The Quick Read: It depends on occupancy, loan size, credit and whether the building is warrantable, because a penthouse has no down payment rule of its own and is underwritten as a condo, so through select wholesale programs, subject to full underwriting, a primary residence purchase can need as little as 15% down on a warrantable building at the low end and 25% or more once the loan passes $3,000,000. Second homes and rentals run about five points lower in leverage at most sizes. That means more cash down. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
- Penthouses tend to sit in the larger loan bands, and leverage steps down as the loan grows.
- A condo purchase tops out at 85% for a warrantable building, and the loan-size ladder then steps down through 80% and 75% as size climbs.
- Everything above $4,000,000 is reviewed case by case before submission.
- A building that fails warrantability pushes the ceiling down further.
- Reserves and closing costs come on top of the down payment.
Key Terms Defined
Bank statement loan: A mortgage that qualifies the borrower on 12 or 24 months of deposits instead of traditional personal-income documentation.
Loan-to-value (LTV): The loan amount divided by the lower of price or appraised value. Down payment is the rest.
Warrantable condo: A building that meets standard project rules on litigation, owner concentration, commercial space and dues.
Condotel: A condo with hotel-style operations, such as a rental pool or front desk.
Expense ratio: The share of business deposits treated as costs before income is counted.
Reserves: Liquid assets left after closing, counted in months of the full housing payment.
Why a Penthouse Changes the Number
A penthouse changes the number through size and building type, not through a special program. Most top-floor units price into the jumbo and super jumbo bands. In those bands the leverage ceiling drops. The building can also trip warrantability rules, which cut the ceiling again.
Think of it as three layers. The first is the loan size band. The second is how the borrower will use the unit. The third is the building. A penthouse lands at the high end of the first layer, and often has a wrinkle in the third.
Some penthouse types add friction. A duplex or triplex unit built from combined floors can be hard to appraise, because comparable sales are thin. A new-construction penthouse may sit in a project that has not hit owner-occupancy targets. A resale unit in an older tower may carry litigation or heavy investor ownership. Each one shows up in the building review, not in the income review.
One more point on terms. Penthouses are sold as one unit. Across the wholesale network, second homes are limited to one unit, so the combined-floor unit has to be a single legal unit to fit that path.
Two Approvals, One Loan
Every penthouse file needs two approvals: the borrower and the building. A strong deposit history does not rescue a building that fails review. A clean building does not rescue a thin file.
On the borrower side, the lender reads 12 or 24 consecutive months of personal or business statements. Credit starts at a 660 floor on the portfolio non-QM program and 680 on the bank portfolio program. Both rise to 700 above the super jumbo line. Debt-to-income can run to 50%.
On the building side, the reviewer looks at:
- pending or past litigation against the association
- how much of the project one owner or investor holds
- commercial or hotel-style space in the tower
- delinquent dues among owners
- the owner-occupied share of units
Those items come from standard condo project review. Programs set their own limits, and published thresholds shift from lender to lender, so treat any single percentage you read online as unconfirmed until a lender reviews your building.
The leverage consequences are concrete. Across the wholesale network, the condo property ceilings are 85% for warrantable buildings and 80% for non-warrantable buildings. Condotels reach 75% on a purchase and 65% on a cash-out. The bank program trims condotel cash-out to 50%. These are ceilings for the strongest files, through select wholesale programs, subject to full underwriting. The condo ceiling and the loan-size ladder both apply, and the lower number controls.
Down Payment by Occupancy and Loan Size
The table below shows the loan-size ladder for maximum purchase leverage by occupancy. Minimum down payment is 100% minus the figure shown. Every figure is a ceiling through select wholesale programs, subject to full underwriting, and applies to a one-unit property before any building cap. For a condo, the 85% warrantable cap applies if it is lower, so the 90% cell is a house figure that a penthouse does not reach.
| Loan size | Primary purchase | Second home purchase | Investment purchase |
|---|---|---|---|
| $300K–$1M | 90% (85% on a condo) | 85% | 85% |
| $1M–$2M | 85% | 80% | 80% |
| $2M–$2.5M | 80% | 80% | 80% |
| $2.5M–$3M | 80% | 75% | 75% |
| $3M–$4M | 75% | 65% | 60% |
| $4M–$5M | 65% on review | 65% on review | 65% on review |
Read the table with these caveats:
- Credit floors rise with size. Primary residence bands run from 680 at the low end to 720 through $3,500,000, and 760 from $3,500,000 to $4,000,000. Second homes and rentals have their own floors by band.
- Above $3,500,000 on a primary residence, and above $3,000,000 on a second home or rental, super jumbo overlays apply. They include a 700 credit floor, a 0x30x24 housing history, 48 months of seasoning after any credit event, U.S. citizen or permanent resident status, and no non-occupant co-borrowers.
- Above $4,000,000, every file is reviewed case by case before submission. The figures in that row are not a promise. The bank program carries its own ladder there: 65% to $5,000,000, 60% to $10,000,000 and 55% to $30,000,000, again on review.
- Never read 90% as available on anything over $1,000,000, and never read it as available on a condo.
For market contrast, Scotsman Guide has reported that some non-QM lenders go as high as 90% LTV with no mortgage insurance. That is the low-balance, strong-credit corner of the market. In the network, the matching cell is 90% on a primary residence purchase up to $1,000,000, and a condo sits under its own 85% cap. A penthouse rarely sits there. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Is There a Federal Minimum?
No. The federal ability-to-repay framework sets documentation and repayment standards, not a down payment floor. Bank statement loans are non-QM, so each program publishes its own leverage grid. Non-QM lenders still have to confirm the borrower can repay. They just have more room in how they measure income.
That is why the same penthouse can need different cash depending on which program holds the file. Lendmire shops multiple wholesale programs for exactly that reason.
Worked Example at Penthouse Scale
Say a self-employed buyer targets a primary residence penthouse where the loan lands in the $2,500,000–$3,000,000 band. Purchase leverage tops out at 80%. Pricing and available terms vary by lender, borrower profile, property type, and full underwriting review. Credit needs to sit at 720 or better in that band. Reserves run 9 months of the full housing payment, because the loan is above $1,500,000.
Now change one input. The same loan size as a second home tops out at 75%. As a rental, the figure is also 75%. Same building, same borrower, five more points of cash.
Push the loan into the $3,000,000–$4,000,000 band and the primary residence ceiling drops to 75%. A second home falls to 65% and a rental to 60%. That means a 35% down payment on a second home and a 40% down payment on a rental penthouse, before reserves and closing costs. Those are the numbers an investor needs before signing a contract. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Last variable: the building. If the tower is non-warrantable, the ceiling falls to 80% at most. If it is a condotel, 75% on a purchase. The tighter number controls.
This is an illustration of how the grid works, not a quote. Terms vary by borrower, property and program.
What Cash Comes On Top of the Down Payment
The down payment is not your total cash need. Plan for four more buckets.
1. Closing costs. Lender, title, appraisal and escrow items. They vary by file, so get an itemized estimate before the contract goes hard.
2. Prepaids and escrows. Taxes, insurance and association dues are often collected up front.
3. Earnest money. It counts toward the down payment if the paper trail shows it cleared your account.
4. Reserves. These stay in the bank. They do not go to the closing table.
Reserves scale by loan size on the network programs: 3 months to $500,000, 6 months to $1,500,000, and 9 months above. Add 2 months per additional financed property, capped at 12 months. First-time investors need 12 months.
What counts matters. Retirement accounts count at 70% of balance, or 80% at age 59½ and older. On super jumbo files, cash-out proceeds cannot satisfy reserves. Penthouse buyers often keep wealth in a business or brokerage account, so confirm what each program counts before choosing the account that funds the closing.
Where the Down Payment Funds Come From
Funds must be sourced and seasoned. The lender wants to see where each large deposit came from. Plan for a clean paper trail on every transfer.
Common sources, and what each one needs:
- Personal savings. The statements already in the file usually cover it.
- Business cash. A transfer from your own business into a personal account counts at 100% for income purposes. As a down payment source, expect the lender to ask for business statements and your ownership share.
- Sale proceeds. A settlement statement from the prior sale.
- Brokerage liquidation. Statements showing the sale and the transfer.
- Gifts, borrowed funds and securities-backed lines. These are program-specific. Ask before you write the contract, not after.
On asset-based qualification paths, the rules are stricter. Business funds, gifts, most trusts, unvested stock and cryptocurrency never count toward the asset total. Don’t assume a funds source works across both documentation paths.
How Your Deposits Set the Price You Can Reach
Deposits and the expense ratio decide the loan size you can carry, and loan size decides your down payment tier. This is the link most buyers miss.
Qualifying income is eligible deposits divided by the statement months, after an expense ratio. The network uses fixed ratios for business statements, which vary by business type and staffing level. An accountant-prepared ratio or a profit-and-loss method, capped at 80%, can replace them.
Run it with the same deposits. At a 20% ratio, 80% of deposits count as income. At 50%, only half do. A service business with no staff may carry a materially larger loan than a product business with identical deposits.
Business statements require at least 25% ownership. Statements must be consecutive. Transaction histories do not substitute. Personal-account statements are treated differently, since there is no business expense to strip.
Asset paths exist as well. An asset allowance divides liquid assets by 36, 60 or 84 months, and the 84-month version is the standalone path, also used on any loan above $3,500,000. Assets-only needs U.S. liquid assets equal to the loan plus closing costs.
What If the Appraisal Comes In Low?
You pay the gap in cash. On a purchase, leverage is generally measured against the lower of price or appraised value. A penthouse appraisal is harder than a standard unit, because comparable sales are scarce and top-floor premiums are subjective.
An appraiser uses the condo unit form, known as the 1073. A rental penthouse may also need a rent schedule, the 1007. Neither is a down payment rule. Both shape the value that your percentage applies to.
If the value comes in short, you have three moves: bring more cash, renegotiate the price, or ask for appraisal reconsideration with recent in-building sales and unit-specific adjustments. Reconsideration packets help most when the building has recent sales. Leave cash room for the gap.
Rental Penthouse: Bank Statements or DSCR?
For a penthouse you plan to rent, you have two documentation paths. A bank statement loan is reviewed on your deposits. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Lendmire’s complete DSCR loans guide covers the second path in full.
The better choice depends on which path gives the stronger leverage tier and cash flow for that unit. Luxury towers carry heavy association dues, and those dues count in the monthly obligation on a DSCR file. High dues can pull coverage down. Programs below 1.00 coverage are available through select lenders in the network, but leverage and terms adjust, and more cash goes down. If dues sink the rental math, the bank statement path may carry the file instead.
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.
Penthouse Buyer Pre-Contract Checklist
Run this list before the contract goes hard.
1. Pull the building’s status. Ask for the project questionnaire, litigation disclosure, owner concentration and any hotel or commercial components.
2. Pick the occupancy. Primary, second home and rental each carry a different leverage row.
3. Place the loan in a band. Check credit against that band’s floor.
4. Gather statements. Twelve or 24 consecutive months, business and personal.
5. Source the cash. Trace every large deposit, and decide which account funds closing.
6. Prove reserves. Count only what the program counts.
7. Hold appraisal room. Keep cash set aside for a gap.
8. Above $4,000,000, ask early. Case-by-case review should happen before the file is submitted.
Frequently Asked Questions
Is 10% down possible on a penthouse with a bank statement loan?
Rarely. Ten percent down matches the 90% ladder figure for a primary residence purchase through $1,000,000, but a condo is capped at 85% for a warrantable building, so the condo cap applies first. Most penthouses also price above that band, where the ceiling drops to 85%, 80% or 75%. All of this is through select wholesale programs, subject to full underwriting, and final terms follow the full file review. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
How much more down does a rental or second-home penthouse need?
Generally more, and the gap varies by loan size. For example, from $1,000,000 to $2,000,000, a primary purchase reaches 85% while a second home or rental reaches 80%. In the $3,000,000 to $4,000,000 band, a primary residence reaches 75%, a second home 65% and a rental 60%.
Does a non-warrantable building change the down payment?
Yes. Non-warrantable condos reach 80% at most, and condotels reach 75% on a purchase. The building ceiling and the loan-size ceiling both apply, and the lower one controls.
Can business cash cover the down payment?
Often, with documentation. Business transfers into your personal account count at 100% as income. As funds to close, expect a request for business statements and your ownership share. On asset-based paths, business funds never count toward assets.
What happens above $4,000,000?
Every file is reviewed case by case before submission. The bank portfolio program has its own ladder there, 65% to $5,000,000, 60% to $10,000,000 and 55% to $30,000,000, again on review. Leverage is lower, and reserves and credit requirements stay strict.
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’s consumer mortgage licensing covers AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA and WA. Programs change, and 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 — is a mortgage brokerage specializing in DSCR investor loans, helping arrange financing across 41 markets, including Washington, D.C., through wholesale and investor-lending channels. The model centers on property-level rental income reviewed by the lender rather than W-2 documentation, subject to lender guidelines, suiting entity-owned and multi-property investors. Lendmire holds Scotsman Guide Top Mortgage Workplace recognition for 2025 and 2026.
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References
1. Scotsman Guide, Rev Up the Engine for Non-QM Lending
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 Much Can Tech Founders Borrow With a Bank Statement Loan? · How to Qualify for a Bank Statement Loan for Entrepreneurs · How Much Down Payment Does a Bank Statement Mortgage for High Earners Need?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.