale and borrowing | Both | Complexity | Sequencing |
Selling shares
Selling gives immediate diversification and clean cash. The cost is tax. Under IRS Topic 409, a holding period of more than one year is long-term and one year or less is short-term. Fidelity’s capital gains page lists long-term federal rates of 0%, 15%, or 20% depending on income and filing status, and notes that a 3.8% net investment income tax may also apply to high earners. Selling across tax years or in tranches can change that bill. It also changes how clean the statement history looks at application. Tax treatment varies; consult a qualified professional.
Borrowing against the shares
Many investors borrow instead of selling, since Schwab notes that selling investments to raise cash could trigger capital gains taxes, which is the usual reason investors borrow against them. Schwab gives an example advance of about 70% of the value of stocks, mutual funds, and ETFs. That is one example, not a rule. Each lender sets its own loan values, and they can change them.
The catch for a concentrated holder is that one stock falling hard can trigger a margin call. A call cured by liquidation can create a taxable event after all. The line also typically carries a floating cost. Whether a given DSCR program accepts borrowed funds as down payment is a program-level question. Raise it with the broker before pledging anything.
Exchange funds and slower tools
An exchange fund can diversify while deferring the gain. It does not free cash. Lockups and limited liquidity make fund interests a poor fit for near-term closing funds. Direct indexing and prepaid variable forwards are multi-year tools. They matter for the long unwind, not for this closing.
What Does the Documentation Trail Look Like?
Most programs want reserves in liquid form with a clean statement history. A brokerage statement is the natural evidence. Large deposits need a source trail: the sale confirmation, the transfer record, and a short letter if a deposit stands out.
Three habits keep the file clean:
1. Decide early where reserves will sit, and leave them there.
2. Keep the sale confirmation and the transfer record together for each tranche moved.
3. Keep pledged and reserve accounts separate on paper.
Programs differ on how they count securities. Across the wholesale network, some lenders discount brokerage balances for market swings, and some net out margin debit before counting anything. Cash-out proceeds never satisfy reserves on the super-jumbo overlay above $3,000,000. Elsewhere it is a lender-by-lender call. Plan reserves from the investor’s own cash and securities, not from loan proceeds.
DSCR vs. conventional financing
There are two common ways to finance an investment property, and they qualify you differently — here’s how investors weigh them.
Why investors choose it
- Qualifies on the property’s rental income — no personal tax returns, W-2s, or pay stubs needed to document income.
- No personal debt-to-income ceiling to clear, so existing mortgages and obligations don’t cap your borrowing the same way.
- Can be closed in an LLC, keeping the property inside a business entity.
- Built for scaling — not held to the limit on number of financed properties that conventional financing applies.
- Underwriting centers on the deal: generally qualifies when the rent covers the payment, a 1.00x coverage ratio being a common baseline (confirmed in underwriting).
- Designed specifically for investment property, including long-term and, where the program allows, short-term rentals.
Where it’s strong
- Often the lowest ongoing financing cost for a buyer who fully qualifies on personal income — a fit for a first property or a cost-first purchase.
Trade-offs for investors
- Requires full personal income documentation and must fit within a debt-to-income limit — salary, existing debts, and other mortgages all count.
- Typically held in your personal name rather than a business entity.
- Caps how many financed properties you can carry, which can become a ceiling as a portfolio grows.
- Evaluates you as a borrower as much as the property, which usually means more paperwork.
How investors usually choose: a first or single property often optimizes for the lowest financing cost; portfolio builders often optimize for leverage, vesting in an LLC, and scaling past conventional caps. The right answer depends on your goals, the property, and current guidelines — both paths run through select lenders in Lendmire’s wholesale network, with eligibility and terms confirmed in underwriting.
Walking the Persona Through It
Consider a senior engineer holding a large block of one company’s shares, targeting a rental purchase in the $2M–$3M band. On a purchase, that band allows 75% LTV through select programs, subject to underwriting, with a 720+ score for that leverage. The remaining 25% plus costs and six months of PITIA reserves is the cash need. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Say the property rents against a full obligation at around 1.1x. That clears the 1.00 benchmark for full leverage. If coverage came in at 0.9x, the file could still run through a select program to $2,000,000 at reduced leverage, but the balance here is above that, so the borrower would likely need a lower price or more equity.
The engineer sells enough long-term-held shares to cover the down payment, using a tax professional to pick lots. The rest stays invested, unpledged, and counts toward reserves under each program’s own treatment. Two appraisals are ordered because the balance exceeds $2,000,000. The entity vesting works with no layered entities, subject to program terms.
Where the General Rule Breaks
- Margin debit in the account. A lender nets margin balances down to equity before counting reserves.
- Unvested stock and options. RSUs and options are common in tech. Unvested positions are generally not counted for reserves, and restricted positions and retirement accounts are gray areas.
- Pledged shares as reserves. The same dollars cannot be collateral and reserves.
- Drawdown during the file. A sharp drop in a concentrated position can force a sale. That reduces reserves and creates a tax event. Size a cushion before applying.
- Owner-occupied plans. DSCR does not apply. This is business-purpose financing only.
- Short-term rentals. They qualify on documented operating history at 80% of gross, to $2,000,000, with municipal permission documented for each property. Rules are set locally and change.
When Another Lane Fits Better
| Situation | Better fit |
|---|---|
| Wants stock treated as income | Asset-based qualifying |
| Personal income is strong and steady | Standard jumbo |
| Rent thin against price | Lower leverage or bank statements |
| Wants to hold stock untouched | Sell later, or a smaller loan |
For the choice between lanes, see this comparison of a super jumbo non-QM versus a regional bank ARM.
Frequently Asked Questions
Does my stock count as income on a DSCR loan?
No. The property’s rent is the income tested. Your stock supports the down payment and reserves. Asset depletion, which converts assets to income, is a separate method.
Can I use SBLOC proceeds as my down payment?
It depends on the program. Rules on borrowed funds vary by lender, and there is no single published standard. Ask your broker before drawing the line, so the file does not surface a surprise.
Do unvested RSUs count toward reserves?
Generally not. Vested, liquid positions with a clean statement history are the usual standard. Restricted positions are gray areas and are reviewed by program.
Do I have to sell the stock?
Not always. Selling gives clean cash but can create a taxable gain. Borrowing defers the sale but adds margin-call risk, especially when one stock dominates the portfolio. A tax professional should compare the two.
Does the 1.00 coverage ratio decide approval?
A 1.00 ratio earns full leverage, but it is not a guarantee. Coverage from 0.75 to 0.99 is a path through select programs to $2,000,000, with LTV and terms adjusted, subject to underwriting.
If you are buying or refinancing a high-balance rental property and want to see how the numbers work, Lendmire can help you compare super jumbo DSCR loan options based on the property income, the loan balance, credit profile, leverage, and investor goals. Reach the team at 828-256-2183 or through the quote page.
For current guidelines and terms, see Lendmire’s super jumbo DSCR loan programs page.
Lendmire’s self-employed mortgages page presents both super jumbo programs, bank statement and DSCR, side by side.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage built around DSCR investor lending, with programs available in 41 markets, including Washington, D.C. DSCR lenders commonly evaluate rental-income coverage instead of personal income paperwork — a practical fit for LLC-owned and multi-property investors. Terms vary by lender, property, leverage, and program. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. IRS Topic 409, Capital Gains and Losses
2. Fidelity, Capital Gains Tax Rates
3. Schwab, What Is Securities-Based Lending
This article is part of Lendmire’s super jumbo DSCR loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: 40-Year vs. 30-Year Super Jumbo DSCR for a Business Owner · How a 40-Year IO ARM Raises the Super Jumbo DSCR Ceiling · Super Jumbo DSCR vs Full-Doc Jumbo for an Investor With W-2 Income
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.