The Quick Read: On a super jumbo bank statement loan, the casita does not change how your income is calculated, because qualifying income comes from your deposits, not the property’s rent. The casita changes the collateral side of the file. A permitted unit is easier for an appraiser to support as value, while an unpermitted unit may be discounted, excluded, or conditioned, depending on the lender’s overlay.
- Income is reviewed on 12 or 24 months of bank statements, so casita rent does not help you qualify.
- Permit status affects appraised value, and appraised value drives leverage.
- Lender treatment of unpermitted space varies. No single rule covers every program.
- Above $4,000,000, every file is reviewed case by case before submission.
- The cleanest file is one where the appraiser can point to a permit record.
The Honest Answer: Who Each Option Is For
A permitted casita is for the buyer who wants the structure treated as real, reviewable space. An unpermitted casita is for the buyer who can price the deal as if the casita adds nothing, and who is willing to take on legal, insurance, and resale questions.
Neither choice wrecks a bank statement file on its own. The income side and the property side are separate tracks. Your deposits get you through the first. The appraisal and the lender’s property review decide the second.
Across the wholesale network Lendmire works with, no program treats unpermitted space identically. Some lenders refuse to count it at all. Others will lend if the appraiser addresses its effect on value and comments on workmanlike quality. That spread is why you ask before you make an offer, not after.
Side-by-Side
The table below describes how each option typically plays out on a super jumbo bank statement file. The “unpermitted” column reflects published industry norms and general appraisal practice, and it varies by lender overlay.
| Factor | Permitted casita | Unpermitted casita |
|---|---|---|
| Review basis | Borrower deposits | Borrower deposits |
| Casita rent in income | Generally not counted | Generally not counted |
| Documentation | Permit, final, certificate of occupancy | Often a legalization plan or appraiser comments |
| Appraisal treatment | Usually counted as recognized space | May be discounted or excluded |
| Entity vesting | Subject to program terms | Subject to program terms |
| Timeline, qualitatively | Fewer property questions | More conditions possible |
| Reserve expectations | Set by loan size, not permit status | Set by loan size, not permit status |
| Insurance | Usually straightforward | Coverage may exclude the illegal portion |
| Lender overlay risk | Lower | Higher, lender-specific |
Notice the rows that match. Income, reserves, and credit are driven by your file and loan size. Permit status shows up in the appraisal, the collateral view, and the conditions list.
How the Bank Statement Side Actually Works
Bank statement underwriting reads your deposits. Through select wholesale programs, subject to full underwriting, you document 12 or 24 consecutive months of personal or business statements. The underwriter removes transfers and one-time deposits, applies an expense ratio to business accounts, and divides by the number of months.
Business statements need at least 25% ownership. Fixed expense ratios typically 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. An accountant-provided ratio or a profit-and-loss method is also available. Transfers from your own business into your personal account count at 100%.
Notice what is missing: the casita. Even if you plan to rent it, that rent is not your qualifying income. On a second-home file in particular, rental income generally cannot be counted.
This is the biggest difference from a DSCR loan, where the appraiser’s rent conclusion drives qualification. If you are weighing both paths, Lendmire’s complete DSCR loans guide explains how property-rent-based lender review works.
Why the Casita Still Matters
Bank statement loans do not ignore the property. The home is still appraised, and its value sets your loan-to-value ratio (LTV, the loan amount as a percentage of value). If the appraiser credits the casita, the value is higher. If not, your leverage is measured against a lower number.
Leverage on these files steps down with loan size. On a primary residence, through select wholesale programs, subject to full underwriting, the best purchase cells run:
| Loan band | Best purchase leverage | Program |
|---|---|---|
| $300K to $1M | 90% | Portfolio non-QM |
| $1M to $1.5M | 85% | Portfolio non-QM |
| $1.5M to $2M | 85% | Portfolio non-QM |
| $2M to $2.5M | 80% | Portfolio non-QM |
| $2.5M to $3M | 80% | Portfolio non-QM |
| $3M to $3.5M | 75% | Portfolio non-QM |
| $3.5M to $4M | 75% | Portfolio non-QM, super jumbo overlays |
| $4M to $5M | 65% on review | Bank portfolio |
| $5M to $6M | 60% on review | Bank portfolio |
The portfolio non-QM program carries files to $4,000,000. The bank portfolio program begins above $4,000,000 and carries twelve-month-statement files to $30,000,000, with its own ladder. Every file above $4,000,000 is reviewed case by case before submission.
Those figures are ceilings, and the top cell in each band needs a stronger credit score than the program floor. Second homes and investment properties follow their own ladders, so read each from its own table.
The bands apply to the loan amount, not the purchase price. Multiply price by leverage first, then read the band for that loan.
Here is why this matters for a casita. Picture a main house and a casita where the appraiser credits the casita. The value supports the full ladder cell. Now picture the same property where the appraiser excludes the casita. The value drops, and if your price assumed the casita counted, you either bring more cash or the loan shrinks. That gap is the real cost of an unpermitted unit.
How Appraisers Treat Each Status
An appraiser identifies the casita, checks whether it is permitted, and verifies permits and finals through public records. A permit that was never finalized can lead to little or no credited value.
For contrast only, agency appraisal guidance shows how the profession frames this. Fannie Mae’s Selling Guide section on the improvements section of the appraisal report has separate headings for accessory dwelling units and for additions without permits. It requires the appraiser to describe the unit, and it asks the lender to confirm that an illegal use will not jeopardize a future insurance claim. Those are agency rules, not rules for non-QM files, and non-QM lenders write their own overlays.
Appraisal forms follow the same logic. The 1004 residential report has a unit field with a “One with Accessory Unit” option and a zoning compliance field with an “Illegal (describe)” choice. Fannie Mae’s appraiser forms page lists the 1004, the 1007 rent schedule, and the 1025 small income property report.
Two practical points follow. First, an unpermitted casita does not automatically kill a loan, and agency guidance tells the appraiser to comment on the permit gap rather than assign zero value by rule. Second, space can fail on physical grounds (ceiling height, below-grade, no heat source) separately from the paperwork gap. A permit fixes one problem, not the other.
A legal non-conforming, or grandfathered, casita sits in between. It was lawful when built but no longer matches current code. Lender treatment varies, so bring the documentation that proves its history.
When a Permitted Casita Is the Better Fit
Choose the permitted route if you want the strongest collateral picture and the fewest property conditions. It fits best in these situations:
- You are buying at a loan size where leverage is tight. Above $3,500,000 on a primary residence, super jumbo overlays apply (a 700 credit floor, 48-month seasoning on credit events, no rural property, ten acres maximum). Every dollar of credited value matters.
- You want the casita to support value on a cash-out refinance. The cash-out ladder is lower than purchase at every size, so you cannot afford a value haircut.
- You plan to rent the casita. A permitted unit is easier to insure and lease, though that rental income still does not count toward qualifying.
- You may sell or refinance later. A clean permit record travels with the property.
Gather the permit, the final inspection, and the certificate of occupancy before you ask for an appraisal. Verifying status before an offer also avoids paying for an appraisal that comes back with the casita excluded. Your local building department is the authority here, since permit rules and ADU law vary by jurisdiction.
When an Unpermitted Casita Is the Better Fit
An unpermitted casita can be the better fit when the price reflects reality and the rest of your file is strong. It works in these situations:
- You are buying at a discount that assumes zero value for the casita, so a lower appraisal does not break your deal.
- Your loan is well inside the leverage band, so excluded value still leaves room.
- You plan to legalize the unit and have the budget. Retroactive permitting, usually through plan review of as-built work, is possible but costlier than permitting in order.
- Your reserves and credit are comfortable. Reserves run 3 months to $500,000, 6 months to $1,500,000, and 9 months above, and permit status does not change them.
The risks are real. Some carriers exclude coverage for the unpermitted portion. Disclosure obligations may apply on resale. A lender may add conditions, or decline to count the space altogether.
Think of it this way: price the deal as if the casita adds nothing. Anything the lender credits is a bonus, not the plan.
Cure Paths When the Issue Surfaces Mid-File
If the problem appears after you are under contract, these options exist. Each carries a tradeoff.
| Cure path | Tradeoff |
|---|---|
| Legalize before the loan | Cost and local approval, but cleanest file |
| Price reduction or seller credit | Lowers your basis, value may still be excluded |
| Exclude the casita from collateral value | Lower LTV base, more cash from you |
| Different program or structure | Overlays differ by lender, so a fit may exist elsewhere |
Because Lendmire is a broker that shops multiple wholesale programs, the last row matters. One program’s overlay on unpermitted space is not another’s. A file that struggles in one place may fit in another, subject to full underwriting and lender guidelines.
Key Terms Defined
Casita: A small separate or attached living space on a residential lot. The word describes the look and use, not the legal status.
ADU (accessory dwelling unit): A casita that meets local legal requirements as a secondary dwelling.
Permitted: Built with local approval, inspected, and finalized.
Grandfathered: Built legally under earlier rules that have since changed.
Super jumbo: A loan large enough to trigger extra overlays. No regulation defines it, so each lender draws its own line.
Expense ratio: The share of business deposits treated as costs before income is calculated.
A Note on Verification, Not Underwriting Rules
Even non-QM loans require the lender to make a reasonable, good-faith determination that you can repay. That ability-to-repay duty does not ban any loan feature outright. Non-QM means a different way of documenting income, not an absence of review. If you want a side-by-side on larger-balance options, Lendmire’s piece Jumbo vs Super Jumbo Bank Statement Loans covers that ground.
Balanced Verdict
Pick the permitted casita if you want fewer surprises, stronger value support, and room for leverage to hold. Pick the unpermitted casita only if the price already assumes the unit adds nothing and you can absorb the legal and insurance exposure.
Your income documentation stays the same either way. What moves is the appraisal, the conditions list, and how much cash you may need at the table. Treat permit status as a pricing question before it becomes a financing question.
Frequently Asked Questions
Can I get a super jumbo bank statement loan with an unpermitted casita?
Often yes, depending on the lender’s overlay and the appraisal. Some programs will not count unpermitted space, while others will lend if the appraiser comments on value and quality. Approval is subject to full underwriting and not a commitment to lend.
Does casita rent count toward qualifying on a bank statement loan?
Generally no. Qualifying income comes from your deposits after an expense ratio. On a second home, rental income generally cannot be counted at all.
Does a grandfathered casita count as permitted?
Not automatically. Lenders and appraisers review legal non-conforming status case by case, so bring documents that show the unit was lawful when built.
What if the seller will not legalize the casita?
You can negotiate price on the assumption that the casita adds no value, ask for a seller credit, or exclude the structure from collateral value. Another program in the network may also treat it differently.
Does permit status change reserves or credit requirements?
No. Reserves and credit follow loan size and leverage, not permit status. Above $4,000,000 the whole file is reviewed case by case before submission.
Founders weighing a similar choice can also read Lendmire’s piece Super Jumbo Bank Statement vs DSCR for a Founder After a Sale.
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. Fannie Mae Selling Guide B4-1.3-05
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 Support a Rural Cabin Appraisal on a Super Jumbo Bank Statement Loan · How to Get a Super Jumbo Bank Statement Loan Without Selling Stock · Can a Founder Ahead of an Exit Get a Super Jumbo Bank Statement Loan?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.