The Quick Read: The down payment is 100% minus the maximum loan-to-value the loan size allows, and a warrantable condo follows that size ladder like any other standard rental property. On a purchase, the minimum equity runs about 20% to $1,000,000, 25% from $1,000,000 to $3,000,000, 35% from $3,000,000 to $4,000,000, and 40% above that on review, all subject to underwriting.
- Purchase leverage tops out at 80% to $1,000,000, 75% to $3,000,000, 65% to $4,000,000, and 60% above that on review.
- The tier is set by the loan amount, not the purchase price.
- Warrantable status keeps the file off the non-warrantable cap of 75% and $1,500,000.
- Coverage of 1.00 or better earns full leverage; lower coverage reduces leverage.
- Cash to close is the down payment plus closing costs plus reserves.
Lenders sort a condo into a bucket, and the loan balance sets the leverage. Everything below walks through how that works on a real file.
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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
Super jumbo: An informal label for a loan far above the conforming limit. No federal definition exists; each lender’s size ladder draws the line.
Warrantable condo: A condo project that clears the agency project checklist, such as owner-occupancy share, commercial space, HOA reserves, and litigation. DSCR loans are not sold to the agencies, so the label mostly sorts the collateral.
LTV: Loan-to-value, the loan amount divided by the property value.
DSCR: Debt service coverage ratio, the monthly rent divided by the full monthly obligation (principal, interest, taxes, insurance, and association dues).
Reserves: Liquid funds, verified separately, held after closing. The required amount varies by lender and loan program, and is typically expressed as a number of months of the monthly obligation on the subject property.
Cash to close: The down payment plus closing costs plus required reserves.
What actually sets the down payment?
Three things set it: the loan size, the property type, and the credit and coverage profile. Loan size does most of the work on a warrantable condo.
DSCR loans are business-purpose investor loans, reviewed differently from a standard owner-occupied mortgage. Qualification runs primarily on property-level rental income covering the payment, subject to lender guidelines. That is why the equity requirement is the main lever. The lender has no personal-income cushion to lean on, so it sizes the cushion in the property.
The arithmetic is plain. Take the maximum LTV for your loan band, subtract it from 100%, and that is the minimum down payment as a percentage of price. A 75% ceiling means 25% down. Express it as a percentage and leave the dollar conversion to a calculator. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Across the wholesale network, most programs that go past $3,000,000 step leverage down at the same break points. A few lenders sit a little tighter, and the strictest overlays want more reserves or a second appraisal. The ladder below is the typical range, not a promise.
The loan-size ladder
On a purchase with coverage of 1.00 or better, leverage falls as the loan grows, and the required down payment rises with it. Every figure is a ceiling through select wholesale programs, subject to underwriting.
| Loan band | Max purchase LTV | Implied minimum down |
|---|---|---|
| $150K–$1M | 80% | 20% |
| $1M–$1.5M | 75% | 25% |
| $1.5M–$2M | 75% | 25% |
| $2M–$3M | 75% | 25% |
| $3M–$4M | 65% | 35% |
| $4M–$6M | 60%, on review | 40% |
| $6M–$10M | 60%, on review | 40% |
Read the table by loan amount. The 80% cell reaches only to $1,000,000; no loan above that gets 80%. Above $4,000,000, every request is reviewed case by case before submission, purchase or rate-and-term only, so treat the 60% as a ceiling that depends on the file.
Credit matters too. The top cell in each band needs a certain score. The $150,000 to $1,000,000 band’s top leverage needs 660 or better. From $1,000,000 to $1,500,000 it needs 700 or better. From $1,500,000 to $3,000,000 it needs 720 or better. Above $3,000,000 it needs 700 or better. Separately, the program floor is 660 on loans to $3,000,000 and 700 above $3,000,000, where the super-jumbo overlay adds clean housing history, seasoning after credit events, and citizen or permanent-resident status. A lower score takes a lower-leverage cell in the same band.
Price and loan are different numbers. Compute price times leverage first, then read the band for that loan. A condo priced at $3,800,000 at 75% produces a loan in the $2M to $3M band. At 65% it would sit in the $2M to $3M band as well, but the ladder only gives 65% once the loan itself is above $3,000,000. The lender reads the band for the actual loan amount, so size the loan, then check the cell.
Where does warrantable status fit?
Warrantable status matters mainly because it keeps you off the non-warrantable cap. A warrantable condo uses the full size ladder. A non-warrantable condo is capped at 75% and $1,500,000, so it cannot carry a true super jumbo balance.
| Collateral | Max LTV | Size cap |
|---|---|---|
| Warrantable condo | Follows the ladder | Up to $10M |
| Non-warrantable condo | 75% | $1,500,000 |
| Condotel | 75% purchase, 65% refinance | $1,500,000, with $250,000 cash-in-hand |
Vesting does not change this. A trust, an LLC, or individual title lands in the same cell, with entity vesting welcome (no layered entities), subject to lender program eligibility.
A common mistake is assuming warrantable means a lower down payment. In a DSCR file it does not. A warrantable unit and a single-family rental at the same loan size get the same leverage. The label protects you from a lower ceiling; it does not buy a better one.
Worked examples
Both examples use modeled assumptions, not market data. They show percentages and coverage only.
Mid-tier condo. Run the numbers on a $1,800,000 warrantable condo bought at 75% leverage. The loan comes to $1,350,000, which lands in the $1M to $1.5M band, so the 75% cell for that band applies. The top cell there needs a qualifying credit score, and a lower score drops the file to a lower cell. Down payment is 25% of price. Coverage of 1.00 or better earns that full leverage. With rent covering the full obligation at roughly 1.1x, the file sits in the full-leverage cell, subject to underwriting. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
High-tier condo. Say you buy a $4,500,000 warrantable condo. At 65% the loan would land just under $3,000,000, which sits in the $2M to $3M band, so the ladder’s cell for that band governs rather than the $3M to $4M cell. Work it from the loan side. Push leverage to 75% and the loan crosses $3,000,000 into the 65% band, so the 75% request fails and the lender returns the file to 65%. Credit of 700 or better is needed for that top cell, plus the super-jumbo overlay. Two appraisals apply above $2,000,000.
The tipping point matters. Once the loan itself passes $3,000,000, the required equity jumps from 25% to 35%. At 75% leverage that happens when the price passes $4,000,000, so a buyer pricing a purchase just above that line should check whether a slightly lower price keeps the loan in the 75% band. Model cash to close before negotiating. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Cash beyond the down payment
Cash to close is larger than the down payment. Add closing costs, any prepaid items and escrows, and the reserves. Reserves on the subject property are typically six months of the monthly obligation (interest only where the loan is interest-only), and twelve months for first-time investors. Cash-out proceeds never satisfy reserves. No extra reserves are required for other financed properties, and the program allows up to 20 financed properties.
Source of funds gets more scrutiny at large balances. Expect to document where the cash sits and how long it has been there. Equity borrowed against another property can fund the down payment, but its payment counts against that borrower’s obligations and should be planned with the coverage test in mind.
Two appraisals apply above $2,000,000. The lender uses the appraised value, so a gap between price and value changes the equity you need. The appraisal also carries a rent schedule on the Fannie Mae 1007 form and, for small income properties, the 1025 form.
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.
Can rent cover the payment at this size?
Coverage gets harder as price rises, because rents on luxury condos rarely scale with price. A larger down payment improves the number, since a smaller loan means a smaller monthly obligation against the same rent. Remember that association dues sit in the obligation. High-rise condo dues can be heavy and pull coverage down faster than a house would.
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. No-ratio structures reach $2,000,000 through a handful of lenders in the network, with a clean housing history and 0x30x24, and subject to underwriting. At the largest sizes, leverage, credit, and reserves usually bind before the ratio does.
Interest-only helps. The program offers a 120-month interest-only period on 30- and 40-year terms, up to 75% LTV, qualified on interest, taxes, and insurance, with coverage of 0.75 or better. On a warrantable condo near the $2M to $3M band, that can lift coverage without changing the down payment. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Short-term rentals carry their own limits. They need coverage of 1.00 or higher, loans to $2,000,000, and experienced investors, with income counted at 80% of gross. Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income.
What the lender checks on the condo project
Even on a DSCR loan, the project gets reviewed. Expect a condo or HOA questionnaire, the association budget, and a master insurance certificate. The questionnaire completeness is where files stall. Missing pages or stale budgets send the file back. Entity documents are needed if you vest in an LLC, per lender program requirements.
The things that flip a project from warrantable to non-warrantable are the ones agency checklists test: owner-occupancy share, one owner holding too many units, commercial space, thin HOA reserves, and pending litigation. If one unit tips the project to non-warrantable, the 75% and $1,500,000 cap can end the super jumbo plan.
Buying several units in one project raises the concentration question. Liquidity must cover reserves on each financed unit’s file, and the lender may look harder at your share of the project.
Where the “jumbo” line comes from
The federal conforming limit sets the jumbo boundary. FHFA set the baseline one-unit limit at $832,750 and the high-cost ceiling at $1,249,125. A loan over the county limit is jumbo. HousingWire reports the limit rose 3.25%. Super jumbo has no official definition. The lender’s ladder defines it, which is why the break points above matter more than the label.
Pre-approval checklist
- Confirm the condo project’s warrantable status in writing.
- Compute the loan from price times leverage, then read the band.
- Check coverage with association dues in the obligation.
- Gather the lease or a rent schedule, the HOA questionnaire, budget, and master insurance certificate.
- Verify credit against the band’s top-cell score and the 700 overlay above $3,000,000.
- Document reserves and source of funds.
- Plan for two appraisals above $2,000,000.
- Confirm vesting, with no layered entities.
Tax treatment can depend on how the funds are used and how the property is held; investors should keep clear records and speak with a qualified tax professional before relying on any deduction.
For related ground, see Lendmire’s piece on how much a super jumbo cash-out releases on a non-warrantable condo, and the complete DSCR loans guide for the program basics.
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. Lendmire arranges financing as a broker through select lenders across 41 markets, including Washington, D.C.
Frequently Asked Questions
Is zero down possible on a super jumbo DSCR condo purchase?
No. Maximum purchase leverage is 80% to $1,000,000 and falls from there, so some equity is always required. At super jumbo sizes the minimum runs 25% to 40%, subject to underwriting.
Does a warrantable condo need less down than a non-warrantable one?
Not directly. A warrantable condo follows the size ladder, while a non-warrantable condo is capped at 75% and $1,500,000. The benefit is access to higher balances, not a smaller percentage at the same loan size.
Who decides what counts as super jumbo?
The lender’s ladder does. The conforming limit sets where jumbo starts, but super jumbo has no federal definition. In this network the standard program stops at $3,000,000 and the ladder runs to $10,000,000.
How much cash do I need beyond the down payment?
Closing costs and reserves. Reserves are typically six months of the monthly obligation on the subject property, twelve for first-time investors. Cash-out proceeds cannot satisfy reserves.
Can a low coverage ratio still work?
Sometimes. Coverage from 0.75 to 0.99 is a path through select programs to $2,000,000, but LTV and terms adjust, subject to underwriting.
Lendmire’s self-employed mortgages page presents both super jumbo programs, bank statement and DSCR, side by side.
About Lendmire
As a DSCR and non-QM mortgage broker, Lendmire — NMLS# 2371349 — connects investors with wholesale lending channels across 41 markets, including Washington, D.C. The property’s rental income, not the borrower’s traditional personal-income documentation, is central to lender review, which works for self-employed operators and portfolios beyond four financed properties. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. FHFA – 2026 Conforming Loan Limit Values
2. HousingWire – FHFA 2026 limit
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: Can a Non-Warrantable Luxury Tower Buyer Get a Super Jumbo DSCR Loan? · How to Qualify for a Super Jumbo DSCR Loan in Michigan · Is a Super Jumbo DSCR Loan Available in Wyoming?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.