The Quick Read: This loan lets a self-employed buyer qualify for a mortgage above the conforming limit using 12 or 24 months of bank deposits instead of traditional personal-income documentation, with the lender trimming those deposits by an expense ratio and then testing credit, debt, reserves, and the property through select wholesale programs. Miami is the example here, but the mechanics hold in any market.
- Qualifying income is eligible deposits divided by the statement months, after an expense ratio.
- On a primary residence purchase, leverage ceilings step down from 90% at $1,000,000 and under to 75% at $3,000,000 to $4,000,000, and above $4,000,000 every file is reviewed case by case.
- Credit floors vary by scenario on the portfolio program and rise as the loan grows, with debt-to-income up to 50%.
- Reserves run 3, 6, or 9 months depending on loan size.
- All figures are ceilings through select wholesale programs, subject to full underwriting.
A Miami founder, physician, attorney, or investor often has real wealth and a tax return that does not show it. Write-offs, depreciation, and reinvested profit push taxable income down. The bank account tells the truer story, and this loan was built to read it.
What Makes a Loan “Jumbo” in Miami?
A loan is jumbo when its amount exceeds the conforming limit. Above that limit, the loan is a non-agency product that each investor underwrites under its own guidelines.
Per Orrick’s summary of the announcement, the current one-unit limit is $832,750 in most of the country. The ceiling in the highest-cost areas is $1,249,125. Miami-Dade has historically sat at the national baseline rather than the high-cost ceiling, so confirm the county figure on the agency’s county list before you plan around it.
Two details trip people up. First, the loan amount decides jumbo status, not the price. A $1,000,000 purchase with a large down payment can land under the limit. Second, “jumbo” says nothing about how income is documented. A jumbo loan can be documented with traditional personal-income documentation, and a bank statement loan can sit under the limit. The two labels are independent.
Why Do Miami Buyers Run Into the Tax-Return Wall?
Miami purchases often start above the conforming line, and many buyers are self-employed. Their returns show income after expenses, depreciation, and retained earnings. A conventional underwriter reads that net figure and stops.
Picture a business owner whose company deposits large sums into the account every month, yet whose return shows a modest profit. Nothing is wrong with the return. It simply measures taxable income, not cash flow. A bank statement program measures the cash flow and then applies its own expense haircut, so the borrower is still tested on a cost-adjusted number.
How Do Deposits Become Qualifying Income?
The lender totals eligible deposits across the statement period, divides by the number of months, and applies an expense ratio. The result is monthly qualifying income. Across our wholesale network, the steps run in this order:
1. Choose the statement set. Programs use 12 or 24 consecutive months of personal or business statements. The bank portfolio program uses 12. Statements must be consecutive, and a transaction history never substitutes for them.
2. Strip ineligible deposits. Transfers between your own accounts, refunds, gifts, loan proceeds, and unexplained large deposits come out before any averaging.
3. Apply the expense ratio if you use business statements. Personal statements generally skip it.
4. Divide by the months in the period.
5. Run the rest of the file: credit, debt-to-income, reserves, and the property.
Business statements require at least 25% ownership of the business. The expense ratio comes from the business profile. These are the fixed ratios we see across the network:
| Business profile | Typical expense ratio |
|---|---|
| Service business, no employees | Lowest fixed ratio |
| 1 to 5 employees | Middle fixed ratio |
| 6+ employees or any product business | Highest fixed ratio |
| Accountant-provided ratio | Set by the letter |
An accountant’s letter can replace the fixed ratio when the bookkeeping is credible. Small changes in that ratio move qualifying income, debt-to-income, and often pricing, which is why the letter matters. Lendmire’s piece How to Write a CPA Letter for a Super Jumbo Bank Statement Loan covers what the letter should say.
Here is how the ratio works. Index your average monthly eligible deposits at 100. These are modeled figures for illustration, not market data.
| Expense ratio | Qualifying income (index) |
|---|---|
| 20% | 80 |
| 40% | 60 |
| 50% | 50 |
Same deposits, very different outcomes. A service consultant with no staff keeps four-fifths of the average. A product business with a large team keeps half.
Two other paths are worth knowing. A profit-and-loss-only method exists with its own leverage cap. Transfers from your own business into your personal account count at 100% on the programs we place files with, so a borrower who pays himself or herself from the business can use personal statements and avoid the expense ratio. Programs treat this differently, so it is worth comparing.
What Counts and What Gets Stripped?
Deposits that reflect real, repeatable earnings count. Deposits that just move money around do not. The table shows how underwriters usually sort them.
| Deposit type | Usual treatment |
|---|---|
| Client or customer payments | Counted |
| Owner transfers from your business | Counted at 100% on the programs described here |
| Transfers between your own accounts | Removed |
| Refunds and reimbursements | Removed |
| Gifts and loan proceeds | Removed |
| Large one-off deposits | Need a written explanation or come out |
Clean accounts are the biggest lever you control. When personal and business money share an account, underwriters either apply the harshest expense treatment or ask for cleaner statements. Months of transfers back and forth also shrink the eligible total. Separate the accounts well before you apply.
How Much Can You Borrow, and at What Leverage?
Size and leverage move in opposite directions. Loan amounts run from $300,000 to $30,000,000 through two wholesale programs. A portfolio non-QM bank-statement program carries files to $6,000,000.
The ceilings below are for purchases, through select wholesale programs, subject to full underwriting.
| Loan size | Primary residence | Investment property |
|---|---|---|
| Up to $1,000,000 | 90% | 85% |
| $1,000,000 to $2,000,000 | 85% | 80% |
| $2,000,000 to $2,500,000 | 80% | 80% |
| $2,500,000 to $3,000,000 | 80% | 75% |
| $3,000,000 to $4,000,000 | 75% | 60% |
Second homes run about five points below the primary-residence figures at most sizes. Credit requirements climb alongside size, from 680 and up at the low end to 720 and up in the middle bands, and 760 on a primary residence between $3,500,000 and $4,000,000.
Above $4,000,000 everything is reviewed case by case before submission. On a primary residence purchase, the bank program’s ladder runs roughly 65% to $5,000,000, 60% to $10,000,000, and 55% to $30,000,000, each on review rather than as a flat ceiling. Never read a figure at that size as an offer.
Cash-out has its own limits. On the portfolio program, proceeds are unlimited at or below 60% loan-to-value (LTV, the loan as a share of the property’s value). Above 60%, cash in hand is capped at $1,500,000. On a primary residence the cash-out ceiling is 80% at the smallest sizes and falls as the loan grows.
Interest-only structures exist. The portfolio program offers a 40-year term with a 10-year interest-only period, up to 85% LTV with a 700 credit floor on purchase and rate-and-term files. The bank program’s interest-only option stops at 60% LTV, or the band’s ceiling if lower. Interest-only never raises a cash-out ceiling. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
What Do Credit, Debt, and Reserves Look Like?
Expect a 660 credit floor on the portfolio program and 680 on the bank program. Debt-to-income (DTI, your monthly debts divided by qualifying monthly income) can reach 50%. Bank statement income does not exempt you from DTI. Your mortgage, other loans, and property carrying costs all count against the number you built from deposits.
Reserves are liquid assets left over after closing. Programs in the network ask for:
- 3 months on loans to $500,000.
- 6 months to $1,500,000.
- 9 months above that.
- 2 additional months per extra financed property, to a 12-month maximum.
- 12 months for first-time investors.
Above the super-jumbo line, overlays tighten. That line sits above $3,500,000 on a primary residence and above $3,000,000 on a second home or investment property. Past it, the credit floor is 760 on a primary residence between $3,500,000 and $4,000,000, housing history must be 0x30x24, and any credit event needs 48 months of seasoning. Borrowers must be U.S. citizens or permanent residents. Non-occupant co-borrowers, rural property, and parcels over ten acres are out, and cash-out proceeds cannot count toward reserves.
Which Miami Property Types Fit?
Most do, with limits. Condominiums dominate Miami’s luxury market, so condo status matters. Through select wholesale programs, warrantable condos can reach 85% and non-warrantable condos 80%. Condotels sit at 75% on a purchase and 65% on cash-out, or 50% on the bank program. Two-to-four-unit properties can reach 85%. Second homes are limited to one unit.
Condo-project health, building reserves, and insurance can all shape how a lender treats a building. Those details change by project, so check them before you fall in love with a unit. Lendmire’s piece Warrantable Condo Leverage on a Super Jumbo Bank Statement Loan goes deeper.
Consumer mortgage lending at Lendmire is licensed in 16 states, Florida among them. Lendmire is a broker, so it shops these wholesale programs for you rather than lending itself.
Bank Statements, Assets, or Property Cash Flow?
The right path depends on what you can best document. Choose the one where your strongest asset carries the file.
| Path | What gets tested | Best fit |
|---|---|---|
| Bank statements | Your deposits, after an expense ratio | Self-employed, strong cash flow |
| Asset allowance | Liquid assets divided by 36, 60, or 84 months | Large liquid portfolio |
| Assets-only | Liquidity vs. loan plus costs, no DTI | Wealth far above reported income |
| DSCR | The property’s rent vs. its payment | Rental purchases |
The asset allowance divides liquid assets by 36 months when it supplements income and DTI is at or below 60%, by 60 months when DTI is above 60%, and by 84 months when standalone or on any loan above $3,500,000. It covers primary and second homes, with an 80% maximum. Assets-only needs U.S. liquid assets equal to the loan plus closing costs plus sixty months of any net loss on other residential property. Retirement accounts count at 70%, or 80% at age 59.5 and up. Business funds, gifts, most trusts, unvested stock, and cryptocurrency do not count.
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. A DSCR file qualifies primarily on property-level rental income covering the payment, subject to lender guidelines, not on your personal DTI. Some select lenders in the network will review coverage below 1.00, but LTV and terms adjust. The complete DSCR loans guide explains how that works.
Here is the practical split. If your deposits are strong and you are buying a home to live in, bank statements are the natural tool. If you are buying a rental, test DSCR first. Investors with large portfolios often find personal DTI binding on a bank statement file, which is exactly when DSCR earns a look.
Where Does the General Rule Break?
Some edge cases change the answer.
- Lumpy income. Hospitality, commissions, and project-based earnings swing month to month. A 12- or 24-month average smooths the swings, but a sharp decline inside the window works against you. A strong earlier year can make the longer window better.
- Mixed accounts. Commingling can push an underwriter to the harshest expense treatment.
- Ownership below 25%. Business statements generally will not work, so personal statements or another path is needed.
- Super-jumbo overlays. Citizenship, credit, and housing-history rules tighten at the line described above.
- Above $4,000,000. Every figure moves to case-by-case review.
One practitioner pattern shows up repeatedly. Files stall less on the income math than on documentation hygiene. Unexplained deposits, mixed accounts, and missing business-ownership proof cause more pended files than the expense ratio does. Gather letters of explanation for large deposits before submission.
What About the Rules Behind These Loans?
Bank statement loans are non-QM, meaning they fall outside the qualified mortgage safe harbor. They still must meet the federal ability-to-repay standard. The CFPB’s compliance guide says a lender must make a reasonable, good-faith determination of repayment ability. It also says the rule does not provide comprehensive underwriting standards, which is why methods vary across lenders.
The Federal Register’s final rule lists eight minimum factors. They include income or assets, employment, the loan payment, other debts, DTI, and credit history. It requires the lender to verify what it relies on with reasonably reliable third-party records. Bank statements are exactly that.
That clears up three common myths:
- “It’s no documentation.” The lender must verify, and statements are the verification.
- “Non-QM means illegal or subprime.” No. FedLaws explains that non-QM loans are lawful, but the lender does not get the qualified-mortgage legal shield.
- “Jumbo means a 43% DTI cap.” The ability-to-repay rule sets no DTI ceiling. Any limit comes from the investor, and across our network it reaches 50%.
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.
How Do You Prepare?
Start with the accounts. Pick 12 or 24 consecutive months, separate personal and business funds, and write down the source of any large deposit. Get the accountant letter in motion if your business profile supports a better ratio than the fixed one. Line up reserves in accounts that count, and check the condo project if you are buying one.
Then compare structures. Leverage, interest-only options, and the expense ratio all shift by program, so one file can look very different across two lenders. 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. Nothing here is a commitment to lend, and every file is underwritten individually.
Key Terms Defined
Non-QM: a loan that falls outside the qualified mortgage safe harbor and is underwritten to the investor’s own guidelines.
Expense ratio: the share of business deposits the lender subtracts to estimate costs before calculating income.
Reserves: liquid assets you hold after closing, counted in months of the housing payment.
Seasoning: the waiting period after a credit event or a purchase before a lender will treat it as settled.
DSCR: debt service coverage ratio, a rental property’s income measured against its monthly obligation.
Frequently Asked Questions
Do I need traditional personal-income documentation for a bank statement jumbo loan?
Not for the income calculation. Qualifying income comes from 12 or 24 months of consecutive statements, not returns. The lender still verifies your credit, debts, assets, and the property, and each program sets its own conditions.
Does a bigger loan change how income is calculated?
No. Loan size changes leverage, credit floors, reserves, and overlays, not the deposit method. Above $4,000,000 every file is reviewed case by case before submission, and above the super-jumbo line the overlays tighten.
Can I use a bank statement jumbo loan on an investment property?
Yes, through select wholesale programs, with lower leverage than a primary residence. A purchase ceiling of 85% applies to loans up to $1,000,000, stepping down as the loan grows. A DSCR loan is the alternative when the rent, not your income, should carry the file.
Can a business owner use personal statements?
Often yes. Transfers from your own business into a personal account count at 100% on the programs described here. Business statements need at least 25% ownership and apply an expense ratio. Which is better depends on your numbers.
What if my deposits are uneven?
The lender averages them over the statement period, so uneven months blend together. A steep drop inside the window can lower the average and hurt the file. Compare a 12-month and 24-month view before choosing.
Lendmire’s self-employed mortgages page presents both super jumbo programs, bank statement and DSCR, side by side.
About Lendmire
Lendmire is a non-QM mortgage brokerage (NMLS# 2371349) arranging DSCR investor loans in 41 markets, including Washington, D.C., through wholesale and investor-lending channels. DSCR loans are evaluated by the lender on rental income rather than personal income, subject to lender guidelines — a fit for LLC-owned portfolios, self-employed investors, and operators scaling beyond conventional loan caps. Recognized as a Scotsman Guide Top Mortgage Workplace in 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. Orrick: FHFA announces conforming loan limit increases
2. CFPB ATR/QM Small Entity Compliance Guide
3. Federal Register: Ability-to-Repay and Qualified Mortgage Standards
4. FedLaws: Qualified Mortgage rule and non-QM loans
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 Switch From a Private Bank to a Super Jumbo Bank Statement Loan · Bank Statement Loan vs WVOE Loan for Jumbo Borrowers · How to Get a Super Jumbo Bank Statement Loan on Sales or Commission
Guides: Super Jumbo Bank Statement Loans in Miami, FL · Super Jumbo Bank Statement Loans in Florida
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.