The Quick Read: A bank statement loan proves your income from deposits instead of traditional personal-income documentation, and that works on a penthouse the same way it works on any home. The unit also faces a second review of the building itself. You need two approvals: one for your cash flow and one for the property.
- Through select wholesale programs, 12 or 24 months of personal or business statements can replace traditional personal-income documentation, subject to full underwriting.
- Business deposits are reduced by an expense ratio. Transfers from your own business into your personal account count in full.
- Leverage steps down as the loan grows, so larger files face a lower ceiling on a primary residence purchase than smaller ones.
- Larger loan amounts are reviewed case by case before submission.
- A non-warrantable building is usually a lending hurdle, not a deal-killer, but it limits leverage and narrows the lender list.
Who This Fits (and Who It Doesn’t)
The borrower this program serves has strong cash flow and a tax return that shows less. Founders, physicians, attorneys, entertainers, athletes and investors often fit. Write-offs, add-backs and retained earnings can make taxable income look small next to what lands in the bank.
A bank statement loan uses personal or business statements from the previous one to two years. Experian notes that these loans can also call for a larger down payment, liquid assets and some self-employment history. That matches what Lendmire sees across its wholesale network.
It does not fit everyone. If the penthouse is a pure rental and your deposits are thin, a DSCR loan may be the better tool. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. We will get to that choice below.
How Does Underwriting Turn Deposits Into Income?
The underwriter totals your eligible deposits, strips what isn’t income, applies an expense ratio if the account is a business account, and divides by the number of months. That monthly figure is your qualifying income. Everything else in the file is measured against it.
Here is the sequence, step by step:
1. Choose the statement span. Through select wholesale programs, you submit 12 or 24 consecutive months. The bank portfolio jumbo program (the one that carries files up to $30,000,000) uses 12.
2. Pick personal or business accounts. Business statements generally need at least 25% ownership on your part.
3. Strip non-income credits. Refunds, loan proceeds, one-time windfalls and transfers between your own accounts come out.
4. Apply the expense ratio. For business accounts, the ratio is 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 exists on select programs.
5. Divide by the months. The result is monthly qualifying income.
6. Test debt-to-income. Debt-to-income (DTI) compares your monthly obligations to your income. Programs go up to 50%, subject to underwriting.
7. Check reserves. Reserves are liquid funds left after closing. On most files they run 3 months up to $500,000, 6 months up to $1,500,000 and 9 months above, plus 2 months for each additional financed property up to a 12-month maximum.
Transaction histories never substitute for statements. They must be consecutive and complete.
The Deposit-to-Income Walkthrough
This table uses an index of 100, not dollars. It shows how the same year of deposits produces different qualifying income depending on the account type. The inputs are illustrative assumptions, not market data.
| Step | Business account | Personal account |
|---|---|---|
| Gross 12-month deposits | 100 | 100 |
| Less transfers and one-time credits | -10 | -10 |
| Eligible deposits | 90 | 90 |
| Expense ratio (40%, 1-5 employees) | -36 | none |
| Qualifying total | 54 | 90 |
| Monthly qualifying income | 4.5 | 7.5 |
Notice the gap. Deposits you pay yourself from the business into a personal account count at 100%, which is why many founders route owner pay through a personal account and qualify on it. Don’t restructure accounts just before applying, though. Underwriters read the full history, and recently shifted money invites questions.
Why Does a Penthouse Change the File?
A penthouse changes the property side of the file: the building review, the appraisal, the monthly obligation and the loan tier. Your income documentation stays the same. The unit just pushes harder on every limit.
- Loan size. Penthouse prices often land in the larger tiers, where leverage steps down. Large loans are taking a bigger share of non-QM production, with ABC17/Stacker relaying an estimate that loans above $1 million are about 28% of new non-QM volume.
- Appraisal. A condo unit is typically appraised on Form 1073. Penthouses have unusual layouts, terraces and finishes, and true comparables are scarce. Expect the appraiser to stretch to find them.
- Monthly obligation. HOA dues, insurance and taxes sit inside your DTI. On a luxury building they can be heavy. Special assessments matter too.
- Building type. Amenity-heavy and mixed-use towers trip warrantability flags often. That’s the next section.
Warrantable, Non-Warrantable and Condo-Hotel Buildings
A warrantable building meets the standards that the large mortgage agencies set for condo projects. A non-warrantable one falls outside them. For a luxury tower that is common, and it is manageable through the right program.
HomeBuyer.com points out that a non-warrantable condo can’t go through a conventional loan except via portfolio lending. A strong borrower does not override a bad building. The building has to clear its own review.
Typical triggers include heavy investor concentration, one entity owning many units, thin HOA reserves, commercial space, litigation, an unfinished project and short-term rental or hotel-style use.
| Building type | What it means | Leverage ceiling* |
|---|---|---|
| Warrantable condo | Meets standard project rules | To 85% |
| Non-warrantable condo | Fails one or more project tests | To 80% |
| Condo-hotel (condotel) | Hotel-style rental programs | 75% purchase / 65% cash-out |
Ceiling for the project type through select wholesale programs, subject to full underwriting. The loan-size ladder still applies on top, so a large loan sits lower. The bank program caps condotel cash-out at 50%. For the full picture on rental-program buildings, see Lendmire’s piece Can a Founder Finance a Condotel on Business Bank Statements?*. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
What Leverage Can You Expect?
On a primary residence purchase, leverage steps down as the loan grows. Through select wholesale programs, ceilings run 90% up to $1,000,000, 85% up to $2,000,000, 80% up to $3,000,000 and 75% up to $4,000,000. The top step needs the strongest credit tier. Treat all of them as ceilings, never as promises.
Past $4,000,000 the picture changes. Every loan above that size is reviewed case by case before submission. A portfolio non-QM program (a lender that keeps loans on its own books) carries files to $6,000,000. The bank portfolio program begins above $4,000,000, overlaps to $6,000,000 and then stands alone.
A second home or investment property typically runs about five points lower at each size. Cash-out is lower still. Cash-out proceeds are unlimited at or below 60% LTV, and above that the portfolio program caps cash in hand at $1,500,000.
Pricing and available terms vary by lender, borrower profile, property type, and full underwriting review. Above $3,500,000 on a primary residence, and above $3,000,000 on a second home or investment property, extra overlays apply:
- A 700 credit floor.
- A 0x30x24 housing payment history.
- 48 months of seasoning after any credit event.
- U.S. citizens and permanent residents only.
- No non-occupant co-borrowers.
- No rural property.
- Cash-out proceeds cannot satisfy reserves.
Interest-only structures reach 85% LTV on the portfolio program with a 700 floor, on purchase and rate-term files. The bank program stops at 60%. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Documentation and Sourcing Checklist
Complete, unaltered statements are the foundation. Lenders verify the income or assets they rely on with third-party records, so the file has to be clean.
| Item | What the lender wants |
|---|---|
| Statements | 12 or 24 consecutive months, every page |
| Ownership proof | At least 25% of the business, for business accounts |
| Down payment source | Paper trail from statements, not just a letter |
| Large deposits | Written explanation plus supporting records |
| Reserves | Liquid funds after closing, per the size tiers |
| Building documents | HOA questionnaire, budget, reserve study, litigation disclosure |
Ask for the HOA package the moment you go under contract. The building review often decides the schedule more than your income does.
A word on large deposits. If a deposit jumped recently, the underwriter will ask where it came from. Keep the source documents ready.
Should You Use Personal or Business Statements?
Use whichever account actually holds your income. A personal account counts eligible deposits in full. A business account takes the expense ratio but may show more total cash flow.
| Situation | Usually the better path |
|---|---|
| Owner pays self from business | Personal statements |
| Large business revenue, modest owner pay | Business statements |
| Commingled personal and business funds | Expect extra questions |
| Accountant can document a lower expense ratio | Business statements with that ratio |
Run both versions before you commit. Many borrowers are surprised by which one wins.
Bank Statements, Assets, P&L or DSCR?
Pick the path by how you can best prove the loan is repayable. The same penthouse can be financed several ways.
| Path | Best when | Watch for |
|---|---|---|
| Bank statements | Strong deposits, thin tax income | Uneven or declining deposits |
| Asset allowance | Large liquid balances | Primary and second homes only |
| Assets-only | Very large liquidity, no income needed | Liquidity must equal loan plus costs |
| P&L method | Accountant-prepared figures are strong | Program-specific limits |
| DSCR | Pure rental | Thin rent relative to price |
Asset allowance divides liquid assets by 36, 60 or 84 months. Retirement accounts count at 70% (80% at age 59.5 or older). Business funds, gifts, cryptocurrency and unvested stock never count. Assets-only needs U.S. liquid assets equal to the loan plus closing costs, plus 60 months of any net loss on other residential property.
On DSCR, be realistic. A high-end penthouse often rents for thin money relative to its price, so coverage can land under 1.00. Programs below 1.00 coverage do exist through select lenders in the network, but leverage and terms adjust. For a pure investment, compare both routes in Lendmire’s guide DSCR Loan Vs Bank Statement Loan For Investors. Bank statements suit the borrower with strong deposits and thin property income.
Primary Home, Second Home or Investment?
Occupancy sets the leverage ladder and the available paths. Penthouses are usually one unit, which keeps second-home rules simple.
| Occupancy | Leverage tendency | Notes |
|---|---|---|
| Primary residence | Highest ladder | Asset allowance available |
| Second home | About five points lower | One unit only |
| Investment | About five points lower | Business-purpose loan |
Investment loans are designed for non-owner-occupied property. Because they are business-purpose loans, they are reviewed differently from a standard owner-occupied mortgage. If the penthouse is held in an entity or trust, a revocable living trust is the usual workable option, and the rest depends on program terms. For the wider investor picture, read the complete DSCR loans guide.
Does Bank Statement Mean No Verification?
A bank statement loan is still verified. Federal rules let a lender base its repayment decision on income, assets or both, and the lender must verify what it relies on with third-party records. Your word is not evidence. Your statements are.
Non-QM loans sit outside the standard safe harbor, so each lender sets its own DTI threshold and still has to make a good-faith repayment determination. That is why guidelines differ from one program to the next. It is also why shopping across several programs matters.
Order of Operations, From First Call to Closing
The sequence matters more than any single document.
1. Have a conversation with your broker about statements, occupancy and the building type before you make offers.
2. Run the deposit-to-income math on both personal and business accounts.
3. Confirm leverage and reserves against the loan tier your price lands in.
4. Go under contract and request the HOA package right away.
5. Submit statements, asset documents and the building file.
6. Order the appraisal and review the condo project.
7. Clear conditions and close.
Lendmire is a broker. It shops multiple wholesale programs, and the lender underwrites and approves.
Mistakes That Sink the File
- Applying with an account you recently reshuffled.
- Skipping the building review until late.
- Assuming a gift letter proves the down payment.
- Ignoring HOA dues and special assessments in DTI.
- Using a program that won’t touch the building type.
- Forgetting that cash-out proceeds can’t satisfy reserves above the super-jumbo line.
- Expecting a flat ceiling on a file above $4,000,000.
Key Terms Defined
Bank statement loan: A mortgage that is reviewed around deposits in your statements instead of traditional personal-income documentation.
Non-warrantable condo: A building that falls outside standard condo-project rules, such as heavy investor ownership or thin reserves.
Expense ratio: The share of business deposits removed to estimate real income.
Seasoning: The waiting period a lender wants after an event, such as a credit event or a funds deposit.
Super jumbo: A very large loan, usually in the multi-million range, with its own tighter rules.
PITIA: Principal, interest, taxes, insurance and association dues, the full monthly housing obligation.
DSCR: Debt service coverage ratio, which compares a property’s rent to its monthly payment.
Frequently Asked Questions
Can I use bank statements on a penthouse that is a second home?
Yes, through select wholesale programs. Second homes run about five points lower in leverage than a primary residence at each size, and second homes are limited to one unit. Overlays tighten above $3,000,000, and files above $4,000,000 are reviewed case by case.
What if my building is non-warrantable?
It narrows the lender list rather than ending the search. Through select wholesale programs, non-warrantable condos run to 80% before the loan-size ladder lowers it further. The building still needs to pass its own review, and no strong borrower profile can replace that.
Do I need two years of statements?
Not always. The portfolio program takes 12 or 24 months, and the bank program uses 12. Twelve months can work when your deposits are steady, while 24 can help if a recent surge needs a longer track record behind it.
Can I qualify without income documents at all?
There are asset-based routes that qualify on liquid assets instead of deposits. Asset allowance and assets-only both exist through select programs for primary and second homes. They test your liquidity, not your income, and each carries its own limits.
Should I pick DSCR for my penthouse?
Choose DSCR only if the unit is a rental and its rent can carry the payment. A luxury unit’s rent often runs thin against its price, so coverage may come in under 1.00. Strong deposits and thin property income point toward bank statements instead.
Next Step
Tax treatment varies; consult a qualified professional before relying on any deduction.
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. You can reach the team at 828-256-2183. Nothing here is a commitment to lend, and every file is underwritten individually.
Self-employed borrowers can compare both super jumbo programs on Lendmire’s self-employed mortgages page.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage built around DSCR investor lending, with programs available in 41 markets, including Washington, D.C. DSCR lenders commonly evaluate rental-income coverage instead of personal income paperwork — a practical fit for LLC-owned and multi-property investors. Terms vary by lender, property, leverage, and program. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Experian, What Is a Bank Statement Loan?
2. ABC17/Stacker, Non-QM Shift
3. HomeBuyer.com, Non-Warrantable Condominium
4. CFPB, Regulation Z § 1026.43
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 Get a Super Jumbo Bank Statement Cash-Out as an Entertainer · How To Use A Personal Account For A Super Jumbo Bank Statement Loan · Can You Use Bank Statements on an LLC-Held Super Jumbo Cash-Out?
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.