The Quick Read: A private bank jumbo mortgage can be refinanced into a wholesale bank statement loan by replacing traditional personal-income documentation with twelve or 24 months of consecutive deposits, which the underwriter converts into qualifying income after an expense ratio, then testing credit, reserves, appraised value and leverage against the size of the balance. A rental held in the borrower’s name may qualify on property cash flow instead.
- Qualifying income is eligible deposits divided by the statement months, after an expense ratio.
- Transfers from your own business into a personal account count in full. Transfers between your own accounts do not.
- Leverage steps down as the loan grows, and every file above $4,000,000 is reviewed case by case before submission.
- Programs are placed through select wholesale programs, subject to full underwriting, and nothing here is a commitment to lend.
Why Is a Private Bank Jumbo Hard to Leave?
Private bank jumbo loans are built around the client, not around a standard guideline set. The bank holds the loan on its own balance sheet, so it can price and structure the file as it likes. Pricing is often tied to the wider relationship, such as deposits or invested assets held at the bank. Interest-only periods and adjustable terms are common.
That structure is why borrowers leave. A reset date arrives, a balloon term approaches, or the borrower’s income changes shape. Founders sell a stake, physicians move from a salary to a practice, and attorneys become partners. The bank still underwrites on the old profile, and a decline from one bank is usually a program-fit problem, not a verdict on the borrower.
Across the wholesale network, the pattern is consistent. Private bank files come in with strong assets and thin traditional personal-income documentation. Tax-return underwriting uses income after deductions, and self-employed borrowers take legitimate deductions that shrink it. Bank statement programs read deposits instead.
Key Terms Defined
Jumbo mortgage: a loan that exceeds the size limits for conforming loans, so it is held by a bank or sold to private investors.
Private bank mortgage: a jumbo loan a bank keeps on its own books and prices around the client relationship.
Non-QM loan: a loan that sits outside the standard Qualified Mortgage documentation box but still requires verified repayment ability.
Bank statement income: qualifying income calculated from eligible deposits over twelve or 24 months instead of from traditional personal-income documentation.
Expense ratio: the share of business deposits removed to account for the cost of running the business.
Rate-and-term refinance: a refinance that replaces the existing balance without taking out extra cash.
How Do You Refinance a Private Bank Jumbo Mortgage With Bank Statements, Step by Step?
The process runs in a fixed order. Each step answers one question the underwriter has to settle before the deal works.
1. Pull the payoff and the loan terms. Ask the current bank for a payoff statement and the note terms. Check for prepayment language, an interest-only period, and the adjustment or balloon date.
2. Choose the statement type. Personal statements and business statements both work through select wholesale programs. Business statements need at least 25% ownership. The portfolio non-QM program accepts twelve or 24 months. The bank portfolio program uses twelve.
3. Strip the deposits. The underwriter removes transfers between your own accounts, refunds, loan proceeds and one-time deposits. Transfers from your own business into your personal account count at 100%.
4. Apply the expense ratio. Business deposits are reduced by an expense ratio, which varies with the size and type of the business. A service business with no employees typically receives the lowest ratio, a business with a handful of employees a higher one, and a larger business or any product business the highest. An accountant-provided ratio, or a profit-and-loss method, can replace the fixed ratios, subject to the lender’s cap.
5. Divide by the months. The remaining deposits divided by the number of statement months give qualifying monthly income.
6. Test the debt side. Debt-to-income can run to 50%. The new payment, taxes, insurance, dues and your other obligations are measured against the income from step 5.
7. Order the appraisal and confirm reserves. Value sets the leverage tier. Reserves come from your own liquid assets.
Statements must be consecutive. A transaction history never substitutes for a statement.
Why Do Underwriters Remove Some Deposits?
Underwriters remove deposits because the lender has to confirm that what it counts is your income. The CFPB’s ATR/QM compliance guide says a lender relying on deposits must confirm they are the consumer’s personal income, and an unidentified deposit with no follow-up does not meet the standard. The underlying rule, 12 CFR 1026.43, requires a reasonable, good-faith determination of repayment ability at or before closing.
A bank statement loan is not a no-document loan. It is reviewed on documented income under the applicable program, subject to lender guidelines. The statements are the documentation.
This is also where files stall. Commingled personal and business activity, large unexplained deposits, and overdrafts all generate conditions. Clean those up before the file goes in. A short written explanation for each large deposit saves a round of questions.
What Does It Look Like in Practice?
Consider a founder with a product business and six employees, applying on twelve months of business statements. The underwriter strips internal transfers and one-time deposits, then applies the 50% ratio for a product business. Half of the eligible deposits remain, and that half is divided by twelve.
Now change one fact. The same founder moves business profit into a personal account each month. Those transfers count at 100% on personal statements, so qualifying income can look quite different. Which statement set to submit is a real decision. A wholesale broker running both side by side usually finds a clear winner.
Business statements give a lower figure when the business is large and the owner draws modestly. Personal statements work well when transfers are regular and traceable.
How Does Leverage Change With the Loan Size?
Leverage steps down as balances grow. The figures below are ceilings through select wholesale programs, subject to full underwriting, and they depend on credit tier.
| Loan size | Primary residence, rate-and-term | Primary residence, cash-out |
|---|---|---|
| $300K–$1M | 90% | 80% |
| $1.5M–$2M | 85% | 75% |
| $2M–$3M | 80% | 70% |
| $3M–$3.5M | 75% | 65% |
| $4M–$5M, on review | 65% | 60% |
Second homes and investment property run about five points lower at most sizes, and the gap is wider in some bands. As one example, an investment property at $3M–$3.5M tops out at 60% on a rate-and-term refinance. These tables show ceilings, not offers.
The bank portfolio program carries twelve-month-statement files up to $30,000,000 on its own ladder: 65% to $5,000,000, 60% to $10,000,000, and 55% to $30,000,000. Above $4,000,000, every file is reviewed case by case before submission. The leverage figure at that size is a ceiling on review, never a flat promise.
Credit also steps up. Pricing and available terms vary by lender, borrower profile, property type, and full underwriting review. Past that line, expect a 0x30x24 housing history and 48 months of seasoning on any credit event. The overlays begin above $3,500,000 on a primary residence and $3,000,000 on a second home or investment property.
For deeper sizing detail, Lendmire’s piece on how a super jumbo cash-out works for a private bank client covers the equity side of these files.
What About Reserves and Cash-Out?
Reserves are three months up to $500,000, six months up to $1,500,000, and nine months above that. Add two months for each additional financed property, up to a twelve-month maximum. First-time investors carry twelve months. Above the super-jumbo line, cash-out proceeds cannot satisfy reserves.
Cash-out is available but has its own limits. Proceeds are unlimited at or below 60% LTV. Above 60%, the portfolio program caps cash-in-hand at $1,500,000. The bank program has no published cap, though above $4,000,000 each file is still case by case. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Interest-only is a structure choice, not a leverage boost. On the portfolio program it runs to 85% LTV with a 700 credit floor on purchase and rate-and-term files, with a 40-year term and a ten-year interest-only period. On the bank program it stops at 60%, using five- and seven-year fixed-period adjustables. It never raises a cash-out ceiling. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
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.
Where Does the General Rule Break?
Four edge cases cause most of the surprises on these refinances.
Investment property in your own name. 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. The label alone does not decide it. Compliance commentary notes that the “investment” label does not exempt a loan automatically, and that occupancy, purpose and unit count drive the treatment. A rental inside a private bank jumbo can often be priced two ways: on bank statements or on property cash flow. Select lenders in the network also review coverage below 1.00, with leverage and terms adjusting. Price both paths.
Primary residence or second home. Property cash flow is not the lens here. Bank statements, full documentation, or the asset paths are the realistic options.
Asset-based qualification. An asset allowance divides liquid assets by 36, 60 or 84 months to supplement income, and it applies to primary and second homes at 80% maximum. Assets-only needs no debt-to-income when U.S. liquid assets equal 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 59½ and over. Business funds, gifts, cryptocurrency and unvested stock never count.
Property type. Warrantable condos run to 85% leverage and non-warrantable condos to 80%. Condotels run 75% on a purchase and 65% on a cash-out, and 50% on the bank program. Second homes are one-unit only. Rural property is capped at 80% on ten acres or less, and never above $3,000,000. A Texas 50(a)(6) home-equity loan takes a five-point leverage reduction and stops at $3,000,000 on the portfolio program. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Should You Leave the Private Bank?
Leaving is worth it when the current structure no longer fits the income, or when a reset is near. It is not worth it automatically. The relationship pricing you give up can be real, and the break-even should count it.
Weigh these before deciding:
- The cost of exiting any deposit or asset-management arrangement tied to the loan.
- The prepayment terms and the interest-only or balloon date on the current note.
- Whether your income documents differently on statements than on returns.
- Whether a cash-out need exists now, because the cash-out column carries lower leverage than rate-and-term.
- Whether a rental in your name belongs in a separate property-level loan.
The wholesale advantage is comparison. One lender may weigh deposits generously and another may price the property better. A broker places the file where the structure fits. For the fuller picture of income lenses, see the complete DSCR loans guide.
Where Do These Files Get Stuck?
Most delays come from documentation, not credit. Watch these items:
- Transfers that cannot be traced to a source.
- Business statements with less than the required ownership share.
- Reserves that rely on cash-out proceeds above the super-jumbo line.
- Appraisals that land below the value the leverage tier assumed.
- Credit events inside the seasoning window.
When the appraisal comes in low, the leverage tier can drop with it. A reconsideration request with in-neighborhood sales is a normal step. Size the file at the lower value first, so the numbers still work.
Frequently Asked Questions
Can a private bank jumbo be refinanced with bank statements if I am a W-2 earner with a business on the side?
Often, yes, if the business owns the deposits you are using. If you draw only part of the profit, personal statements with regular transfers from the business may show the income more cleanly.
Do personal or business statements work better?
It depends on how the money moves. Personal statements count business transfers in full. Business statements apply a fixed expense ratio of 20%, 40% or 50%, or an accountant’s ratio. Running both is the quickest way to see the difference.
What credit score do I need?
The portfolio program floor is 660, the bank program is 680, and files above the super-jumbo line need 700. Larger balances usually need higher tiers, and the leverage ladder ties credit to size. Every figure is subject to full underwriting.
Can I refinance if I have no traditional income documentation at all?
The bank statement path is built for borrowers whose returns understate income. P&L-only and asset-based paths also exist, subject to lender guidelines. A rental property can instead qualify primarily on property-level rental income covering the payment.
Where is this available?
Lendmire’s consumer mortgage lending is licensed in 16 states: AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA and WA. Borrowers outside those states should confirm availability before starting a file.
For the cap structure on larger balances, read Lendmire’s overview of super jumbo cash-out refinance loan limits.
The strongest refinance files are the ones where the statements, the appraisal and the reserves all tell the same story before the underwriter reads the first page.
For current guidelines and terms, see Lendmire’s super jumbo bank statement loan programs page.
Self-employed borrowers can compare both super jumbo programs on Lendmire’s self-employed mortgages page.
About Lendmire
A non-QM mortgage broker (NMLS# 2371349), Lendmire arranges bank-statement and DSCR financing for self-employed borrowers and real estate investors, with consumer mortgage lending licensed in 16 states. Because bank-statement deals are qualified on eligible deposits rather than tax-return income, the structure suits self-employed buyers and entity-owned portfolios. Lendmire places loans through wholesale investor lenders; it is not a direct lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. SuperMoney, Jumbo Loans for Self-Employed
2. CFPB ATR/QM Small Entity Compliance Guide
4. Compliance Alliance, Regulation Z and Investment Properties
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: Super Jumbo Bank Statement Cash-Out After a Private Bank Decline · How to Cash-Out Refinance a Super Jumbo Home as a Private Bank Client · How to Cash-Out Refinance a Super Jumbo Acreage Property on Bank Statements
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
Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.