The Quick Read: Usually the down payment runs from about 10% on a primary-residence purchase up to $1,000,000 to 40% or more as balances climb, because the maximum loan-to-value for your loan size, occupancy and purpose sets it, not the 40-year term. Every file above $4,000,000 is reviewed case by case before submission. The term changes the payment, not the equity you bring.
- Primary-residence purchases reach 90% LTV only up to $1,000,000, through select wholesale programs, subject to underwriting.
- Second homes and investment properties run about five points lower at most sizes.
- Cash-out ceilings sit below purchase ceilings at every size.
- Reserves of 3, 6 or 9 months come on top of the down payment.
- Qualifying income comes from 12 or 24 months of deposits, not traditional personal-income documentation. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Key Terms Defined
Super jumbo: a loan large enough that lenders move it to a stricter size ladder. Each program draws its own line, and many start around $3,000,000 to $4,000,000.
Bank statement loan: a mortgage that qualifies the borrower on documented deposits instead of traditional personal-income documentation, subject to lender guidelines.
LTV (loan-to-value): the loan balance divided by the purchase price or appraised value, whichever the program uses. Down payment is 100% minus the maximum LTV.
Reserves: liquid funds you must still hold after closing, counted in months of payments. They are separate from the down payment.
Interest-only period: the early years when payments cover interest only, before the loan starts paying down principal.
Expense ratio: the share of deposits the lender removes as business costs before it counts the rest as income.
What Actually Sets the Down Payment?
The lender’s leverage grid sets the down payment. No federal rule fixes a number for this loan. Each program publishes a maximum LTV for every combination of loan size, occupancy, purpose and credit score, and your down payment is whatever that grid leaves over.
Most advertised minimums describe the best cell on the grid. Across the wholesale network Lendmire works with, that best cell is a primary-residence purchase near $1,000,000 with strong credit. Market surveys report non-QM lenders going as high as 90% LTV with no mortgage insurance, per Scotsman Guide’s non-QM coverage. Within the network, 90% applies only to primary-residence purchases and rate-and-term refinances up to $1,000,000. Above $1,000,000 no program in the network goes to 90%. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Five variables move your number:
1. Loan size. Leverage steps down in bands as the balance rises.
2. Occupancy. Primary residence gets the most leverage. Second homes and investment property get about five points less at most sizes.
3. Purpose. Purchase and rate-and-term refinance sit above cash-out.
4. Credit score. Higher bands ask for higher scores, and the best cells ask for the most.
5. Structure. An interest-only period can carry its own, lower ceiling.
Two wholesale programs cover this space. A portfolio non-QM bank-statement program carries files up to $6,000,000. A bank portfolio jumbo program takes twelve-month-statement files up to $30,000,000 on its own ladder. That ladder begins above $4,000,000, overlaps the first program to $6,000,000, and stands alone beyond it. Both are subject to full underwriting, and nothing here is a commitment to lend.
How Does the 40-Year Term Change the Down Payment?
It does not change it directly. The 40-year term stretches the schedule and lowers the required payment, but the LTV grid still decides how much equity you bring. Investors often assume a longer term buys more leverage. It does not.
A 40-year loan cannot be a qualified mortgage. The federal consumer-finance regulator’s repayment-capacity compliance guide lists a 30-year term cap and a ban on interest-only payments among the features qualified mortgages must follow. NCSHA’s summary of the rule says the same. So a 40-year loan is underwritten to each program’s own guidelines, which is where the leverage grid comes from.
In the portfolio non-QM program, the 40-year term comes with a 10-year interest-only period. Interest-only is available to 85% LTV with a 700 credit floor. That figure is a ceiling on the interest-only structure for purchase and rate-and-term files. It never lifts a cash-out ceiling. In the bank portfolio program, interest-only tops out at 60% LTV or the band’s ceiling, whichever is lower. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
| Structure | Equity effect | Payment effect |
|---|---|---|
| 40-year, 10-year interest-only | Capped at 85% LTV, 700 credit | Lowest early, resets later |
| Fully amortizing 40-year | Follows the size ladder | Lower than 30-year |
| Bank program interest-only | 60% or band ceiling | Lowest early, resets later |
Pricing and available terms vary by lender, borrower profile, property type, and full underwriting review. A longer interest-only runway also leaves a payment reset to plan for, and Scotsman Guide’s reporting on interest-only underwriting notes that some lenders review the file on the higher payment that starts in year 11. Confirm which payment a program reviews your file on before you rely on the early payment. Lendmire’s piece How to Use 40-Year Amortization on a Super Jumbo Bank Statement Loan covers the payment side in depth.
Down Payment Requirements for a 40-Year Super Jumbo Bank Statement Loan, by Size
Leverage steps down as the balance climbs, and the cliffs sit at round numbers. The table shows maximum purchase LTV by band. Every figure is a ceiling through select wholesale programs, subject to underwriting. Down payment is 100% minus the figure.
| Loan size | Primary purchase | Second home | Investment |
|---|---|---|---|
| $300K–$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% |
| $4M–$5M, on review | 65% | 65% | 65% |
Credit minimums climb with size. Mid bands ask for 720, and parts of the $3,500,000 to $4,000,000 band ask for 760. Above the super-jumbo line, a 700 floor applies.
Above $4,000,000, every figure is reviewed case by case before submission. Beyond $6,000,000 the bank program’s ladder takes over: on a primary-residence purchase, 60% from $5,000,000 to $10,000,000 and 55% above that, again on review. Second homes and investment property sit lower, near 55% from $5,000,000 to $10,000,000 and 50% above.
Cash-out sits lower still. On a primary residence, the ceilings step down as loan size rises, and the highest tiers are reviewed case by case. The portfolio program allows unlimited cash-out proceeds at or below 60% LTV, with a $1,500,000 cash-in-hand cap above that. The bank program publishes no cap. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Worked Examples
Run the numbers on three files. These are modeled scenarios, not quotes, and each remains subject to credit, appraisal and underwriting.
A primary residence at $2,200,000. The purchase sits in the $2,000,000 to $2,500,000 band, which allows up to 80% LTV on a primary-residence purchase with 720 credit. The down payment is at least 20%. Reserves run 9 months because the loan is above $1,500,000. Expect closing costs and an appraisal on top. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
An investment purchase at $3,000,000. The $2,500,000 to $3,000,000 band allows up to 75% LTV on an investment-property purchase, so the down payment is at least 25%. Move the price to $3,200,000 and the ceiling drops to 60%. The same borrower now needs at least 40% down. Investors sitting just above a band edge should compare the cost of trimming the price or balance against the extra equity. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
A primary residence at $4,500,000. This falls in the $4,000,000 to $5,000,000 band, where the ceiling is 65% on a primary-residence purchase, on review. The down payment is at least 35%, and every figure above $4,000,000 is reviewed case by case. Overlays also apply at this size: a 700 credit floor, a 0x30x24 housing history, 48-month seasoning after any credit event, and no rural property. Cash-out proceeds cannot satisfy reserves.
Where the Down Payment Comes From, and What Else You Need
Lenders trace down payment funds. Expect to document where the money came from and how long it has been in your accounts. Borrowed down payment funds are generally not accepted. Programs differ on business-account funds and gifts, so ask early for each program’s rule on your specific source.
The asset-based paths are stricter. They count retirement accounts at 70%, or 80% at age 59½ and older. Business funds, gifts, cryptocurrency, unvested stock and most trusts do not count, except a revocable living trust.
Reserves sit on top of the down payment. Across the network the range is:
- 3 months of payments on loans up to $500,000.
- 6 months up to $1,500,000.
- 9 months above $1,500,000.
- 2 more months per additional financed property, up to a 12-month maximum.
- 12 months for first-time investors.
Budget the down payment, reserves, appraisal and closing costs together. The down payment is usually the largest check, but reserves at 9 months can be a significant second one on a loan this large.
How Does Bank Statement Income Affect How Much You Can Buy?
Qualifying income is eligible deposits divided by the number of statement months, after an expense ratio. The portfolio program takes 12 or 24 months of personal or business statements, and the bank program uses 12. Scotsman Guide describes the same approach for self-employed borrowers, with an expense factor applied to deposits.
Across the network, fixed ratios run 20% for a service business with no employees, 40% for one to five employees, and 50% for six or more employees or any product business. An accountant-provided ratio can replace the fixed one, and a profit-and-loss method is capped at 80%. Business statements require at least 25% ownership. Transfers from your own business into your personal account count in full.
Income does not change the equity requirement, but it limits the payment you can carry. Debt-to-income runs up to 50%. A larger down payment lowers the loan and the payment, which can make a tight file work. Credit starts at a 660 floor on the portfolio program and 680 on the bank program, with 700 above the super-jumbo line.
Mortgage Insurance and Other Myths
Myth: a 40-year loan needs less down. It does not. The grid sets equity, and the term sets the schedule.
Myth: every super jumbo can reach 90%. None in the network does above $1,000,000.
Myth: bank statement means no verification. The loan is reviewed on documented income under the applicable program, subject to lender guidelines. Statements must be consecutive, and transaction histories never substitute.
Myth: non-QM means weak credit. The largest, most leveraged cells ask for the strongest scores.
On mortgage insurance, the market line is that non-QM lenders skip it even at high LTV. Within the network, high LTV stops at $1,000,000, so insurance is rarely the deciding question at super-jumbo size.
What If You Are Short on Cash?
Four moves are worth testing before walking away from a purchase.
- Change the band. A price or balance just under a cliff can cut the equity requirement sharply.
- Change the occupancy. Primary residences get the most leverage. A second home or investment property needs more equity at nearly every size.
- Use assets. Asset allowance divides liquid assets by 36, 60 or 84 months. It applies to primary and second homes only, with an 80% maximum. Assets-only needs liquidity equal to the loan plus closing costs.
- Look at rental income. If the property is a rental, a DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Lendmire’s complete DSCR loans guide walks through it.
| Path | Reviewed on | Best fit |
|---|---|---|
| Bank statement | Deposits | Self-employed owners |
| Asset-based | Liquid assets | Cash-rich, low-deposit |
| DSCR | Property rent | Rental purchases |
If the deposits are strong but one earlier year dipped, Lendmire’s article Does One Down Year Sink a Super Jumbo Bank Statement Loan? covers how lenders read it. 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.
Frequently Asked Questions
Can I put 10% down on a super jumbo bank statement loan?
Only at the small end. A primary-residence purchase up to $1,000,000 can reach 90% LTV through select wholesale programs, subject to underwriting and credit of 680 or higher. Above $1,000,000, no program in the network goes to 90%, and above $4,000,000 every figure is reviewed case by case. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Does a 40-year term lower the down payment?
No. It lowers the required payment, but the size ladder still sets equity. The interest-only structure has its own ceiling of 85% LTV on the portfolio program, which rarely matters above $2,000,000. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Do second homes and investment properties need more down?
Yes, usually more down at most sizes. At $3,000,000 to $4,000,000, an investment purchase tops out at 60% LTV against 75% on a primary residence.
Do reserves count toward the down payment?
No. Reserves are separate funds you must still hold after closing. The required amount varies by loan size, and cash-out proceeds cannot satisfy them above the super-jumbo thresholds.
What credit score do I need?
The floor is 660 on the portfolio program and 680 on the bank program, with 700 above the super-jumbo line. The best leverage cells ask for 720 or 760.
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. Reach the team at 828-256-2183. Consumer mortgage lending is licensed in 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.
Lendmire’s self-employed mortgages page presents both super jumbo programs, bank statement and DSCR, side by side.
About Lendmire
Lendmire is a non-QM mortgage brokerage (NMLS# 2371349) arranging DSCR investor loans in 41 markets, including Washington, D.C., through wholesale and investor-lending channels. DSCR loans are evaluated by the lender on rental income rather than personal income, subject to lender guidelines — a fit for LLC-owned portfolios, self-employed investors, and operators scaling beyond conventional loan caps. Recognized as a Scotsman Guide Top Mortgage Workplace in 2025 and 2026.
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References
1. Scotsman Guide, Rev Up the Engine for Non-QM Lending
2. CFPB ATR/QM Small Entity Compliance Guide
4. Scotsman Guide, Don’t Let Good Loans Slip Through the Net
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: 5-Year ARM vs. 7-Year ARM for Super Jumbo Bank Statement Loans · How to Use Cash After a Sale on a Super Jumbo Bank Statement Loan · How to Blend Assets and Deposits on a Super Jumbo Bank Statement Loan
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
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.