The Quick Read: Usually 15% to 25% down on a second-home purchase when the loan stays at or under $3,000,000, then 35% or more once the loan passes that line. The down payment is whatever the maximum loan-to-value (LTV) ratio for your loan amount leaves uncovered, through select wholesale programs, subject to full underwriting. Every file above $4,000,000 is reviewed case by case. The bands below are loan amounts, not purchase prices. Here is the shape of it on a second-home purchase:
- Loan up to $1,000,000: maximum 85% LTV, so about 15% down, with credit typically at 700 or higher.
- Loan of $1,000,000 to $2,000,000: maximum 80% LTV, so about 20% down.
- Loan of $2,000,000 to $3,000,000: 80% LTV to $2,500,000, then 75%, so 20% to 25% down.
- Loan of $3,000,000 to $4,000,000: maximum 65% LTV, so about 35% down, with credit typically at 760 or higher.
- Loan above $4,000,000: reviewed case by case, and the percentages keep climbing.
A second home runs about five points lower than a primary residence at most sizes. The gap widens at the top of the ladder.
What Counts as Super Jumbo on a Bank Statement Loan?
No regulator defines super jumbo. The only official line is the conforming loan limit, and everything above it is jumbo. Per Consumer Finance Monitor, the current baseline one-unit conforming limit is $832,750, with a high-cost ceiling of $1,249,125. Orrick reports the same figures.
Super jumbo is a lender label. Across our wholesale network, the point where the rules tighten is not one number. It shows up in bands. Leverage steps down at $1,000,000, $2,000,000, $3,000,000 and $4,000,000 of loan amount. Extra overlays start above $3,000,000 on a second home. On a primary residence they start above $3,500,000.
That matters because the label does not set your down payment. Your loan amount band does, together with occupancy. A second-home loan above $3,000,000 sits in a tighter band than a primary-home loan of the same size.
Key Terms Defined
Overlay: an extra rule a lender adds on top of the base program once the loan gets large. Examples include a higher credit floor or a stricter housing payment history.
Seasoning: the waiting period a lender wants after a credit event or after funds land in an account. It proves the money and the credit history are stable.
Reserves: liquid cash left over after closing, counted in months of the property’s full monthly obligation.
Expense ratio: the percentage a lender subtracts from business deposits to estimate what you actually keep as income.
Case-by-case review: a file the lender prices and sizes individually before submission, with no flat percentage to quote.
How Does the Down Payment Change by Loan Size?
The down payment rises as the loan grows, and it rises faster on a second home than on a primary residence. The table shows the minimum down payment on a purchase, which is 100% minus the maximum LTV. Every figure is a ceiling through select wholesale programs, subject to full underwriting.
| Loan size | Second home max LTV | Second home min down | Primary home min down |
|---|---|---|---|
| $300K–$1M | 85% | 15% | 10% |
| $1M–$2M | 80% | 20% | 15% |
| $2M–$2.5M | 80% | 20% | 20% |
| $2.5M–$3M | 75% | 25% | 20% |
| $3M–$4M | 65% | 35% | 25% |
| $4M–$5M | 65% on review | 35% on review | 35% on review |
| $5M–$10M | 55% on review | 45% on review | 40% on review |
| $10M–$30M | 50% on review | 50% on review | 45% on review |
The bands are loan amounts. To use the table, multiply the price by the leverage you want first, then read the band that loan falls in.
Credit tiers ride along with those bands. On a second-home purchase, the lower bands typically want 680 to 720. The $3,000,000 to $5,000,000 band typically wants 760. Above the super-jumbo line, the program floor is 700.
Above $4,000,000, treat the table as a starting conversation, not a quote. The size ladder above that point comes from a bank portfolio program that carries twelve-month-statement files to $30,000,000. It overlaps the portfolio non-QM program, which carries files to $6,000,000. Each file is reviewed before submission.
Why Do Second Homes Get Held Tighter?
Lenders see a second home as the loan a borrower is most likely to let slip in a squeeze. A primary residence is where you live, so you protect it. A vacation property is the first thing to go when cash gets tight.
So the lender asks for more equity up front. A bigger down payment means a smaller loan against the same value, and a bigger cushion if the market drops. Higher credit floors and a one-unit-only rule for second homes come from the same thinking.
Jumbo loans add a second layer. They sit outside conforming limits, so no government-backed buyer stands behind them. The lender or its investor carries the full risk. The extra cash you put in is how that risk gets priced.
Purchase vs. Cash-Out: Which Ladder Applies?
A purchase uses the higher ladder.
| Loan size | Purchase max LTV | Cash-out max LTV |
|---|---|---|
| $300K–$1M | 85% | 75% |
| $1.5M–$2M | 80% | 75% |
| $2.5M–$3M | 75% | 60% |
| $3M–$4M | 65% | 55% |
| $5M–$6M | 55% on review | 50% on review |
All of these are second-home figures. Cash-out has its own limits. Proceeds are unlimited at or below 60% LTV. Above 60%, the portfolio program caps cash in hand at $1,500,000. On a file in the overlay range, cash-out proceeds cannot be counted toward reserves. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
How Does Bank Statement Income Affect the Down Payment?
Your income method does not move the ladder. Loan size, occupancy and credit move it. Income decides whether you qualify at that leverage in the first place.
Bank statement qualifying uses 12 or 24 consecutive months of personal or business statements. The bank program uses 12. For business accounts, you need at least 25% ownership. The lender takes eligible deposits, divides by the statement months, and subtracts an expense ratio:
- A flat 20% ratio applies to a service business with no employees.
- A flat 40% ratio applies to businesses with one to five employees.
- A flat 50% ratio applies to businesses with six or more employees or any product business.
- An accountant-provided ratio, or a profit-and-loss method capped at 80%, is another option.
Transfers from your own business into your personal account count in full. Statements must be consecutive, because a transaction history is not a substitute. Debt-to-income can run up to 50%.
A thin income file does not lower your down payment requirement. It can cap the loan amount you qualify for, which pushes you toward a cheaper property or more cash. Even a bank statement file carries real underwriting. The CFPB’s ability-to-repay guide lists eight factors a lender must consider, including income or assets, debts and credit history. It does not dictate one underwriting model, which is why deposit-based qualifying exists.
There is also an asset route for primary and second homes, up to 80% LTV. Asset allowance divides your liquid assets by 36, 60 or 84 months. The 84-month version applies to standalone files and to any loan above $3,500,000. Assets-only qualifying skips debt-to-income when liquid U.S. assets equal the loan plus closing costs. Retirement accounts count at 70%, or 80% from age 59.5. Gifts, business funds, cryptocurrency and unvested stock never count on those paths. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Where Does the Cash Have to Come From?
The cash needs a paper trail. Plan for the down payment, closing costs and reserves to be documented and seasoned in your accounts before you apply. A large deposit with no explanation is a common way a file stalls.
Reserves come on top of the down payment, not out of it. Through select wholesale programs, subject to full underwriting, the typical requirement is:
- 3 months of reserves for loans to $500,000.
- 6 months for loans to $1,500,000.
- 9 months above that.
- 2 more months for each additional financed property, to a 12-month maximum.
- 12 months for first-time investors. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
If you already own several financed properties, those add-on months stack. Many high-net-worth borrowers hit this wall. They have the down payment, but the cash after closing falls short. Count both numbers before you commit to a price.
Worked Examples (Percentages and Ratios Only)
These are modeled scenarios, not market data. Each one is expressed in percentages and ratios rather than dollar conversions. In each, the price comes first, then the leverage, and the resulting loan decides the band.
A $1,800,000 mountain cabin. You run a dental practice with six employees, so the expense ratio is 50%. On a second-home purchase, an 80% loan lands in the $1,000,000 to $1,500,000 band. That band allows 80% LTV on a second home, with credit typically at 680 or higher. You need about 20% down. The loan stays under the $1,500,000 line, so reserves typically sit in the 6-month tier. If you also finance two other properties, reserves increase by additional months, up to the 12-month maximum. The real question is whether your deposits clear the expense ratio at a debt-to-income of 50% or lower.
A $3,200,000 beach house. The price is above $3,000,000, but the loan is what gets read against the ladder. At 80% of price, the loan would land in the $2,500,000 to $3,000,000 band, where a second home tops out at 75%. At 75% of price, the loan lands in the $2,000,000 to $2,500,000 band, where the ceiling is 80%, so the file fits. The working figure is 75% LTV, which means about 25% down, with credit typically at 720 or higher. The super-jumbo overlays (a 700 credit floor, a 0x30x24 housing history, 48 months of seasoning on any credit event, no non-occupant co-borrowers, no rural property) start with loans above $3,000,000 on a second home, so this file sits below them. Price alone did not set the tier. The loan did.
A lake estate where the loan itself tops $4,000,000. Everything is reviewed case by case. The ladder points to a maximum of about 65% LTV on a second-home purchase, on review, so expect roughly 35% down or more. Treat any percentage as a ceiling the lender may trim, not a promise. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Bank Statement Loan or DSCR for a Vacation Home?
Use a bank statement loan if you will use the home yourself and rent it only occasionally. Use a DSCR loan if it is really a rental. DSCR is the debt service coverage ratio: the property’s rent divided by its full monthly obligation. The loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines.
| Factor | Bank statement second home | DSCR investment property |
|---|---|---|
| Reviewed on | Your deposits or assets | The property’s rent |
| Occupancy | Personal use | Rental, business purpose |
| Leverage on a $3M–$3.5M loan, purchase | 65% max | 60% max |
| Rental income | A cushion at most | The core test |
On a personal-use second home, rent is typically a bonus, not income you can lean on. A cabin with a documented rental history sits in a gray zone. If the numbers depend on the rent, that points toward DSCR, and the leverage ladder for investment property is lower still at some sizes. Lendmire’s complete DSCR loans guide explains how that structure works.
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.
Choose occupancy honestly. Calling a rental a second home to get better leverage is misrepresentation, and lenders treat it that way. 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 If You Cannot Reach the Number?
You have more levers than you think. The first is loan size. Dropping into the next band down can move leverage by five to ten points. A loan just above $3,000,000 can carry a much bigger equity requirement than one just below it.
The second is credit. Several bands tie higher leverage to a higher score, so a score that moves up a tier can unlock the stated maximum. The third is the asset route. If your liquidity is strong but your deposit history is uneven, asset allowance on a primary or second home, up to 80% LTV, can change how you qualify. The fourth is the structure itself. A primary residence runs five points higher, and a DSCR file may suit a property that will truly be rented. Every figure here varies by lender and program: guidelines, property type, leverage, and credit profile all apply.
A broker can compare how several wholesale programs treat the same file, since credit tiers, overlays and cash-out caps differ from lender to lender.
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
Do I need 20% down on a super jumbo second home?
Often, yes, but not always. On a second-home purchase, 20% down is about right when the loan runs from $1,000,000 to $2,500,000. It is 15% for loans below $1,000,000 and 25% for loans from $2,500,000 to $3,000,000. Above $3,000,000 it climbs to 35% and beyond. Figures are ceilings through select wholesale programs, subject to full underwriting.
Does the price or the loan amount set the tier?
The loan amount sets the band, and the band sets the maximum LTV and the credit floor. Multiply the price by your leverage first, then read the band that loan falls in. A larger down payment can pull the loan into a lower band, which can improve the leverage allowed. For example, putting more cash into a high-priced purchase can drop the loan below $3,000,000, where the ladder and overlays are friendlier.
Can retirement funds be the down payment?
They can help, with limits. On the asset paths, retirement accounts count at 70% of their value, or 80% for borrowers age 59.5 or older. Gifts and business funds do not count on those paths. Any funds you use for the down payment should be documented and seasoned.
Is a lower down payment always better?
Not necessarily. More leverage means a larger loan, and a larger loan carries a bigger monthly obligation and a higher debt-to-income. Some files that qualify at maximum LTV fall short at 50% debt-to-income. Putting in more cash can make a file easier to qualify and less stretched.
Can rental income help me qualify on a second home?
Only a little. On a personal-use second home, rent is typically a cushion, not qualifying income. If the property will truly be rented, a DSCR structure tests the property itself. That path runs on the investment-property leverage ladder instead of the second-home ladder.
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 broker that shops multiple wholesale programs and does not lend directly. Its consumer mortgage lending is licensed in 16 states, and nothing here is a commitment to lend.
Past $4,000,000 of loan amount, the second-home down payment stops being a table lookup and becomes a negotiation, so the borrowers who plan their cash early are the ones who keep the most options.
Lendmire’s self-employed mortgages page presents both super jumbo programs, bank statement and DSCR, side by side.
About Lendmire
As a non-QM mortgage broker (NMLS# 2371349), Lendmire facilitates DSCR investor loans across 41 markets, including Washington, D.C. DSCR eligibility is generally reviewed around property-level rental income instead of personal income documentation, subject to lender guidelines, serving LLC-structured portfolios and self-employed borrowers who don’t fit conventional boxes. A two-time Scotsman Guide Top Mortgage Workplace (2025, 2026).
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References
1. Consumer Finance Monitor — FHFA Announces Conforming Loan Limits
2. Orrick InfoBytes — FHFA Increases to Conforming Loan Limits
3. CFPB — Ability-to-Repay and Qualified Mortgage Small Entity Compliance Guide
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: Is a Super Jumbo Bank Statement Loan Available in California? · How to Qualify for a Super Jumbo Bank Statement Loan in Montana · How to Document a Mixed-Income 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.