The Quick Read: A private bank ARM suits a founder who will move much of the sale proceeds to that bank and expects to exit before the fixed period ends. A non-QM fixed loan suits a founder who wants a rate that holds for the fixed term and is reviewed on deposits or assets instead of traditional personal-income documentation. The two products differ on three things: who judges the file, how the sale proceeds are treated, and what happens when the fixed period ends.
- A private bank usually underwrites your whole balance sheet and relationship. A non-QM program underwrites documented deposits, assets, or property cash flow.
- Sale proceeds work as assets and reserves in both files. They are not income in either one.
- Rate structure and documentation path are separate choices. Both kinds of lender can offer adjustable and fixed structures.
- Above $4,000,000, every Lendmire-side file is reviewed case by case before submission, so treat any leverage figure at that size as a starting point.
Here is the honest answer in one paragraph. If you already bank with a private bank, plan to keep a large share of your liquidity there, and will sell or refinance within a few years, the ARM can be a sensible tool. If you want certainty on the rate for the fixed term, want to keep your assets where they are, or are buying a rental or second home, a non-QM fixed loan is usually the cleaner fit. Neither is better in the abstract. The right one depends on your exit plan and on where you want your money to sit.
Side-by-Side
The table below compares the two on structure, not price. The private bank column reflects published industry norms, which vary by bank, so confirm each item directly with the bank. The non-QM column reflects guidelines from select wholesale programs that Lendmire places files with, subject to full underwriting.
| Factor | Private Bank ARM (industry norms) | Non-QM Fixed (wholesale network) |
|---|---|---|
| Review basis | Whole relationship plus bank judgment | Deposits, assets, or property cash flow |
| Documentation | Traditional personal-income documentation, asset statements, sale papers | 12 or 24 months of statements, or asset records |
| Sale proceeds | Often tied to moving assets to the bank | Counted as liquid assets once documented |
| Rate structure | Fixed intro period, then adjusts | Holds for the fixed term |
| Property types | Primary and second home most common | Primary, second home, investment, each on its own ladder |
| Entity vesting | Usually personal; policy varies | Entity on investment loans; guaranty typical |
| Reserves | Set by the bank, often asset-based | 3, 6 or 9 months by loan size |
| Leverage at size | Bank-set and discretionary | Ladder by size; case by case above $4,000,000 |
Both columns carry a caution. A bank holding the loan on its own books can bend its rules for a client it values, and it can also decline an exception. A wholesale program publishes its ladder, which is less flexible but easier to plan around.
This Is Two Decisions, Not One
The phrase “private bank ARM vs non-QM fixed” blends two separate choices. The first is the underwriting path: relationship review or documented deposits and assets. The second is the rate structure: adjustable after an introductory period, or fixed for the term.
Those choices can be mixed. A private bank can offer a fixed loan. The bank portfolio program Lendmire places files with, a wholesale program that carries twelve-month-statement files to $30,000,000, offers 5- and 7-year fixed-period adjustables. Its 10-year fixed-period adjustable is fully amortizing. The portfolio non-QM program, which carries files to $6,000,000, offers a 40-year term with a 10-year interest-only period, subject to full underwriting.
So the useful question is not which label wins. Ask which underwriting path fits your documents, then ask which rate structure fits your exit date. A founder who gets those two answers in the wrong order often ends up with a rate structure chosen for a loan they do not qualify for.
Key Terms Defined
ARM means an adjustable-rate mortgage. The rate is fixed for an introductory period, then moves with a benchmark index plus an agreed add-on.
Non-QM means a mortgage that falls outside the standard qualified-mortgage box. It exists for borrowers whose income or assets do not fit a tax-return-only file.
Liquid assets are cash and investments you can sell without a long process. Documented sale proceeds sitting in your personal account usually count.
Reserves are the months of housing cost you must hold in liquid funds after closing.
Fixed-period adjustable is an ARM whose rate holds steady for a set number of years before it starts adjusting.
What Happens to Sale Proceeds in Each File
Sale proceeds are the heart of this decision. After a company sale, you often have large liquidity and little current income. That profile is awkward for a lender that wants a salary or recent business deposits.
A private bank reads the balance sheet. It looks at what you hold, what you will keep there, and what you do next. Documents typically include personal statements for the proceeds, a sale agreement or closing statement, and often traditional personal-income documentation. Many private banks tie their best terms to assets held with the bank. Ask what that condition requires and how long it lasts.
A non-QM file converts the same facts into a program path. Across the wholesale network, there are three main routes for a newly liquid founder:
1. Asset allowance. Liquid assets are divided by 36, 60 or 84 months to create qualifying income. The 84-month divisor applies when the asset income stands alone or the loan is above $3,500,000. This path is for primary and second homes only, at 80% maximum.
2. Assets-only. There is no debt-to-income test. Your U.S. liquid assets must equal the loan amount, plus closing costs, plus sixty months of any net loss on other residential property.
3. Bank statements. If you have started a new venture or consult after the sale, 12 or 24 months of deposits can qualify after an expense ratio. Transfers from your own business into a personal account count at 100%.
Know what does not count. Retirement accounts count at 70%, or 80% at age 59.5 and older. Business funds, gifts, unvested stock, cryptocurrency, and trusts other than a revocable living trust never count. Earn-outs and escrowed holdbacks generally are not liquid until they are paid out, so ask each program how it treats them.
An experience note from the broker side: files for newly liquid founders stall less on the math than on the paper trail. A sale agreement, a closing statement, and an unbroken run of statements that shows the funds landing in your own account answer most questions before a reviewer asks them. Moving the money twice before applying creates questions that an easy file does not need.
When a Private Bank ARM Is the Better Fit
The ARM wins when the relationship is the point and the hold period is short. Four situations fit.
You already want your liquidity at that bank. If you plan to keep investment or trust accounts there regardless, the relationship condition costs you little. Private banks typically evaluate the whole relationship, so a founder with a large, stable balance sheet may get flexible treatment that a published ladder does not offer. The details are bank-specific, so confirm them with the bank.
You expect to leave before the reset. The fixed period of an ARM is a window. If you will relocate, sell the house, or take a second liquidity event inside it, you may never face the adjustment. The risk sits in the plan failing. The CFPB’s mortgage key terms note that an ARM’s payment can rise substantially after the introductory period. A founder with no salary should decide ahead of time how a reset would be paid for.
Your file is complicated in ways a ladder cannot handle. Concentrated stock, an unusual trust structure, or a large amount of illiquid consideration may suit a human underwriter better than a program grid. A bank deciding with discretion can weigh these. A wholesale program applies its rules as written.
The loan is a primary residence at a size where a bank’s own ladder works for you. Through select wholesale programs, subject to full underwriting, the bank portfolio program allows 65% on a primary residence purchase from $4,000,000 to $5,000,000, 60% up to $10,000,000, and 55% to $30,000,000. Every figure at that size is reviewed case by case before submission, and a private bank may price its own exceptions differently.
The tradeoffs are real. You may concentrate your deposits with one institution. Changing the structure later often means a new application. A bank can also change its guidelines for the next loan, even if it treated you well on the first one.
When a Non-QM Fixed Is the Better Fit
The non-QM fixed loan wins when you want rules you can read in advance and a rate that holds for the term. Five situations fit.
You want to keep your assets where they are. A non-QM file does not require you to move the proceeds to the lender. You document them and keep your own investment and banking relationships.
You cannot or will not rely on a reset. A fixed structure removes adjustment risk for the fixed term. That matters most when your income is lumpy, as it often is in the first years after a sale. Lendmire’s wholesale network places these files, and the reserve rule scales with size: 3 months up to $500,000, 6 months up to $1,500,000, and 9 months above, plus 2 months per additional financed property up to a 12-month maximum. First-time investors hold 12 months.
You are buying something other than a primary residence. Second homes and investment properties each take their own leverage ladder through select wholesale programs. A rental that qualifies primarily on property-level rental income covering the payment, subject to lender guidelines, does not depend on your personal income at all. For the mechanics of that path, see Lendmire’s complete DSCR loans guide.
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, as the Federal Register’s discussion of the ability-to-repay rule explains. The flip side matters: if you live in the property, it is a consumer-purpose loan and a business-purpose loan cannot be used for it.
You want to buy in an entity. On investment loans, entity vesting may be available, subject to lender program eligibility. A personal guaranty is generally required, so the entity does not fully separate your personal assets from the loan. Owner-occupied loans are normally made to you personally, and a revocable living trust is the only trust that counts toward assets.
You want a published, predictable ladder. For a primary residence purchase, the maximum loan-to-value steps down as the loan amount rises, with the highest tier reserved for the strongest credit profiles. Above the top published loan amount, the figure is reviewed on a case-by-case basis. Credit floors differ between the portfolio program and the bank program, and they tighten above the super-jumbo line. Debt-to-income limits also apply.
Above $3,500,000 on a primary residence, and above $3,000,000 on a second home or investment property, extra overlays apply. These include a 700 credit floor, a 0x30x24 housing history, 48-month seasoning on any credit event, and U.S. citizen or permanent resident status. They also exclude rural property and non-occupant co-borrowers, and cash-out proceeds cannot satisfy reserves. Tax treatment can depend on how the funds are used and how the property is held; borrowers should keep clear records and speak with a qualified tax professional before relying on any deduction.
The tradeoffs here are equally real. A fixed structure means you cannot count on a lender’s discretion to bend a rule. Leverage steps down with size. Some founders also find that a fixed term outlasts their plans, which makes the flexibility to refinance or sell the property more important than the fixed term itself.
Three Founders, Three Answers
These are hypothetical profiles, not deal stories.
The founder who stays. Picture a founder who sold, plans to keep most of the proceeds at the same private bank for a decade, and wants a primary residence in a size band the bank handles well. The ARM fits. The relationship condition costs little, the bank’s discretion has value, and the exit plan covers the reset.
The founder who buys a rental. Say a founder wants a rental property in an LLC and prefers to leave the proceeds in an existing brokerage account. The non-QM fixed path fits, since the property’s rent carries the file and the holdings stay put. Personal documents are still needed: identity, credit, and reserve statements.
The founder neither product serves yet. Consider a founder whose proceeds are mostly an earn-out and unvested stock. Neither product may fit until the funds convert to liquid assets. Waiting, or checking a conventional or bank alternative first, is a legitimate answer.
The Verdict
This is a referee’s call, not a recommendation. Choose the private bank ARM if the relationship is the point, your hold period is shorter than the fixed window, and you can cover a reset if the plan slips. Choose the non-QM fixed loan if you want your assets to stay where they are, you need a rate that holds for the term, or the property is a second home or rental. If you are on the fence, a useful test is simple: if you could not comfortably carry the loan after a reset, the fixed structure is the safer choice.
Many founders compare both before committing, and the comparison is easier with the size, occupancy, and documentation path fixed first. Lendmire’s piece on super jumbo requirements after a sale covers the documentation side in more depth. If you are financing a high-balance property on business or personal bank statements, or on liquid assets after a sale, and want to see how the numbers work, Lendmire can help you compare super jumbo options based on your deposits, assets, the property, credit profile, leverage, and goals. Lendmire is a broker, so it shops these programs rather than lending directly, and consumer mortgage lending is licensed in 16 states (AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA, WA). Nothing here is a commitment to lend.
Frequently Asked Questions
Can I get a private bank loan without moving my assets?
Sometimes, but many private banks tie their best terms to assets held with them, so the answer varies by bank. Ask what balance the bank wants, for how long, and what happens to the terms if you move the funds later. A non-QM file does not require the move.
Do sale proceeds count as income?
No. In both kinds of file, sale proceeds count as assets and reserves. A non-QM asset path converts liquid assets into qualifying income by dividing them over 36, 60 or 84 months, or is reviewed around assets alone when liquid funds equal the loan plus costs. Proceeds in a business account do not count as liquid assets.
Is an ARM too risky without a salary?
It depends on your exit date and your reserves. The payment can rise after the fixed period, and a founder with lumpy income should know how a reset would be covered before choosing it. If you expect to sell or refinance well inside the fixed window, the risk is smaller. If the plan could slip, a fixed structure removes that exposure.
Can I use a business-purpose loan for the house I live in?
No. A business-purpose loan is for investment property. If you will live in the home, it is a consumer-purpose loan and goes through the primary or second home ladder. Second homes are one-unit only.
Does leverage change with the size of the loan?
Yes. Through select wholesale programs, subject to full underwriting, maximum leverage on primary residence purchases steps down as loan size grows, with the highest ceiling of 90% available only up to $1,000,000 and lower ceilings applying to larger balances. Above $4,000,000 every file is reviewed case by case before submission, so treat any ceiling at that size as a starting point.
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
2. Federal Register, Ability-to-Repay and Qualified Mortgage Standards Under the Truth in Lending Act
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 Super Jumbo Bank Statement Loans Work for AUM Clients Weighing Non-QM Options · Super Jumbo IO ARM vs Fixed Reset Options on a Bank Statement Loan · How a 10-Year ARM Super Jumbo Bank Statement Loan Works
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.