The Quick Read: A bank statement jumbo loan lets a self-employed or high-income borrower qualify on twelve or twenty-four months of bank deposits, after an expense ratio, instead of traditional personal-income documentation, and it can finance a balance above the conforming limit through select wholesale programs, subject to full underwriting.
- Qualifying income is eligible deposits divided by the statement months, reduced by an expense ratio.
- Through select wholesale programs, loans run from $300,000 to $30,000,000, and every loan above $4,000,000 is reviewed case by case before submission.
- Leverage steps down as the loan grows, and second homes and investment property run about five points lower than a primary residence.
- A pure rental that the borrower will not live in usually fits a DSCR loan better, because the property carries the file.
Savannah sits in Georgia, one of the 16 states where Lendmire’s consumer mortgage lending is licensed. The mechanics below are national and apply the same way to a Savannah purchase as to any other file in those states.
Two Questions in One Loan Name
“Bank statement” describes how income is documented. “Jumbo” describes how large the loan is. They are separate questions that happen to land on the same file.
A bank statement loan swaps traditional personal-income documentation for deposit history. A jumbo loan is any mortgage above the county conforming limit. A borrower can have one without the other. Many bank statement loans are smaller than the jumbo line. Many jumbo loans are documented with returns and pay stubs.
The two combine when a founder, physician, attorney, entertainer, or investor wants a large balance and their traditional personal-income documentation shows less income than they actually earn. Write-offs, depreciation, and retained business earnings all shrink the number on a return. Deposits tell a different story.
Key Terms Defined
Jumbo loan: A mortgage larger than the conforming limit for the county where the property sits.
Bank statement loan: A mortgage that qualifies income from twelve or twenty-four months of consecutive bank statements instead of traditional income documentation.
Expense ratio: The share of business deposits treated as operating cost, so only the remainder counts as income.
Debt-to-income ratio (DTI): Monthly debts, including the new payment, divided by qualifying monthly income.
Reserves: Liquid funds left after closing, counted in months of the full housing payment.
Non-QM: A loan that falls outside the standard qualified mortgage box and is underwritten under its own guidelines.
What Counts as Jumbo?
The conforming limit is the most that Fannie Mae and Freddie Mac may buy, and it is set each year. The baseline one-unit limit rose to $832,750, up from $806,500 the year before, and the high-cost ceiling is $1,249,125, according to Orrick’s summary of the FHFA announcement. The limit does not fall when prices fall.
Some web pages still show the older $806,500 figure. Check the county limit before you assume a loan is jumbo or conforming. One county can be conforming and the next can be jumbo.
That limit only marks where agency eligibility ends. It does not cap what a non-QM program can lend. Above it, each lender or its investor sets its own guidelines, which is why the wholesale network matters. A broker sees many sets of guidelines and places the file where the fit is best.
How Underwriting Treats the Statements, Step by Step
The process is mechanical. Each step below is where a file either stays clean or picks up questions.
1. Pick the statement basis. The borrower chooses personal or business statements, and twelve or twenty-four months. A bank portfolio program in the network uses twelve months. Statements must be consecutive. A transaction history printout never substitutes for statements.
2. Screen the deposits. The underwriter reads each month. Transfers between the borrower’s own accounts, loan proceeds, and one-time unexplained deposits come out. Large or irregular deposits draw a written explanation request.
3. Count business-to-personal transfers. On the programs in the network, transfers from the borrower’s own business into a personal account count in full.
4. Apply the expense ratio. This step applies to business statements. Business accounts need at least 25% ownership. Most programs use a fixed ratio: 20% for a service business with no employees, 40% for one to five employees, and 50% for six or more employees or any business that sells a product. An accountant-provided ratio can replace the fixed one. A profit-and-loss method exists too, capped at 80%.
5. Divide by the months. Eligible deposits, after the expense ratio, are divided by the statement months. The result is qualifying monthly income.
6. Test DTI. The new payment and all other debts are measured against that income. DTI runs up to 50% through select wholesale programs.
7. Review credit, assets, and reserves. Credit and reserves are reviewed as in any full-file underwriting. Larger loans bring more reserve months.
8. Order the appraisal. Bigger balances bring tighter appraisal review. The property type decides the form, such as a single-family report, a multi-unit report, or a condo review.
A Worked Income Example
Take a consultant with no employees who runs twenty-four months of business statements. Total deposits are added up. Owner transfers and a one-time loan deposit are removed. The remainder is divided by 24. The 20% fixed ratio is then applied, so 80% of that monthly average counts as income.
Now take a contractor with eight employees. Same statements, same removals, but the fixed ratio is 50%. Only half of the monthly average counts. The accountant-provided ratio is the lever here. If a CPA documents a lower expense load, the counted share goes up. Lendmire’s piece How to Write a CPA Letter for a Super Jumbo Bank Statement Loan walks through that letter in detail.
A borrower who uses personal statements and moves business profit into a personal account every month often gets the cleanest read. Those transfers count at 100%. Mixing business and personal money in one account muddies the treatment and invites questions.
| Statement type | Expense treatment | Common friction |
|---|---|---|
| Personal | Business transfers count in full | Non-income credits must be stripped |
| Business | Fixed 20%, 40% or 50%, or CPA ratio | 25% ownership minimum, expense ratio choice |
| Profit-and-loss path | Capped at 80% | Needs a preparer who supports the numbers |
Size and Leverage: The Ladder
Leverage steps down as the loan gets larger. The figures below are ceilings through select wholesale programs, subject to full underwriting and credit tier.
On a primary-residence purchase, leverage typically tops out at 90% up to $1,000,000, 85% up to $2,000,000, and 80% up to $3,000,000. Between $3,000,000 and $4,000,000, a primary-residence purchase reaches 75% at the top credit tier. Above $4,000,000, everything is reviewed case by case before submission. On review, a bank portfolio program in the network works on a ladder of 65% to $5,000,000, 60% to $10,000,000, and 55% to $30,000,000.
Second homes and investment property run about five points lower at every size. Second homes are one-unit only.
Cash-out sits lower than purchase. On a primary residence, cash-out reaches 80% at the smaller sizes and drops as the balance grows. On the portfolio non-QM program, cash-out is unlimited at or below 60% LTV, with a $1,500,000 cash-in-hand cap above 60%. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Interest-only is available on some files. The portfolio program allows it to 85% LTV with a 700 credit floor, on a 40-year term with a ten-year interest-only period. The bank program allows it at 60% or the band’s ceiling, whichever is lower. Interest-only is a payment structure on purchase and rate-term files. It never raises a cash-out ceiling. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Credit, Reserves, and the Super-Jumbo Line
The credit floor is 660 on the portfolio program and 680 on the bank program. It rises to 700 above the super-jumbo line, which sits at $3,500,000 on a primary residence and $3,000,000 on a second home or investment property.
Reserves scale with size. Most files need 3 months up to $500,000, 6 months up to $1,500,000, and 9 months above that. Each additional financed property adds 2 months, up to a 12-month maximum, and first-time investors carry 12 months. Cash-out proceeds cannot satisfy reserves above the super-jumbo line.
Above the super-jumbo line the overlays tighten. Expect a 0x30x24 housing history, 48-month seasoning on any credit event, U.S. citizen or permanent resident status, no non-occupant co-borrowers, and no rural property. Acreage tops out at ten acres.
Asset-Based Paths for Borrowers Whose Deposits Are Thin
Some high-net-worth borrowers hold wealth in portfolios, not in business deposits. Two asset paths exist on primary and second homes.
Asset allowance divides liquid assets by 36, 60, or 84 months to produce monthly income. The 36-month version supplements income when DTI is at or below 60%. The 60-month version applies above 60%. The 84-month version works standalone or on any loan above $3,500,000. The maximum is 80% LTV. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Assets-only qualifies with no DTI test. U.S. liquid assets must equal the loan amount, closing costs, and 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, unvested stock, cryptocurrency, and most trusts do not count. A revocable living trust is the exception.
Where the General Rule Breaks
The mechanics above hold for most files. These edge cases are where they bend.
Occupancy changes the product. Bank statement programs can fund a primary home, a second home, or an investment purchase. Investment leverage is lower. If the property is a rental the borrower will not occupy, a DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines, and personal debts stay out of the DTI test. Sub-1.00 coverage is available through select lenders in the network, but LTV and terms adjust.
Lumpy or declining deposits. Averaging drags down income when the last few months are weaker than the first. A seasonal business can look softer than it is. The twelve-month window versus the twenty-four-month window can swing the result, so run both before choosing.
Many mortgages on the personal credit report. Because a bank statement loan tests the borrower, existing mortgages count in DTI. A portfolio investor with a long list of financed properties can hit the 50% ceiling. DSCR avoids that test.
Condos and condotels. Warrantable condos go to 85% and non-warrantable to 80%. Condotels run 75% on a purchase and 65% on a cash-out, and 50% on the bank program. Lendmire’s piece Warrantable Condo Leverage on a Super Jumbo Bank Statement Loan covers that file type.
Multi-unit and rural. Two-to-four-unit properties reach 85%. Rural property goes to 80% on ten acres or less and never above $3,000,000.
Texas home-equity loans. A Texas 50(a)(6) loan takes a 5-point LTV reduction and stops at $3,000,000 on the portfolio program.
Coastal and historic homes. Flood zone status, insurance availability, and unusual construction can change appraisal and review. Order the insurance quote early, because it affects the full monthly payment used in DTI.
Non-QM Is Regulated, Not Unregulated
Non-QM does not mean no rules. It means the loan sits outside the qualified mortgage safe harbor. The lender must still make a reasonable, good-faith determination that the borrower can repay. The CFPB’s ability-to-repay assessment report says the agency expected a robust and sizable market for loans beyond the 43 percent threshold.
That is why the phrase no income verification misleads. Income is verified through deposits. The borrower documents income through the statements, and the lender documents the repayment decision. Programs differ because the rules do not fix how much income supports a given level of debt. Each program sets its own guidelines.
Which features appear depends on the program. The programs placed through Lendmire’s network follow their own published guidelines, so read the term sheet for the exact structure.
Which Path Fits? A Decision Table
| Situation | Usual fit | Why |
|---|---|---|
| Self-employed buyer, primary home, conventional personal-income paperwork understates income | Bank statement | Deposits show real earnings |
| Large liquid portfolio, thin business deposits | Asset allowance or assets-only | Assets become qualifying income |
| Pure rental, borrower will not live there | DSCR | Property income carries the file |
| W-2 earner with a clean return | Full documentation | Often the most direct path |
| Strong deposits, high existing debt load | Compare bank statement and DSCR | DTI can limit one and not the other |
Many borrowers fit more than one row. A broker prices the same scenario across programs and shows the tradeoff. Lendmire’s complete DSCR loans guide covers the rental side in full.
What a Clean File Looks Like
Clean documentation is the whole game on these files. Gather these before submission:
- Twelve or twenty-four consecutive statements, every page, for each account used.
- Proof of ownership share for business accounts, at least 25%.
- A CPA letter or expense-ratio support, if you are arguing for a ratio below the fixed one.
- Written explanations for large or one-time deposits.
- A clear separation between business and personal accounts.
- Liquid asset statements for reserves, with retirement accounts shown at their counted value.
- Property documents: insurance quote, condo questionnaire where it applies, and the purchase contract.
Common reasons files stall are missing pages, unexplained transfers, mixed accounts, a business ownership share under 25%, and reserves built from funds that do not count. Cash-out proceeds that were meant to cover reserves cause the same problem above the super-jumbo line. Fix each one before submission, not after.
One more point on the tradeoff. Alternative documentation carries more review and tighter reserves than a full-doc file. That is the cost of qualifying on deposits. Whether the extra cost makes sense depends on how far the tax return understates income and how large the loan is.
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.
Frequently Asked Questions
Do I need standard personal-income documentation for a bank statement jumbo loan?
No, not on the bank statement path. Income is reviewed on twelve or twenty-four months of consecutive statements under the applicable program, subject to lender guidelines. A CPA letter may still be used to support a lower expense ratio.
How is income calculated from my statements?
Eligible deposits are added, non-income credits are removed, and the total is divided by the number of statement months. Business accounts then take an expense ratio of 20%, 40%, or 50%, or an accountant-provided ratio. Transfers from your own business into a personal account count at 100%.
What is the maximum leverage on a jumbo bank statement loan?
It depends on size, occupancy, and credit tier. A primary-residence purchase reaches 90% up to $1,000,000, 85% up to $2,000,000, and 80% up to $3,000,000, through select wholesale programs. Above $4,000,000, leverage is reviewed case by case before submission, and second homes and investment property run lower than primary residences.
Is a bank statement loan better than DSCR for a rental property?
Usually not for a pure rental. A DSCR loan is reviewed primarily on property-level rental income covering the payment, so personal DTI does not limit the file. A bank statement loan fits better when you plan to occupy the home, or when personal deposits are strong and rental coverage is thin.
Does this apply to a purchase in Savannah?
Yes. Savannah is in Georgia, one of the 16 states with consumer mortgage lending through Lendmire. Local property specifics, such as flood zone status, condo questionnaires, and coastal insurance, are reviewed at the property level.
Next Step
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. Programs change, every file is underwritten individually, and nothing here is a commitment to lend.
Lendmire’s self-employed mortgages page presents both super jumbo programs, bank statement and DSCR, side by side.
About Lendmire
Lendmire is a DSCR-focused mortgage brokerage, NMLS# 2371349, placing investor loans across 41 markets, including Washington, D.C. DSCR eligibility is generally reviewed by the lender around a property’s rental income rather than personal income documentation, which fits LLC-held rentals, self-employed investors, and portfolios scaling past conventional financed-property limits. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Orrick Infobytes: FHFA announces conforming loan limit increases
2. CFPB: CFPB Ability to Repay Qualified Mortgage Assessment Report
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 Much Can You Borrow With a Super Jumbo Bank Statement Loan? · Can a Practice Owner With Low Returns Get a Jumbo Bank Statement Loan? · How a La Jolla Bank Statement Jumbo Loan Works
Guides: Super Jumbo Bank Statement Loans in Savannah, GA · Super Jumbo Bank Statement Loans in Georgia
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.