The Quick Read: On a $10M luxury condo bought as a rental, the loan is typically about 60% of the purchase price, reviewed case by case and subject to underwriting. The $10,000,000 figure is the largest loan the portfolio program can hold, not what a $10M purchase produces.
- Leverage: on a purchase of an investment property, the ceiling steps down from 80% on balances up to $1,000,000 to 60% on review in the top bands.
- Equity: expect a very large equity check, plus closing costs and at least 6 months of reserves.
- Coverage: the rent has to cover the full monthly obligation, HOA dues included, at 1.00 or better for full leverage.
- Building type: a non-warrantable condo is capped at 75% and a $1,500,000 loan, so it cannot absorb a loan this size.
- Cash-out: none is available above a $3,000,000 loan amount. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
What Does a $10M Price Tag Change?
A $10M price changes leverage and the number of gates you must clear. It does not change the basic idea. A DSCR loan, short for debt service coverage ratio, qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.
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Rate source: Freddie Mac 30-yr average via FRED® — Federal Reserve Bank of St. Louis · effective Oct 15, 2026
Prefilled with starting assumptions — enter your own rent or nightly figures, taxes, insurance, and HOA for a more accurate picture.
Program parameters update from Lendmire’s centralized guideline source. Taxes and insurance are editable estimates.
As of Oct 15, 2026 · General Freddie Mac market benchmark, not a Lendmire loan offer. Rent, nightly rate, occupancy, taxes, and insurance are editable estimates. Short-term rental figures are estimates only and vary significantly by season, property type, management approach, and local short-term-rental rules — confirm local regulations before relying on them. Qualifying income for short-term rentals varies by program — some use appraisal market rent, others use documented STR history or projections — and is confirmed in underwriting. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
Size works as a leverage dial rather than a yes-or-no line. A $400,000 duplex and a $10M condo run through the same logic: rent divided by the full monthly obligation. The difference is how much the lender will fund against the value. Lenders pull that number down as the balance climbs.
No regulator defines a “jumbo” or “super jumbo” DSCR loan. Those are trade labels for large balances. Across the wholesale network of investor lenders that Lendmire places files with, the standard DSCR program stops at $3,000,000. A separate portfolio investor program carries qualified investors past that, up to $10,000,000. For the basics, see Lendmire’s complete DSCR loans guide.
What a Non-QM DSCR Lender Lends at Each Loan Size
The ladder below shows ceilings through select wholesale programs. Each cell is a maximum, and every request is subject to underwriting. Above $4,000,000, each request is reviewed case by case before submission, so treat the 60% figure as a ceiling on review, never a flat promise.
| Loan band | Purchase / rate-term LTV | Min. Credit | Cash-out |
|---|---|---|---|
| $150K–$1M | 80% | 660 | Yes, reduced LTV |
| $1M–$1.5M | 75% | 700 | Yes, reduced LTV |
| $1.5M–$2M | 75% | 720 | Yes, reduced LTV |
| $2M–$3M | 75% | 720 | Yes, reduced LTV |
| $3M–$4M | 65% | 700 | — |
| $4M–$10M | 60%, on review | 700 | — |
LTV means loan-to-value: the loan as a share of the property’s value. Rate-and-term means refinancing without taking cash out. Nothing above $1,000,000 reaches 80%.
Above $3,000,000, a few extra conditions apply. The borrower must have a clean housing history (0x30x24) and 48 months of seasoning after any credit event. The program is for U.S. citizens and permanent residents, and the property cannot be rural. Cash-out proceeds cannot be used to satisfy reserves.
Worked Example: A $10M Condo Purchase, Step by Step
Run the numbers on a $10M purchase of a luxury condo you intend to rent to tenants. These are modeled inputs, not market data.
1. Leverage. The loan lands in the top bands, so the ceiling is 60% LTV on a purchase of an investment property, on review. The remaining 40% is equity you bring.
2. Cash beyond the down payment. Closing costs come on top. So do reserves of 6 months of PITIA on the subject property, or 12 months for first-time investors. PITIA means principal, interest, taxes, insurance, and HOA dues.
3. Appraisals. Above a $2,000,000 loan amount, two appraisals are required. This loan clears that bar by a wide margin.
4. Credit. The floor is 700 at this size, with the clean housing history noted above.
5. Coverage. The lender divides rent used for lender review by the full monthly obligation. It needs 1.00 or better for full leverage. The next section covers whether a condo this size gets there. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
The $10M price never becomes a $10M loan. The loan comes from the leverage ladder, and the equity check is the first thing to size before you write an offer.
Will the Rent Cover a Loan This Size?
Often it does not, at least not on a fully amortizing payment. Luxury condos tend to rent for a thin slice of price each year, and their HOA dues and taxes run large. Dues sit in the denominator, so they pull the ratio down just as hard as principal and interest do.
At this size, plan on needing 1.00 or better. Coverage below 1.00 is a real path through select programs on smaller balances, with LTV and terms adjusting, subject to underwriting. That path stops at $2,000,000 in loan amount, so it does not reach this deal. No-ratio files, offered by only a handful of lenders in the network and subject to underwriting, stop at the same $2,000,000 ceiling.
Short-term rentals do not help here either. Those files qualify on documented operating history at 80% of gross, and they also stop at $2,000,000. Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income.
You do have levers. Two matter most:
- A lower loan amount. More equity shrinks the payment and lifts the ratio.
- Interest-only structure. The portfolio program offers a 120-month interest-only period on 30- and 40-year terms, up to 75% LTV, qualified on interest, taxes, insurance, and HOA. Because the principal portion drops out, the ratio improves, though the balance does not shrink during that period.
One caution: passing the DSCR test does not mean the property cash-flows. The ratio counts PITIA but leaves out maintenance, vacancy, and management. Judge the deal on those too.
Does the Building Type Override the Size Ladder?
Yes. Two caps apply at once, and the tighter one controls. The condo’s classification sets its own ceiling, and it can undercut the size ladder.
- Warrantable condo. Warrantable is an agency label for a building that meets the standard rules of the large mortgage buyers. These condos use the size ladder above.
- Non-warrantable condo. This is a building that fails one of those rules. The ceiling is 75% LTV and a $1,500,000 loan amount, subject to underwriting. A $10M unit cannot fit under that loan cap at any normal leverage.
- Condotel. This is a hotel-style building where units rent nightly. The ceiling is 75% on a purchase and 65% on a refinance, a $1,500,000 loan, and $250,000 cash-in-hand. A building with heavy short-term rental activity can be treated this way even if it looks like an ordinary condo.
Non-warrantable does not mean unfinanceable. It caps leverage and loan size. A DSCR lender that never sells loans to an agency reads those building issues differently than an agency lender does. Common triggers include a high share of investor-owned units, thin HOA reserves, pending litigation, and commercial space in the building. For a deeper look at the next tier of cash-out math on these buildings, see Lendmire’s piece on how much equity a super jumbo cash-out can release on a non-warrantable condo.
Request the HOA questionnaire before you make an offer. Warrantability and building rules can matter more than price.
How Underwriting Treats a Luxury Condo
Underwriting moves through five gates. The ratio is only one of them.
Business purpose. 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. Federal rules draw that same line between consumer credit and credit extended primarily for a business or commercial purpose. Eligibility depends on a true investment purpose, not on loan size.
Collateral. The lender sorts the condo as warrantable, non-warrantable, or condotel. That step sets the leverage cap and reserve overlay.
Valuation and rent. Two appraisals are required above $2,000,000. The appraiser sets both value and market rent.
Borrower and vesting. Entity vesting is welcome, subject to program terms, though layered entities are not. A true investor structure matters more than which entity you use.
Credit and reserves. The credit floor is 700 at this size, and reserves run 6 months of PITIA on the subject (12 for first-time investors). Other financed properties add no extra reserve requirement, with up to 20 financed properties allowed. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
A pattern worth knowing: files at this size often fail on the building or the equity check before the ratio becomes the issue. Brokers who see many lenders’ guidelines usually test the HOA documents and the cash-to-close first, then the rent math.
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.
Where Does the General Rule Break?
Several edge cases change the answer.
- Cash-out. None is available above a $3,000,000 loan amount. Above $1,500,000, cash-out is also unavailable to borrowers at 680 credit or below.
- Owner use. DSCR is investment-only. A luxury condo you will live in belongs in a different product category.
- Rural or acreage. Rural property is excluded above $3,000,000 in loan amount.
- Conforming limits. Agency limits do not govern DSCR loans. As a one-time contrast, the current FHFA baseline one-unit limit is $832,750, with a high-cost ceiling of $1,249,125. A $10M condo is roughly 8 to 12 times that ceiling, which puts it in non-QM or portfolio territory by definition.
When DSCR Is Not the Right Product
DSCR works when the property’s rent is the stronger number. When your personal cash flow or assets are stronger, other products may fit better. A bank-statement loan is reviewed on documented income under the applicable program, subject to lender guidelines. For one angle on that path, see Lendmire’s article How Much Equity a Non-QM Cash-Out Releases for a Private-Bank Client.
| Product | Qualifies mainly on | Best fit |
|---|---|---|
| Super jumbo DSCR | Property rent vs. payment | Rent-strong rentals |
| Bank-statement loan | Borrower’s documented income | Strong income, thin rent |
| Asset-based loan | Borrower’s liquid assets | Large portfolios |
| Full-doc jumbo | Personal income and DTI | W-2 or tax-return earners |
A fully documented jumbo loan is a different product. It uses personal income and debt-to-income ratio, and it is generally restricted on non-warrantable condos and entity vesting. Prepayment penalties are common on investor loans, so ask about them before you compare offers.
The Deal-Killer Checklist
Check these before you spend on an appraisal:
- The building is classified as non-warrantable or condotel, and the loan would exceed its cap.
- Rent does not reach 1.00 on the full obligation, even with interest-only.
- Credit is below 700, or there is a recent credit event within the seasoning window.
- The HOA questionnaire shows litigation, heavy investor concentration, or thin reserves.
- You plan to occupy the unit yourself.
- You cannot cover reserves without counting cash-out proceeds.
- The borrower is not a U.S. citizen or permanent resident.
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.
Key Terms Defined
DSCR (debt service coverage ratio): the property’s qualifying monthly rent divided by its full monthly obligation, including HOA dues.
Non-QM: a loan that falls outside the standard rules for agency-eligible mortgages, usually because the borrower or property is evaluated differently.
PITIA: principal, interest, taxes, insurance, and HOA dues, the full monthly obligation used in the coverage test.
Warrantable condo: a building that meets the standard rules of the large agency mortgage buyers.
Non-warrantable condo: a building that fails one of those rules, which caps leverage and loan size here.
Condotel: a hotel-style building where units rent nightly, with its own caps.
Frequently Asked Questions
Can a lender really finance a $10M condo?
Yes, in principle, at reduced leverage and subject to underwriting. The portfolio program reaches a $10,000,000 loan amount, but a $10M purchase typically supports about 60% LTV on review. You bring the rest as equity, plus reserves and closing costs.
Does a non-warrantable $10M condo qualify?
Generally not at that size. Non-warrantable condos are capped at 75% and a $1,500,000 loan amount, so the loan would have to shrink to a fraction of the price. Some buildings can be reclassified once the issue is documented, but that is a building-level review, not a given.
Can I take cash out on a $10M condo?
Not above a $3,000,000 loan amount. A loan on a $10M condo would sit above that line. Cash-out also steps down to lower LTVs as balances rise below it.
What if the rent does not cover the payment?
You can add equity, shrink the loan, or use the interest-only structure. Coverage below 1.00 is a real path on smaller balances through select programs, with LTV and terms adjusting, subject to underwriting. At this size, plan on 1.00 or better.
Can short-term rental income get me to a bigger loan?
No. Short-term rental files stop at $2,000,000 in loan amount, and income is counted at 80% of gross on documented history. Local permission must also be documented for the specific property.
Next Step
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.
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 business-purpose investment financing through select lenders in its wholesale network, across 41 markets, including Washington, D.C. Nothing here is a commitment to lend, and every file is underwritten individually. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. eCFR, 12 CFR 1026.3: Exempt transactions
2. Orrick Infobytes: FHFA announces increases to conforming loan limits
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: How to Finance a 2-4 Unit Luxury Portfolio With DSCR Loans · How to Finance a Luxury Condo Rental With a DSCR Loan · Luxury Condo vs Single-Family Home Financing With a DSCR Loan
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.