The Quick Read: Underwriters review your file on your deposits instead of your tax returns, then cap the cash you can pull by the lowest of four limits: the leverage ceiling for your loan size, any cash-in-hand cap, the payoff on your old loan, and the reserve test. The 30-year fixed is the default structure, and it keeps the debt-to-income math simple. Every figure here is a ceiling through select wholesale programs, subject to full underwriting.
- Income comes from 12 or 24 months of consecutive statements, after an expense ratio.
- Leverage on a cash-out steps down as the loan grows, and every file above $4,000,000 is reviewed case by case.
- Reserves must exist apart from your cash-out proceeds, and above the super-jumbo line proceeds cannot count toward them.
- The lowest limit controls. Whichever one binds first sets your check.
The order matters. Most surprises come from skipping a step in your own head before the lender runs it.
Key Terms Defined
Super jumbo: a market label for very large loans. No law draws the line. Each lender sets its own threshold, and across Lendmire’s wholesale network the extra overlays begin above $3,500,000 on a primary residence and $3,000,000 on a second home or investment property.
Bank statement loan: a mortgage that is reviewed around deposits in your bank accounts instead of tax returns.
Expense ratio: the share of business deposits the lender assumes went to running the business. Only what is left counts as income.
Cash-out refinance: a new, larger loan that pays off the old one and hands you the difference.
Cash-in-hand cap: a ceiling on the dollars you receive at closing, separate from the leverage limit.
Reserves: liquid money you must still hold after closing, measured in months of the housing obligation.
Seasoning: the waiting period after a credit event before a lender will look past it.
What Does “Super Jumbo” Actually Mean?
It means a loan too big for the standard conforming box, and nothing more precise than that. The baseline conforming limit for a one-unit home is $832,750, and the high-cost ceiling is $1,249,125, according to Orrick’s summary of the annual limit announcement. Anything above is jumbo. Where jumbo turns “super” is the lender’s call.
For you, that matters in one way. Bigger loans pick up stricter overlays. A broker sees this across many programs: the larger the balance, the more the lender wants to see in credit, liquidity and equity.
Two wholesale programs carry most of these files. The portfolio non-QM program covers loans from $300,000 to $6,000,000. The bank portfolio program carries twelve-month-statement files to $30,000,000 on its own ladder, which begins above $4,000,000 and overlaps the portfolio program up to $6,000,000. Above $6,000,000 the bank program stands alone. Both come through a broker that shops multiple wholesale lenders, so the program that fits depends on your loan size, occupancy and documents.
Step 1: Pick the Documentation Lane
Underwriting starts with a choice you make, not a number the lender finds. Documentation type is separate from loan purpose. A cash-out can run on bank statements, on a property’s rent, or on your assets.
| Lane | What gets tested | Fits best when |
|---|---|---|
| Bank statements | Your deposits | Tax returns understate cash flow |
| Property cash flow (DSCR) | The rental’s income | Rent covers the obligation |
| Asset-based | Your liquid assets | Income is lumpy or thin |
The right lane is the one where your strongest evidence does the work. A founder with heavy write-offs and big deposits points to statements. An investor with a well-leased building may do better on the property itself. Lendmire’s complete DSCR loans guide covers the property-based lane in full.
Step 2: Build Income From Deposits
The underwriter builds qualifying income in four moves. Collect, scrub, subtract, average.
Collect. You supply 12 or 24 consecutive months of personal or business statements, and the bank program uses 12. Trade reporting describes bank statement programs as averaging 12 to 24 months of deposits. The statements must be consecutive. A transaction history printout never substitutes. Business statements require at least 25% ownership.
Scrub. The underwriter removes what is not income and questions what looks unusual. Here is how deposits typically fall.
| Deposit type | Treatment | Why |
|---|---|---|
| Client or customer payments | Counted | Real business revenue |
| Transfers from your business to your personal account | Counted in full | Documented owner pay |
| Moves between your own accounts | Removed | Same money counted twice |
| Large one-off deposit | Conditioned | Needs a paper trail |
| Loan proceeds, refunds | Removed | Not earned income |
A missing bank statement can reset the review, so gaps matter here.
Subtract. On business statements, the lender applies an expense ratio. Typical fixed ratios are 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. A profit-and-loss method is also available, capped at 80%.
Average. Eligible deposits, less the expense ratio, divide by the number of statement months. That is your monthly qualifying income.
Run the logic on a modeled business account. Say a service business with no employees uses the 20% ratio. Eighty cents of every eligible deposit dollar counts. Switch to the 50% ratio and only half counts. Same deposits, very different income. That gap is why a CPA letter can change the whole file.
Step 3: Test Credit, Housing History and Debt
The portfolio program has a 660 credit floor, the bank program keeps 680, and the portfolio program moves to 700 above the super-jumbo line. Debt-to-income can run to 50%, subject to underwriting. Housing history above the line is 0x30x24, meaning no 30-day late in the last 24 months.
Be careful reading credit by band. The score listed for a band is what its top leverage needs. It is not a floor. A lower score drops you to a lower leverage cell in the same band, so a 700 does not get the 760 cell.
Where does the 30-year fixed fit? It is a fully amortizing structure, so the lender reviews your file on the full obligation with no interest-only period and no reset. Interest-only and adjustable structures exist as separate options. Those are different files. They never raise a cash-out ceiling.
Scotsman Guide puts the average non-QM borrower FICO at 776. Alt-doc is not the same as weak credit. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Step 4: Size the Cash-Out (The Lowest Limit Wins)
This is the step that decides your check. Four limits apply, and the lowest controls: the leverage ceiling, any cash-in-hand cap, the payoff on the old loan, and the reserve test.
Leverage. On a cash-out, ceilings step down with loan size. On a primary residence through select wholesale programs, the top cash-out cell runs 80% up to $1,500,000. It falls to 75% from there to $2,000,000, then 70% to $3,000,000, then 65% to $4,000,000. The top cell needs a 680 score through $1,000,000, 700 to $1,500,000, 720 from there through $3,500,000, and 760 from $3,500,000 to $4,000,000.
Above $4,000,000, the bank portfolio program takes over. On review, a primary-residence cash-out runs 60% from $4,000,000 to $5,000,000, then 55% to $10,000,000 and 50% beyond. These are loan amounts, not purchase prices. All of it is case by case before submission.
Investment property has its own ladder, and so does a second home. On an investment property, a cash-out tops out at 75% for loan amounts up to $2,000,000, then steps down in stages to 55% for loan amounts between $3,000,000 and $4,000,000, with the high end on review. Never subtract from the primary figure to guess. Read the ladder for your occupancy.
Cash-in-hand cap. Cash-out is unlimited at or below 60% LTV. Above 60%, the portfolio program caps cash in hand at $1,500,000. The bank program publishes no cap. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Payoff and costs. Your net is the new loan minus the old payoff, any liens and closing costs. Title history and a use-of-proceeds trail go in the file.
Reserves. Covered next.
Here is a worked case in percentages. Say a primary residence appraises at 100% of value and the old payoff is 40% of value. You ask for 60% LTV. That sits at the proceeds-unlimited line, below any cap. Before costs, you net about 20% of value. If you asked for more than 60%, the cash-in-hand cap could bind before leverage does. Honest toss-up on the right ask: stay at 60% for simplicity, or go higher and accept the cap. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Step 5: Prove Reserves Separately
Reserves run 3 months through $500,000, 6 months through $1,500,000, and 9 months above that. Each additional financed property adds 2 months, up to a 12-month maximum. First-time investors need 12.
Here is the catch. Above $3,500,000 on a primary residence, and above $3,000,000 on a second home or investment property, cash-out proceeds cannot satisfy reserves. You need that liquidity before the closing table. Plan it as its own pile.
Asset paths follow their own logic. An asset allowance divides liquid assets by 36, 60 or 84 months to create income. The 84-month divisor applies to standalone use or any loan above $3,500,000. Assets-only needs U.S. liquid assets equal to the loan plus closing costs. Retirement accounts count at 70%, or 80% at age 59½ and up. Business funds, gifts, cryptocurrency and unvested stock never count.
Step 6: Property, Appraisal and the Super-Jumbo Overlays
The appraisal sets the value that every percentage multiplies against. Property type moves the ceiling. Warrantable condos go to 85% and non-warrantable to 80%. Two-to-four-unit properties go to 85%, and second homes are one-unit only. Rural property tops out at 80% on ten acres or less and never above $3,000,000.
Above the super-jumbo line, overlays stack up. They include U.S. citizenship or permanent residency, no non-occupant co-borrowers, no rural property, a ten-acre maximum, and 48-month seasoning on any credit event. Texas 50(a)(6) home-equity loans take a 5-point leverage reduction and stop at $3,000,000 on the portfolio program.
Where the General Rule Breaks
Rules of thumb fail at the edges. These are the ones that come up most.
A business under 24 months. Underwriters may weigh substantial liquid assets and credit quality alongside a shorter history. Lendmire’s piece on super jumbo requirements after one year self-employed walks through that case.
A heavy expense ratio. A high ratio can push statement income below what the rent supports. Then a property-based path can beat the statement path. A CPA letter can sometimes flip it back.
Big deposits. A one-time inflow does not automatically sink a file. It needs a documented source.
Business purpose versus personal purpose. Loans for investment property are designed as business-purpose loans, so they are reviewed differently from a standard owner-occupied mortgage. The federal rule turns on what the loan is for, as the CFPB’s exempt-transactions rule and commentary lay out for non-owner-occupied rental property. Cash pulled for personal use can change the analysis. Loans to an LLC are reviewed subject to lender program eligibility.
State overlays. Some states restrict certain structures, cash-out terms or occupancy types on top of program guidelines.
Anything above $4,000,000. Case by case, every time.
Bank statement loans are still underwritten. Often more closely than a standard file, since a person reads your deposits.
What the Investor Decision Looks Like
Run the choice in this order. First, which lane carries your strongest evidence: deposits, property rent, or assets? Second, what loan size do you actually need, and what does your occupancy’s ladder allow? Third, does your cash-out sit at or below 60% LTV, or does the cap come into play? Fourth, do your reserves clear without the proceeds? Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Here is how it goes wrong. An owner sizes the cash-out to the leverage ceiling, then learns the reserve test needs liquidity they planned to take from the same proceeds. Plan the reserves first.
Non-QM is mainstream enough to plan around. Optimal Blue data reported by Scotsman Guide shows bank statement loans making up a meaningful share of non-QM activity in one recent month. The same trade press notes pricing and secondary execution can get choppy, so programs change. Confirm current guidelines before you build a plan around any figure.
Leverage and documentation are separate levers. A strong score does not unlock the maximum cash-out by itself. Size, occupancy and the proceeds cap still apply. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Frequently Asked Questions
Is this a no-doc loan?
No. It is reviewed on documented income under the applicable program, subject to lender guidelines. You supply consecutive statements, and an underwriter reviews every deposit. The file also needs title history, a payoff and a use-of-proceeds trail.
Does higher income mean a bigger check?
Not directly. Income affects whether you qualify and your debt-to-income. The check itself is the lowest of leverage, any cash-in-hand cap, the payoff and the reserve test. Above 60% LTV on the portfolio program, the cash-in-hand cap can bind first. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Can proceeds count as reserves?
Not above the super-jumbo line. That line is $3,500,000 on a primary residence and $3,000,000 on a second home or investment property. Below it, reserves still need to be real and verifiable. Keep that liquidity separate from your proceeds either way.
Can I choose my expense ratio?
Partly. Fixed ratios of 20%, 40% or 50% depend on the type and size of the business. An accountant-provided ratio can replace the fixed one, and a profit-and-loss method is capped at 80%. The lender decides what it accepts.
Does the 30-year fixed change qualification?
It simplifies it. A fully amortizing fixed term means no interest-only period and no reset, so the debt-to-income test runs on the full obligation. Interest-only and adjustable structures are separate options with their own limits.
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 mortgage broker, not a lender, and arranges consumer financing through select wholesale programs in AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA and WA. Nothing here is a commitment to lend. Programs change, and every file is underwritten individually.
For the mechanics of pulling equity out of a rental property, see Lendmire’s guide to cash-out refinance on an investment property.
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 licensed for consumer lending in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages for self-employed and high-net-worth borrowers are arranged through wholesale lenders on primary residences, second homes and investment properties; every file is underwritten by the lender under its program guidelines.
Scotsman Guide named Lendmire a Top Mortgage Workplace in 2026.
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Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. Orrick — conforming loan limit summary
2. Scotsman Guide — Which groups are driving non-QM lending
4. Scotsman Guide — Non-QM momentum cools, bank statement volumes strengthen
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 Commissioned Real Estate Agents Get a Super Jumbo Bank Statement Cash-Out Refinance? · Super Jumbo Bank Statement Cash-Out Refinance Requirements to Buy Out a Business Partner · Super Jumbo Bank Statement Cash-Out Refinance Requirements After One Year Self-Employed
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.