The Quick Read: It depends on loan size and occupancy, but on a primary residence purchase the down payment typically starts at the low end of the range for smaller loans and rises to the high end for the largest loans, through select wholesale programs, subject to full underwriting. The grid tightens as the price climbs. Your deposits, not your traditional personal-income documentation, carry the income side of the file.
- A second home or an investment property typically carries lower leverage than a primary residence at the same size, so the down payment is larger.
- Every loan above $4,000,000 is reviewed case by case before submission, so treat any figure at that size as a starting point.
- Down payment is only one bucket. Reserves of 3, 6 or 9 months by loan size sit on top of it, along with closing costs.
- Credit score matters more as the balance grows. Credit floors rise at larger sizes.
What Counts as an Estate Home?
No loan program uses the term “estate home.” Lenders see a high-value jumbo purchase, and the loan amount decides which rules apply. A gated property on several acres and a large urban residence are both underwritten by size, occupancy and property type.
A bank statement loan is built for borrowers whose traditional personal-income documentation understates what they earn. Founders, physicians, attorneys, entertainers and athletes often fit this profile. The lender reads 12 or 24 months of deposits instead of leaning on a tax return. That changes how income is proven. It does not change how much equity you bring, because that comes from the leverage grid.
The down payment is simply 100% minus the maximum loan-to-value (LTV) the file qualifies for. A buyer who qualifies for 80% LTV puts down 20%. The rest of this piece explains how that LTV gets set at estate prices. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Key Terms Defined
- Bank statement loan: a mortgage that is reviewed around 12 or 24 months of personal or business bank deposits instead of traditional personal-income documentation.
- LTV (loan-to-value): the loan amount divided by the lower of the purchase price or appraised value. Down payment is what remains.
- Super jumbo: a loan large enough to sit above standard jumbo limits. Programs add stricter overlays at this size.
- Reserves: liquid cash you hold after closing, counted in months of the full housing payment.
- Expense ratio: the share of business deposits the lender subtracts before counting the rest as income.
- Seasoning: the waiting period a lender wants after a credit event, such as a foreclosure or bankruptcy, before it will lend.
How the Down Payment Is Set
Leverage steps down in bands as loan size rises, and it steps down again for second homes and investment property. Across the wholesale network, no single number applies to every file. The table shows typical maximum LTV on a purchase through select wholesale programs, subject to full underwriting.
| Loan size | Primary residence | Second home | Investment property |
|---|---|---|---|
| Up to $1M | 90% | 85% | 85% |
| $1M–$2M | 85% | 80% | 80% |
| $2M–$2.5M | 80% | 80% | 80% |
| $2.5M–$3M | 80% | 75% | 75% |
| $3M–$4M | 75% | 65% | 60% |
Subtract each figure from 100% to see the down payment. A primary residence at 85% LTV means 15% down. A second home at 65% LTV means 35% down. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Credit tiers move with the bands. A purchase in the lower bands may need a score in the high 600s or 700s. By $3,000,000 on a primary residence, most programs want 720 or better, and the $3,500,000 to $4,000,000 band wants 760 or better. A strong score keeps you at the top of a band. A weaker one drops you a notch or out of the band.
Two programs sit behind these numbers. A portfolio non-QM bank statement program carries files to $6,000,000. A bank portfolio jumbo program takes twelve-month statement files to $30,000,000 on its own ladder. Its ladder begins above $4,000,000 and overlaps the first program until $6,000,000. Above that, it stands alone.
The ladder is a ceiling. Reserves, property type and the strength of the deposits can all pull the number lower on a given file.
Above $4 Million: Case by Case
Every loan above $4,000,000 is reviewed case by case before submission, so no figure at that size is a flat promise. Through select wholesale programs, a typical primary residence purchase sits at 65% LTV through $5,000,000, 60% through $10,000,000 and 55% through $30,000,000, each on review. That means a down payment of roughly 35% to 45% at those sizes. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Second homes and investment properties typically run lower again. A second home purchase at $5,000,000 or below can sit at 65% on review with a 760 credit score, then 55% to $10,000,000 and 50% above that. Investment property follows a similar pattern.
Pricing and available terms vary by lender, borrower profile, property type, and full underwriting review.
- A 700 credit floor.
- A clean housing history over the prior 24 months.
- 48 months of seasoning after any credit event.
- U.S. citizens and permanent residents only, with no non-occupant co-borrowers.
- Cash-out proceeds cannot be counted toward reserves.
Worked Comparison: One Estate, Three Uses
Run the numbers on an estate-grade property priced between $3,000,000 and $3,500,000, purchased with 24 months of business deposits. Through select wholesale programs, subject to full underwriting, three uses give three very different equity requirements.
As a primary residence purchase, the ceiling is typically 75% LTV, so the down payment is about 25%. As a second home purchase, the ceiling is typically 65%, so the down payment is about 35%. As an investment property purchase, the ceiling is typically 60%, so the down payment is about 40%.
Reserves sit on top of those percentages. Loans above $1,500,000 typically need 9 months of reserves, and each additional financed property adds 2 months, up to a 12-month maximum. First-time investors typically need 12 months. Closing costs are separate again. Total cash to close is therefore well above the down payment alone.
Occupancy is the first decision because it moves the equity by ten to fifteen points on the same house.
Why Lenders Ask for More Equity as Loans Get Bigger
Documentation, credit and leverage work together. When income is read from deposits, lenders protect themselves by asking for stronger credit and more equity. Performance data supports the instinct. Scotsman Guide reported in an earlier snapshot that delinquencies concentrate in the low-documentation, low-credit-score, high-LTV corner of non-QM lending. Impairment ran near 22% for scores below 660 and under 5% at 741 and above.
That is why the grid does not hand 90% leverage to a large loan. The program network does not allow 90% on any loan above $1,000,000. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Does a Bigger Down Payment Help You Qualify?
Yes, in two ways. First, it lowers the loan and so the housing payment, which matters because the bank statement path tests personal debt-to-income (DTI) up to 50%. Every mortgage you already carry counts. Second, it can move the file into a better LTV band.
Qualifying income itself works like this. The lender totals eligible deposits across 12 or 24 consecutive statement months and removes transfers between your own accounts, loan proceeds and refunds. It then applies an expense ratio:
- Typically a lower expense ratio for a service business with no employees.
- A middle ratio for a business with a small number of employees.
- A higher ratio for a larger staff or any product business.
- An accountant-provided ratio, or a profit-and-loss method with a cap, on some programs.
Business statements need at least 25% ownership. Transfers from your own business into your personal account count in full. The remaining income is divided by the statement months.
Two other paths exist for borrowers whose deposits are uneven. An asset allowance divides liquid assets by 36, 60 or 84 months and adds the result to income. It applies to primary and second homes, at up to 80% leverage. An assets-only path needs U.S. liquid assets equal to the loan plus closing costs and sixty months of any net loss on other residential property, with no DTI test. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Where the Down Payment Can Come From
Lenders verify the source of every large sum. Savings, brokerage proceeds, home sale proceeds and similar seasoned funds are the usual starting points, each with a paper trail. For a step-by-step view of documentation and seasoning, see Lendmire’s piece How to Source a Down Payment on a Second-Home Bank Statement Loan.
Business funds are a common question for self-employed buyers. Under the asset-qualifying paths above, business funds, gifts, cryptocurrency and unvested stock never count toward assets. Whether business money can fund the down payment itself depends on the program and the documentation, which Lendmire covers in its piece Can Business Funds Cover a Second-Home Bank Statement Down Payment?.
Where Estates Differ From Other Houses
Land and property type affect leverage as much as price does. Three property traps recur on large files:
- Acreage. Programs cap acreage at ten acres, and rural property is typically excluded above the super-jumbo line.
- Rural location. Rural property can reach 80% LTV on ten acres or less, never above $3,000,000.
- Appraisal gaps. The appraisal sets the value used for LTV. If it comes in below the price, the lender uses the lower number, and the cash you need goes up.
Unique homes have thin comparable sales, so appraisal gaps are a real risk. Build a cushion into your cash plan before you sign a purchase contract.
An estate that arrives by inheritance is a separate question. The down payment does not apply, but a refinance or cash-out on that property follows a different ladder. Programs treat the timing of ownership differently, so ask before assuming.
Bank Statement Loan or DSCR for a Rental Estate?
Occupancy decides the product. If you will live in the home, the bank statement path applies. If you will rent it out, a DSCR (debt service coverage ratio) loan may fit better. DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage.
A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines, so your personal DTI usually does not limit it. That is why investors adding several properties tend to move to DSCR. A big house with thin rent often still needs the bank statement path, since the rent may not cover the payment at that price. Our complete DSCR loans guide walks through how that coverage is tested.
Common Myths on Down Payment
“Bank statement loans verify nothing.” They verify a lot. The CFPB’s ability-to-repay guide says a lender generally must verify the income or assets it relies on with reasonably reliable third-party records. It also says funds flowing into an account must be the consumer’s own income if the lender relies on them. A self-prepared profit-and-loss statement is not third-party verification. CFS Review summarizes the same point for non-QM lenders, who must still weigh eight underwriting factors.
“10% down is the standard.” It is the best case, available only in the lowest band and for the strongest borrowers. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
“The lender just adds up deposits.” Transfers, loan proceeds and refunds come out first, then an expense ratio applies.
“Bank statement means bad credit.” The label describes how income is documented, not borrower quality. The credit floors here are 660 on the portfolio program and 680 on the bank program, rising to 700 above the super-jumbo line.
Ways to Reduce the Cash You Need
- Buy it as your primary residence. That is the highest leverage on the grid.
- Stay inside a lower band if the price allows. A modest price cut can drop you into a band with 5 points more leverage.
- Raise your credit score before you apply. Higher tiers keep you at the top of a band.
- Keep reserves in seasoned, documented accounts, not in funds the program will not count.
- Compare programs. Floors, overlays and ladders differ, which is where a broker earns its keep.
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.
This article is general information, not legal or tax advice. Talk with a qualified professional, such as an attorney or CPA, about your own situation.
Frequently Asked Questions
Can I put down less than 10% on a bank statement loan for an estate?
No. Even in the lowest band, leverage tops out at 90% on a primary residence purchase up to $1,000,000, through select wholesale programs. No loan above $1,000,000 reaches 90%, so an estate-priced home needs more equity than that.
Is mortgage insurance required to lower my down payment?
Not as a standard feature. Non-QM programs set their own leverage grids, so mortgage insurance depends on the program terms. The ladder here reflects each program’s maximum LTV with no assumption either way.
Does a second estate need a larger down payment?
Yes. A second home typically runs lower leverage than a primary residence, and investment property runs lower still. At $3,000,000 to $4,000,000, a purchase might sit at 75% LTV as a primary residence, 65% as a second home and 60% as an investment property. Second homes are limited to one unit.
Can a gift or retirement account cover the down payment?
It depends on the program and documentation. For the asset-based qualifying paths, gifts never count and retirement accounts count at 70% (80% at 59.5 or older). Lenders also trace large deposits, so keep the paper trail.
Will a larger down payment get me approved?
It helps, but it does not guarantee anything. Approval depends on credit, deposits or assets, reserves, the property and full underwriting. A larger down payment lowers the loan and can improve the DTI ratio, which strengthens the file.
Next Step
If you are financing a high-balance property on business or personal bank statements and want to see how the numbers work, Lendmire can help you compare super jumbo bank statement loan options based on your deposits, the property, credit profile, leverage, and your goals. Lendmire is a mortgage broker, not a lender. Its consumer mortgage licensing covers 16 states: AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA and WA. Programs change, and every file is underwritten individually. Nothing here is a commitment to lend.
Lendmire’s self-employed mortgages page presents both super jumbo programs, bank statement and DSCR, side by side.
About Lendmire
Lendmire (NMLS# 2371349), a non-QM mortgage broker serving investors in 41 markets including Washington, D.C., helps structure DSCR scenarios commonly evaluated around a property’s rental income rather than personal income paperwork, subject to lender guidelines. A Scotsman Guide Top Mortgage Workplace in 2025 and 2026, Lendmire places loans through wholesale investor lenders and is not a direct lender.
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References
1. Scotsman Guide, Warnings flash in the low-doc, low credit score, high-LTV corner of non-QM lending
2. CFPB Ability-to-Repay/QM Small Entity Compliance Guide (v3.1)
3. CFS Review, CFPB Addresses Non-QMs Under Ability-to-Repay Rule
This article is part of Lendmire’s super jumbo bank statement loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How to Use 40-Year Amortization on a Super Jumbo Bank Statement Loan · How to Qualify as a Real Estate Agent for a Super Jumbo Bank Statement Loan · Bank Statement Loan vs Asset Depletion Loan for Physicians
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.