The Quick Read: Usually at least 25% of the lower of purchase price or appraised value on a purchase, because the interest-only option tops out at 75% LTV. Interest-only changes the payment tested for coverage, not the equity you bring. Above $3,000,000 the size ladder is already tighter than the interest-only cap, so the down payment climbs further. Every figure below is a ceiling through select wholesale programs, subject to underwriting.
- 25% down is the floor on an interest-only purchase (75% LTV maximum).
- $150,000 to $1,000,000 loans can reach 80% LTV on a standard purchase, but not with interest-only.
- $3,000,000 to $4,000,000 loans drop to 65% LTV on a purchase, so 35% down.
- $4,000,000 to $10,000,000 loans run 60% LTV on review, so 40% down, case by case.
- Reserves and closing costs are separate from the down payment. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Plenty of investors assume a bigger loan with a lighter payment structure means less cash up front. It doesn’t. The structure helps monthly coverage. The equity requirement stays tied to loan size.
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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.
What Does “Super Jumbo” Actually Mean Here?
“Super jumbo” is a lender label, not a regulatory category. No agency sets the threshold. For context, the baseline one-unit conforming limit is $832,750, with a high-cost ceiling of $1,249,125, according to a law-firm summary of the FHFA announcement, and NAHB reports the same baseline. Anything above those limits is jumbo. Across Lendmire’s wholesale network, the super jumbo ladder runs from $150,000 to $10,000,000 on the portfolio investor program, while Lendmire’s standard DSCR program stops at $3,000,000.
That ladder is built for business-purpose investment property: 1-4 units, entity vesting welcome, and qualification primarily on property-level rental income covering the payment, subject to lender guidelines. Think luxury rentals, high-value multi-unit buildings, and trophy single-family holdings.
How Much Down Do You Need at Each Loan Size?
The down payment is 100% minus the LTV, applied to the lower of price or value. Leverage steps down as the balance rises, and credit minimums step up.
| Loan size | Purchase LTV | Minimum down | Credit floor |
|---|---|---|---|
| $150K–$1M | 80% | 20% | 660+ |
| $1M–$3M | 75% | 25% | 700+ |
| $3M–$4M | 65% | 35% | 700+ |
| $4M–$10M | 60% on review | 40% | 700+ |
Those are best-case cells at 1.00 coverage or better. Above $4,000,000, every request is reviewed case by case before submission, purchase or rate-and-term only. Nothing here is a commitment to lend.
Now layer interest-only on top. On most programs in the network, interest-only runs 120 months on 30- and 40-year terms, with a 75% maximum LTV, and is reviewed on interest, taxes, insurance, and dues (ITIA) at 0.75 coverage or better. The lower of the ladder LTV and the interest-only cap controls. So at $1,000,000 and under, picking interest-only moves you from 80% LTV to 75%. Five points more cash, in exchange for a lighter tested payment. Above $3,000,000 the ladder is already below 75%, so interest-only adds nothing to leverage. Confirm that interaction against the current matrix on any file that large.
Does Interest-Only Lower the Down Payment?
No. Interest-only removes principal from the payment used in the coverage test. It leaves credit, leverage, and reserve requirements where they were. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Here is where the choice matters. Standard coverage is rent divided by principal, interest, taxes, insurance, and dues. Interest-only coverage is rent divided by the same bill with principal stripped out. The rent side doesn’t move. Only the denominator shrinks.
Picture a luxury rental in the $2,000,000 to $3,000,000 band at 75% LTV with a 720+ credit profile. That file doesn’t need interest-only to qualify. For a file sitting at 0.90x on the full payment, interest-only can push coverage into cleaner territory without touching price or rent. Reduced-coverage files in the 0.75 to 0.99 range are a real select-program path to $2,000,000, though LTV and terms adjust, subject to underwriting. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
The flip point: if your file clears coverage comfortably on a fully amortizing payment, interest-only buys you cash flow but costs you up to five points of leverage at the lower tiers. If it doesn’t clear, interest-only may be the structure that makes the deal work. Either way, the down payment doesn’t shrink.
Down Payment, Reserves, and Closing Costs Are Three Pots
The down payment is only one of three cash needs. Most programs we place files with ask for six months of reserves on the subject property, measured as ITIA on an interest-only file, and twelve months for first-time investors. Reserves can’t be the same dollars as your down payment, and cash-out proceeds never satisfy reserves. Closing costs sit in a third pot.
Above $2,000,000, two appraisals are required. Because LTV applies to the lower of price or value, a low appraisal increases the cash you need. Budget for that gap before you go under contract, not after.
Where Can the Down Payment Come From?
From your own verified funds, with a few documented exceptions. There is no zero-down DSCR program. Some options the network does recognize:
- Cash-out proceeds from another investment property can fund a down payment on the next one.
- Gift funds typically carry a 10% borrower-contribution requirement.
- Borrowed funds, such as a HELOC draw, are treated differently by program. Confirm before you draw.
Large down payments draw scrutiny on sourcing. Keep statements clean and transfers traceable. If a cash-out refinance supplies the equity, remember the ladder caps it: unlimited proceeds at or below 60% LTV, a $1,500,000 cap above 60%, and no cash-out above $3,000,000. On cash-out, interest-only still obeys the same size ceilings, so it can’t lift a super jumbo refinance past the ladder. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Where the Rule Bends
Short-term rentals. Files are available to $2,000,000 at 1.00 coverage or better, with income counted at 80% of gross from twelve months of operating history on a refinance, or the appraisal’s short-term-rent analysis on a purchase. Interest-only STR purchases stay at the 75% ceiling. Short-term rental rules vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income. Experienced investors only.
No-ratio and reduced coverage. No-ratio files through select wholesale programs reach $2,000,000 at reduced leverage with a seven-year clean housing history, subject to underwriting. Expect more cash down, not less.
Cash-out. A 60% LTV is the ceiling on most super jumbo cash-out above $1,500,000. The “down payment” is really the equity you leave in.
Credit. Credit minimums step up with size. Above $3,000,000, the floor is 700 with 0x30x24 housing history, 48-month event seasoning, and citizens and permanent residents only.
What Investors Often Get Wrong
“Interest-only means a smaller down payment.” It means a smaller tested payment. The leverage cap goes down, not up.
“Super jumbo is an official category.” It isn’t. The label shifts from lender to lender.
“Business-purpose means no rules.” DSCR loans are designed for non-owner-occupied investment property, so they are reviewed differently from a standard owner-occupied mortgage. The CFPB’s TILA guide treats credit extended primarily for business purposes as outside Regulation Z. Lenders still underwrite credit, assets, and the property.
“Higher coverage means safer.” Interest-only lifts the ratio, but the payment steps up when the interest-only period ends. Stress-test the post-reset payment against rent before you commit. If the file only works on interest-only, that’s a signal to put more down or choose a different property.
When Should You Put More Than the Minimum Down?
Put more down when the post-reset coverage is thin, when you’re sitting just above a tier boundary, or when an appraisal risk could shift value. Going from 75% to 65% LTV on a $2,500,000 purchase, for instance, is a real trade: more equity locked in, more cushion on coverage, and more room if rents soften. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Put the minimum down when coverage clears with room and your capital earns more elsewhere. Staying under a tier boundary, such as $1,000,000 or $1,500,000, can change both the LTV and credit requirement, so a small price adjustment can be worth more than it looks.
For the mechanics of the payment step-up, see Lendmire’s piece on how a super jumbo DSCR loan handles interest-only and the payment reset. For the broader program picture, the complete DSCR loans guide covers qualification end to end.
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.
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.
Key Terms Defined
LTV (loan-to-value): The loan amount divided by the lower of purchase price or appraised value.
Down payment: The share of price you fund yourself, equal to 100% minus the LTV.
ITIA: Interest, taxes, insurance, and association dues, the payment tested on an interest-only file.
Reset: The point where the interest-only period ends and principal payments begin.
Reserves: Liquid funds held after closing, separate from the down payment.
Coverage (DSCR): Monthly rent divided by the monthly obligation being tested.
Frequently Asked Questions
Is zero down possible on an interest-only super jumbo DSCR loan?
No. There is no zero-down DSCR program in the network. The smallest down payment on an interest-only purchase is 25%, and it climbs at the larger loan sizes.
Does a bigger down payment help coverage?
Yes. More equity means a smaller loan and a smaller tested payment, which lifts the ratio on the same rent. It can also move a file from a reduced-coverage path toward the 1.00 benchmark, where full leverage is available, subject to underwriting.
Do I need reserves on top of the down payment?
Yes. Expect six months on the subject property, measured as ITIA on interest-only files, and twelve months for first-time investors. Reserves are held separately from the down payment and closing costs.
Can I use interest-only above $3,000,000?
It depends on the file. The ladder already limits purchases to 65% LTV from $3,000,000 to $4,000,000 and 60% on review above $4,000,000, so interest-only adds nothing to leverage there. Confirm availability per scenario. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Can I put in an LLC?
Entity vesting is welcome, subject to lender program eligibility, with no layered entities.
If you are buying or refinancing a high-balance rental property and want to see how the numbers work, Lendmire, a mortgage broker arranging business-purpose financing through select lenders in its wholesale network across 41 markets including Washington, D.C., can help you compare super jumbo DSCR loan options based on the property income, the loan balance, credit profile, leverage, and investor goals. Program details 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 — is a DSCR and non-QM mortgage brokerage with investor loan programs in 41 markets, including Washington, D.C. DSCR eligibility is commonly reviewed by the lender around property-level rent rather than personal income documentation, subject to lender guidelines, and the brokerage helps arrange financing for LLC-owned portfolios beyond conventional financed-property limits. Recognized by Scotsman Guide as a Top Mortgage Workplace in 2025 and 2026.
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References
1. Orrick: FHFA announces conforming loan limit increases
2. NAHB: conforming loan limits
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: How High a DSCR Ratio Does a Jumbo DSCR Loan Need? · How High a Credit Score Does an Interest-Only Super Jumbo DSCR Loan Need? · How to Document a Super Jumbo DSCR Loan
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.