Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
The Quick Read: A 700 score is usually enough to be underwritten on a large rental refinance, but it rarely unlocks the top leverage at the biggest balances. The lender tests the property’s rent against the full new payment, sizes the loan by balance band, then checks credit, reserves and appraisals. Each step can cap the next, subject to underwriting.
- The cash-out ceiling falls as the loan grows: 75% to $1,000,000, 70% to $1,500,000, 60% to $3,000,000, and none above $3,000,000.
- A 700 score fits the $1,000,000 to $1,500,000 cash-out cell at 70%. Above $1,500,000, the top cash-out cell needs 720.
- Coverage of 1.00 earns full leverage. Lower coverage runs through select programs, with LTV and terms adjusted, subject to underwriting.
- Two appraisals apply above $2,000,000. Cash-out proceeds never count toward reserves.
Here is the plain version. A super jumbo DSCR cash-out refinance asks one question first: does the rent cover the new, larger debt? Your tax returns matter far less than the property does. Your credit score then decides which leverage cell you can use inside the loan-size band.
What Is a Super Jumbo DSCR Cash-Out Refinance?
It is a business-purpose loan on a rental property, sized well above ordinary jumbo balances. You pay off the existing mortgage and pull out part of the equity as cash. The loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines.
“Super jumbo” has no official definition. Each lender draws its own line. In the programs Lendmire places files with, the standard DSCR program stops at $3,000,000, and a larger-balance ladder carries qualified investors up to $10,000,000. Lendmire is a mortgage broker, so it arranges these loans through a wholesale network of investor lenders. It does not lend.
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. For the full picture, see the complete DSCR loans guide.
Key Terms Defined
DSCR (debt service coverage ratio): monthly rent divided by the full monthly debt payment, including principal, interest, taxes, insurance and association dues.
Super jumbo: a loan balance above ordinary jumbo size, with the exact line set by each lender.
Cash-out refinance: a new loan larger than the old payoff, with the difference paid to you.
LTV (loan-to-value): the loan amount as a percentage of the property’s appraised value.
Reserves: liquid funds, counted in months of payments, that you hold after closing.
Seasoning: how long you have owned the property before a lender honors its current appraised value.
How Does Underwriting Work, Step by Step?
Underwriting runs in a set order, and each stage can cap the next. Skipping ahead is the most common way borrowers misjudge a file. Here is the sequence across most programs in the network.
1. Intake and purpose. The lender confirms the property is a rental and the loan is for business purposes. You typically sign a statement of purpose. If the cash-out would fund personal spending, the file may not fit this product.
2. Collateral and rent. The appraiser values the home and reports market rent. Appraisers commonly use forms such as the 1007 rent schedule for single-family homes and the 1025 report for two-to-four-unit properties, as named in the Fannie Mae Selling Guide. Those are only form names. DSCR loans are not agency products. Lenders often use the lower of the in-place lease and the appraiser’s market rent.
3. The coverage test at the new balance. Rent is divided by the payment on the new, larger loan. A property that passed at purchase can miss the number after a cash-out, because the debt grew. The cleanest fix is asking for less cash.
4. Leverage by loan band. The lender reads the band for the loan amount, not the purchase price. Multiply price and leverage first, then find the band that loan lands in.
5. Credit. Your score decides which cell you can use. The program floor is 660 on loans to $3,000,000 and 700 above it. Above $3,000,000, files also need 0x30x24 housing history, 48-month seasoning on credit events, and citizen or permanent-resident status. Rural property is excluded there.
6. Reserves. Programs generally want 6 months of payments on the subject property, and 12 for first-time investors. Cash-out never satisfies this.
7. Seasoning, title and payoff. The lender reviews how long you have held title, the payoff statement, and how the property is vested. Title in an LLC is welcome, subject to program terms, though layered entities are not.
What can go wrong: a stage that looks fine alone can fail in sequence. A good ratio does not rescue a leverage cap.
Where Does a 700 Credit Score Fit?
Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
A 700 score is a solid pass at large size, but it is not the top tier. It clears the 700 floor above $3,000,000, though cash-out is not available there anyway. It also clears the rule that bars cash-out for scores of 680 and below above $1,500,000.
Here is the leverage ladder at coverage of 1.00 or higher. Every figure is a ceiling through select wholesale programs, subject to underwriting.
| Loan band | Purchase | Rate-and-term | Cash-out |
|---|---|---|---|
| $150K–$1M | 80% | 80% | 75% |
| $1M–$1.5M | 75% | 75% | 70% |
| $1.5M–$2M | 75% | 75% | 60% |
| $2M–$3M | 75% | 75% | 60% |
| $3M–$4M | 65% | 65% | — |
| $4M–$6M | 60% (on review) | 60% (on review) | — |
| $6M–$10M | 60% (on review) | 60% (on review) | — |
The scores matter, though. The top cash-out cell to $1,000,000 needs 660 or better. The 70% cell from $1,000,000 to $1,500,000 needs 700. The 60% cells from $1,500,000 to $3,000,000 need 720. So a 700 borrower sits exactly on the line in the middle band. Below $1,500,000, you get the top cell. Between $1,500,000 and $3,000,000, you land one cell lower than a 720 borrower.
Above $4,000,000, every request is reviewed case by case before submission. That applies to purchase or rate-and-term only, since cash-out is unavailable at those sizes.
How Does the Ratio Work on a Cash-Out?
Coverage of 1.00 earns full leverage. That means rent covers the whole payment, taxes and insurance included. Coverage from 0.75 to 0.99 is a real path through select programs to $2,000,000, but LTV and terms adjust, subject to underwriting.
Run the numbers on a luxury duplex valued at $2,500,000. At 60% cash-out LTV, the new loan sits in the $1,500,000 to $2,000,000 band. Say rent against the old payment looked like 1.35x. The new loan is much bigger, so coverage on the new payment might land near 1.10x. It still clears 1.00, but a thin margin matters. A rent drop or insurance jump could push it under. Treat this as a modeled assumption, not a quote. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Interest-only changes the test. Some programs offer a 120-month interest-only period on 30- and 40-year terms, up to 75% LTV, with coverage of 0.75 or better. The lender reviews your file on interest, taxes and insurance only. That can lift coverage on a large balance, though it raises the principal you owe later. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Commercial lenders often talk about a 1.25x minimum. That is commercial convention, not how residential rental programs in the network work.
What Happens With Appraisals and Value at This Size?
Above $2,000,000, two appraisals are required. Luxury comps are thin, and a single opinion carries too much risk. When the two differ, lenders generally size off the lower or a reconciled figure, subject to underwriting.
A low appraisal shrinks the loan. Your 60% cell now applies to a smaller number, and the proceeds fall with it. Plan for that gap before you promise cash to anyone.
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.
Cash-Out Proceeds and the Reserves Rule
Proceeds are unlimited at or below 60% LTV and capped at $1,500,000 above 60%. No cash-out is available above $3,000,000. Many investors miss the reserve trap: cash you pull out cannot be counted as your reserves. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
| Source of funds | Counts toward reserves? |
|---|---|
| Savings or brokerage balances | Generally yes |
| Cash-out proceeds from this loan | No |
| Equity in other properties | No |
Reserves are 6 months on the subject only. There are no extra reserves for other financed properties, and you can have up to 20 financed properties.
Worked Example: One File, Two Credit Scores
Consider a rental valued at $2,400,000 that an investor wants to refinance with cash out. Assume a 1.15x coverage ratio on a modeled basis.
At 60% LTV, the loan lands in the $1,000,000 to $1,500,000 band. A 720 borrower uses the 60% cell, and a 700 borrower reads the same band and can also qualify at that leverage, subject to underwriting. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
A 680 borrower faces a harder rule. Above $1,500,000, credit of 680 and below gets no cash-out at all. That borrower would resize below $1,500,000 or switch to rate-and-term.
Reserves stay at 6 months of payments on the subject for all three. A second appraisal is triggered only when the loan itself exceeds $2,000,000; here the loan is under that line, so only one appraisal is needed and the loan band, not the property value, governs.
When Does the Rule Break?
These are the named edge cases where the general ladder bends:
- Coverage under 1.00. Select programs reach down to $2,000,000 at reduced leverage. LTV and terms adjust, subject to underwriting.
- No-ratio. Through a handful of lenders in the network, no-ratio reaches $2,000,000 with a seven-year clean housing history and 0x30x24, subject to underwriting. No minimum ratio is published for it.
- Short-term rentals. They need coverage of 1.00 or higher, loans to $2,000,000, and experienced investors only. Income counts at 80% of gross, using twelve months of operating history on a refinance.
- Condos. Warrantable and non-warrantable condos are eligible. Non-warrantable ones go to 75% and $1,500,000.
- Rural and acreage. Rural collateral reaches 75% only on loans at or below $3,000,000. Above $3,000,000: no rural property, and no more than ten acres on a non-rural one.
- Bridge payoffs and entity title. Whether a recent bridge payoff counts as rate-and-term varies by program, and title held in transit can complicate seasoning.
Is the Loan Really Business-Purpose?
Yes, but the purpose of the proceeds is what counts, not just the label “investment.” Federal rules treat credit to acquire, improve or maintain non-owner-occupied rental property as business purpose, per the CFPB’s Regulation Z § 1026.3. The related 12 CFR 1024.5 text at Cornell LII carries the same exemption for business-purpose loans. Keep clear records of how the cash is used.
When the File Doesn’t Fit
A decision table helps when a cap blocks your plan.
| Problem | Typical fix |
|---|---|
| Coverage too thin | Ask for less cash or consider interest-only |
| Loan above $3M, cash-out wanted | Rate-and-term, or stage debt across properties |
| Score 680 or below, loan above $1.5M | Resize below $1.5M |
| Low appraisal | Resize to the lower value |
Brokers see these constraints across many lenders. Some lenders in the network handle certain property types or sizes better than others, and the best program for your situation depends on property type, credit, leverage need and documents.
Pre-Application Checklist
- Entity documents and vesting, with no layered entities
- Current lease or rent history, plus insurance and tax details
- Payoff statement and proof of ownership length
- Liquid reserves, 6 months on the subject, held outside the proceeds
- Credit report for the guarantor, with housing history clean
- A written statement of how the cash will be used
Lendmire’s piece Can You Get Approved for a Super Jumbo DSCR Cash-Out Refinance With a 700 Credit Score? covers the approval question in more depth. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Common Mistakes
- Testing rent against the old payment instead of the new one.
- Counting cash-out proceeds as reserves.
- Reading the leverage band by purchase price rather than loan amount.
- Assuming mid-size terms carry up to the top balances.
- Expecting the 80% purchase cap to apply above $1,000,000. It does not.
Lenders also look past the property. The guarantor’s credit, liquidity and entity all get reviewed, even though rent leads the file. Market data backs up why programs like this exist: Scotsman Guide reports the average non-QM borrower had a 776 FICO, so these are not subprime borrowers. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Frequently Asked Questions
Is a 700 credit score enough for a super jumbo cash-out?
Usually yes on loans to $1,500,000, where 700 meets the top cell at 70% from $1,000,000 to $1,500,000. Above $1,500,000, the best cash-out cell needs 720, so a 700 borrower may land on a lower cell. No cash-out exists above $3,000,000. All of it is subject to underwriting.
Do cash-out proceeds count as reserves?
No. Reserves must come from your own liquid funds, 6 months of payments on the subject property. Proceeds from the refinance are excluded in every program in the network.
Does the coverage ratio change at super jumbo size?
The formula stays the same, but the new balance is larger, so the payment is larger. A 1.00 earns full leverage. Coverage from 0.75 to 0.99 works through select programs to $2,000,000, with LTV and terms adjusting, subject to underwriting.
What happens if the appraisal comes in low?
The loan resizes to the lower value, so proceeds shrink. Above $2,000,000, two appraisals apply, and lenders generally rely on the lower or reconciled figure. You can request a smaller loan, or move to rate-and-term.
Can an LLC hold title?
Entity vesting is welcome, subject to program terms, though layered entities are not. The guarantor’s credit is still reviewed.
If you are buying or refinancing a high-balance rental property and want to see how the numbers work, Lendmire can help you compare super jumbo DSCR loan options based on the property income, the loan balance, credit profile, leverage, and investor goals. Call 828-256-2183 or request a quote. Business-purpose financing is arranged across 40 states plus Washington, D.C. Nothing here is a commitment to lend.
For how equity extraction works on an investment 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 brokerage specializing in DSCR investor loans, helping arrange financing across 41 markets, including Washington, D.C., through wholesale and investor-lending channels. The model centers on property-level rental income reviewed by the lender rather than W-2 documentation, subject to lender guidelines, suiting entity-owned and multi-property investors. Lendmire holds Scotsman Guide Top Mortgage Workplace recognition for 2025 and 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. Fannie Mae Selling Guide, B4-1.2-01
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: Does a Super Jumbo DSCR Cash-Out Refinance Make Sense Before Selling? · Can You Get Approved for a Super Jumbo DSCR Cash-Out Refinance on Ten Rentals? · Super Jumbo DSCR Cash-Out Refinance Requirements Using an Automated Valuation
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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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.