The Quick Read: This loan is reviewed for a wealthy, self-employed Texas borrower on twelve or twenty-four months of bank deposits, or on liquid assets, instead of traditional personal-income documentation. Lenders then size the mortgage by price band, occupancy and credit through select wholesale programs, subject to full underwriting, with files from $300,000 up to $30,000,000. It is a Lendmire-style broker placement, not a single product with one rulebook.
- Income comes from deposits after an expense ratio, or from assets divided over a long window.
- Leverage steps down as the loan grows, and everything above $4,000,000 is reviewed case by case before submission.
- A Texas homestead cash-out follows its own constitutional rules, while a rental follows investment-property rules.
- Rentals that stand on their own rent are often better matched to a property-based loan than to a personal-income loan.
What Is This Loan, and Why Do Tax Returns Miss the Real Picture?
“High net worth bank statement mortgage” is not an official program name. It blends two non-QM income methods. One reads deposits. The other reads wealth.
Founders, physicians, attorneys, entertainers and athletes often show low taxable income. Write-offs, depreciation and reinvested profit shrink the number on a return. The bank account shows what actually came in. Trade coverage from Scotsman Guide describes the same split. A self-employed borrower supplies 12 to 24 months of statements, and wealthy borrowers who hold assets may qualify on the income those assets can support.
Non-QM does not mean no documentation. Across the wholesale network Lendmire places files with, the file still gets full underwriting: statements, credit, reserves, appraisal and a debt-to-income test. The loan is reviewed on documented income under the applicable program, subject to lender guidelines. The method of documenting income is what changes.
How Does Underwriting Turn Deposits Into Income?
Underwriting works through a fixed sequence. The steps below are how most programs in the network treat a bank statement file.
1. Pick the window. Borrowers choose 12 or 24 consecutive months. The bank portfolio program uses 12.
2. Supply every page. Statements must be consecutive. A transaction history never substitutes for a statement.
3. Scrub the deposits. The underwriter removes transfers between the borrower’s own accounts, refunds, gifts, loan proceeds and one-time windfalls.
4. Apply the expense ratio to business accounts. 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. A borrower can instead supply an accountant-prepared ratio or use a profit-and-loss method, which carries its own 80% cap.
5. Divide by the statement months. The result is monthly qualifying income.
6. Test the file. Debt-to-income can run up to 50%, and credit, reserves and the property are reviewed alongside it.
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Bank statement documentation varies with the business profile, and the ratios applied depend on the program and the borrower’s situation.
Business statements need at least 25% ownership. Qualifying deposits are counted in proportion to the borrower’s stake.
A Worked Example (Modeled, Not Market Data)
Assume a product business shows $2,400,000 of deposits across twelve months of statements. The underwriter removes $200,000 of transfers between the owner’s accounts, leaving $2,200,000. The product-business ratio of 50% leaves $1,100,000. Divide that by twelve and the result is the monthly income used against the borrower’s debts, including the new mortgage.
Now change one thing. If the owner moves the same business money into a personal account, a transfer from the borrower’s own business counts at 100%. The expense ratio is applied at the business account instead. That is why the choice of account matters.
Personal or Business Statements: Which Path Fits?
Personal statements are simpler when the borrower already moves business profit into a personal account. Business statements fit owners whose money stays in the company. Each route carries a different test.
| Factor | Personal statements | Business statements |
|---|---|---|
| Expense ratio | Generally none on transfers | 20%, 40%, 50% or accountant ratio |
| Ownership test | Borrower’s own account | At least 25% ownership |
| Own-business transfers | Count at 100% | Net of expenses |
| Best fit | Owner pays self regularly | Profit stays in the entity |
Neither path forgives messy statements. Uneven or falling deposits pull the average down, and a rising trend helps. An accountant-supplied ratio can beat a default when real costs run below the fixed ratio, and it can hurt when they run higher.
How Big a Loan, and What Leverage Applies?
Loan amounts run from $300,000 to $30,000,000 through two wholesale programs. A portfolio non-QM program carries files to $6,000,000. A bank portfolio program carries twelve-month-statement files to $30,000,000 on its own ladder. Where the two programs overlap, the bank program’s ladder is available alongside the portfolio program up to $6,000,000. Above $6,000,000 it stands alone.
Leverage steps down as the balance grows. The table shows primary-residence ceilings, each available through select wholesale programs, subject to full underwriting.
| Loan size | Purchase | Rate-term | Cash-out | Credit for this leverage | Program |
|---|---|---|---|---|---|
| $300K–$1M | 90% | 90% | 80% | 680+ | Portfolio |
| $1M–$1.5M | 85% | 85% | 80% | 700+ | Portfolio |
| $1.5M–$2M | 85% | 85% | 75% | 720+ | Portfolio |
| $2M–$3M | 80% | 80% | 70% | 720+ | Portfolio |
| $3M–$3.5M | 75% | 75% | 65% | 720+ | Portfolio |
| $3.5M–$4M | 75% | 70% | 65% | 760+ | Portfolio, super-jumbo overlays |
| $4M–$5M | 65% | 65% | 60% | 680+ | Bank, case by case |
| $5M–$10M | 60% | 60% | 55% | 680+ | Bank, case by case |
| $10M–$30M | 55% | 55% | 50% | 680+ | Bank, case by case |
Read the credit column carefully. It is the score that cell’s top leverage needs. It is not a program floor. The floors are 660 on the portfolio program, 680 on the bank program and 700 above the super-jumbo line. A lower score takes a lower leverage cell inside the same band. Above $4,000,000 every figure is reviewed case by case before submission, so none of these is a flat promise.
Second homes and investment property use their own ladders. On an investment property, purchase leverage is 85% with a 75% cash-out ceiling for files from $300,000 to $1,000,000 at 700+ credit. At $2,500,000 to $3,000,000 on an investment property, purchase leverage is 75% and the cash-out ceiling is 60%. Between $3,000,000 and $4,000,000 the bank program takes over at 60% on a purchase and 55% on a cash-out. From $4,000,000 to $5,000,000 the investment cell is 65% on a purchase and 55% on a cash-out, at 760+ credit and on review. A second home runs 85% on a purchase and 75% on a cash-out from $300,000 to $1,000,000 at 700+ credit. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Never assume a primary-residence figure applies to a rental or a vacation home. Take every number from the occupancy’s own ladder.
Other terms worth knowing:
- Credit and DTI: 660 floor on the portfolio program, 680 on the bank program, 700 above the super-jumbo line, with debt-to-income up to 50%.
- Reserves: 3 months to $500,000, 6 months to $1,500,000 and 9 months above. Add 2 months per additional financed property, to a 12-month maximum. First-time investors carry 12 months.
- Cash-out: unlimited proceeds at or below 60% LTV. Above 60%, the portfolio program caps cash in hand at $1,500,000, and the bank program publishes no cap.
- Interest-only: the portfolio program allows it to 85% LTV with a 700 floor on purchase and rate-term files, using a 40-year term with a 10-year interest-only period. The bank program stops at 60% with 5- and 7-year fixed-period adjustables. A 10-year fixed-period adjustable is fully amortizing.
- Overlays: above $3,500,000 on a primary residence and $3,000,000 on a second home or investment property, programs require a 700 credit floor and a clean 0x30x24 housing history. They also require 48 months of seasoning after any credit event, and U.S. citizens or permanent residents only. No non-occupant co-borrowers, no rural property and a ten-acre maximum apply, and cash-out proceeds cannot satisfy reserves. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
The Asset Path: When Wealth Replaces Deposits
The asset path suits borrowers whose balance sheet is strong but whose deposits are thin or irregular. It has two forms.
Asset allowance converts liquid assets into income by dividing them over 36, 60 or 84 months. The divisor is 36 when the file is supplemental and debt-to-income before the asset income is at or below 60%. It is 60 when that pre-asset ratio is above 60%. It is 84 when the asset path stands alone or any loan exceeds $3,500,000. The 60% test only picks the divisor. The ratio with the asset income counted must still fit the 50% ceiling. This path covers primary and second homes only, to 80% LTV. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Assets-only uses no debt-to-income test. U.S. liquid assets must equal the loan amount plus closing costs plus sixty months of any net loss on other residential property.
Retirement accounts count at 70%, or 80% for borrowers age 59.5 and older. Business funds, gifts, trusts other than a revocable living trust, unvested stock and cryptocurrency never count. This is the entity trap. Money in an LLC can support deposit income, but it cannot count as liquid assets.
What Changes in Texas?
Texas changes less than most people expect. The loan mechanics above apply as written. The state matters for one situation, a cash-out against a homestead.
The Texas Constitution protects a homestead from forced sale. Under Article XVI, Section 50, home equity lending falls into three categories: cash-out refinancing, home equity loans and HELOCs, as the Texas Real Estate Research Center at Texas A&M explains. A Section 50(a)(6) loan through the network takes a 5-point reduction in LTV and stops at $3,000,000 on the portfolio program. A rate-and-term refinance or a purchase does not carry those limits. A rental is not a homestead, so it follows investment-property rules instead.
On a primary residence, federal ability-to-repay rules also apply, which is why the file is documented fully. The CFPB’s compliance guide lists what a lender must weigh and verify, including income or assets, other debts and credit history. Non-QM changes how income is calculated. It does not remove the duty to confirm repayment ability.
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. The complete DSCR loans guide covers how that works.
Texas also has no state income tax, but that does not change how deposits are read. Underwriting uses the same statements and the same ratios anywhere the programs are available. Consumer lending through Lendmire is licensed in 16 states, including Texas.
Where the General Rule Breaks
Rules of thumb fail at the edges. These are the cases that surprise borrowers.
- Entity money. Business deposits can support income on the statement path. Business funds never count as assets on the asset path.
- Falling or lumpy deposits. Averaging drags income down. A business that is winding down or being sold carries a weaker file than the same business in growth.
- Thin business history. A short track record can be offset by assets and strong credit, at the lender’s discretion.
- Thin ownership. Under 25% of a business means those statements do not qualify.
- Cash-out and reserves. On large files, cash-out proceeds cannot satisfy reserves.
- Citizenship and property type. The super-jumbo overlays above exclude non-permanent residents, rural property and parcels over ten acres.
- Above $4,000,000. The leverage figures at that size are reviewed case by case before submission, and a published cell is a starting point only.
- Property types. Warrantable condos run to 85% and non-warrantable to 80%. Condotels are 75% on a purchase and 65% on a cash-out, or 50% on a cash-out under the bank program. Two- to four-unit properties run to 85%, second homes are one unit only, and rural property runs to 80% on ten acres or less and never above $3,000,000.
Which Path Fits: Bank Statements, Assets, or Rental Income?
The decision turns on what the borrower can document most cleanly. A bank statement loan tests the borrower. A DSCR loan tests the property. For each added rental, a bank statement mortgage stacks another payment onto personal debt-to-income. A DSCR loan judges each rental by its own rent.
| Situation | Usually fits | Why |
|---|---|---|
| Strong, steady deposits | Bank statements | Income is easy to prove |
| Big balance sheet, thin deposits | Asset path | Wealth supports the file |
| Stable rental that covers its own payment | DSCR | Property rent drives the file |
| Declining deposits, strong assets | Asset path | Averaging hurts deposits |
| Owner-occupied home plus rentals | Mixed | Residence on statements, rentals on DSCR |
A common pattern puts the primary residence on a bank statement or asset program and each rental on a DSCR loan. It is a pattern, not a rule. Programs below 1.00 coverage are available through select lenders in the network, but leverage and terms adjust when coverage falls short.
What Does the Process and Document List Look Like?
Preparation decides how smoothly a file moves. Gather the items below before applying.
- Every page of 12 or 24 consecutive months of statements for each account in use.
- Written explanations for large or unusual deposits.
- Proof of business ownership, and an accountant letter if you want a custom expense ratio.
- Asset statements for the asset path, with retirement accounts shown separately.
- A schedule of other financed properties, which affects reserves.
- A purchase contract or the current mortgage statement for a refinance.
A broker such as Lendmire compares several wholesale programs against the file before submission. Pricing, leverage and overlays differ from one program to the next, so the same file can land very differently depending on where it is placed.
Costs, Tradeoffs and When This Is the Wrong Loan
Non-QM loans generally cost more than conventional financing, and large balances carry tighter leverage than small ones. The trade is flexibility. A borrower whose traditional personal-income documentation shows strong income, with stable W-2 earnings, may be better served by a conventional or agency jumbo loan.
This loan is also the wrong tool for a rental that stands on its own rent. It makes sense for a primary or second home, or for a business-purpose purchase where the borrower’s cash flow carries the file. For a stable rental, a property-based loan keeps personal debt-to-income clear for the next purchase.
Tax treatment can depend on how the funds are used and how the property is held; borrowers should keep clear records and speak with a qualified tax professional before relying on any deduction.
Key Terms Defined
Non-QM: A mortgage that does not follow standard Qualified Mortgage rules but still verifies repayment ability.
Expense ratio: The share of business deposits treated as operating cost, which lowers qualifying income.
DTI (debt-to-income): Monthly debts, including the new mortgage, divided by qualifying monthly income.
Reserves: Liquid funds left after closing to cover mortgage payments, counted in months.
Asset allowance: A method that converts liquid assets into monthly income over 36, 60 or 84 months.
50(a)(6): The Texas constitutional provision that governs home equity loans on a homestead.
Next Steps
Reach the team at 828-256-2183 or request a quote.
Frequently Asked Questions
Can I use a bank statement loan to buy a rental in Texas?
Often yes, through select wholesale programs, subject to full underwriting. Investment property has its own leverage ladder, and the ceiling is lower than on a primary residence. For a rental that covers its own payment, a DSCR loan may leave your personal debt-to-income cleaner.
Do Texas home equity rules apply to every cash-out?
No. The constitutional home equity provisions apply to a homestead. A Section 50(a)(6) loan takes a 5-point LTV reduction and stops at $3,000,000 on the portfolio program. A cash-out on a rental follows the investment-property ladder.
What if my business deposits are uneven?
Averaging pulls qualifying income down, so a weak month hurts more than a strong one helps. An accountant-supplied expense ratio, a longer or shorter statement window, or the asset path may improve the file. Which fits depends on the numbers and the lender’s guidelines.
Can money in my LLC count toward the asset path?
No. Business funds are excluded from the asset path, so money in an LLC does not count toward it. Deposits in a business account can still support income on the statement path, subject to the 25% ownership test.
How much can I borrow, and at what leverage?
Loan amounts run from $300,000 to $30,000,000 through two programs. A primary-residence purchase can reach 90% up to $1,000,000, and leverage steps down as the loan grows. Above $4,000,000 each file is reviewed case by case before submission.
For current guidelines and terms, see Lendmire’s super jumbo bank statement loan programs page.
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 broker that arranges bank statement, P&L-only, 1099-only and asset-based home financing in 16 states through wholesale lenders, on primary residences, second homes and investment properties. Every option is subject to the lender’s guidelines and full underwriting. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Scotsman Guide: Rev Up the Engine for Non-QM Lending
2. Texas Real Estate Research Center at Texas A&M: What to Know About Home Equity Loans in Texas
3. CFPB Ability-to-Repay and Qualified Mortgage 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: Can Professional Athletes Get a Bank Statement Mortgage? · How a Bank Statement Jumbo Loan Works in Whitefish · How a La Jolla Bank Statement Jumbo Loan Works
Guides: Super Jumbo Bank Statement Loans in Texas
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.