The Quick Read: A bank statement jumbo loan is reviewed around twelve or twenty-four months of account deposits instead of traditional personal-income documentation, with the lender averaging eligible deposits, subtracting an expense ratio on business accounts, and testing the result against your debts, credit, and reserves, through select wholesale programs and subject to full underwriting. Sea Island here means the Georgia barrier island and the kind of high-priced coastal purchase it stands for, not a particular bank or loan product.
- Jumbo describes the loan size. Bank statement describes how income is proven. They are separate questions.
- Business-account deposits are reduced by an expense ratio. Transfers from your own business into a personal account count in full.
- Leverage steps down as the loan grows, and every file above $4,000,000 is reviewed case by case before submission.
- Credit, reserves, debt-to-income, and the property itself still have to work.
- A pure rental often fits a DSCR loan better, because that loan looks at the property’s rent instead of your income.
Why Do Island Purchases Usually Land in Jumbo Territory?
A jumbo loan is any mortgage above the conforming limit, the county-by-county cap that sets the line for standard loans. Prime barrier-island homes usually price above that line. So the loan lands in jumbo territory before income documentation even enters the picture.
The baseline one-unit limit is $832,750, up from $806,500 the year before, and the ceiling in high-cost counties is $1,249,125. Limits differ by county, so look up the figure for the county where you are buying instead of assuming one national number.
Lendmire’s piece Super Jumbo Bank Statement Loans in Sea Island covers the local angle.
Key Terms Defined
Jumbo loan: a mortgage larger than the conforming limit for the county where the property sits.
Bank statement loan: a mortgage where qualifying income comes from deposits in your bank accounts instead of traditional personal-income documentation.
Non-QM: a loan outside the standard rules for the most heavily regulated mortgage category, often because income is documented in a different way.
Expense ratio: the share of business deposits the lender assumes went to running the business, which is subtracted before deposits become income.
Reserves: liquid money left after closing, measured in months of the full housing payment.
DSCR: debt service coverage ratio, the monthly rent divided by the monthly debt service on a rental property.
LTV: loan-to-value, the loan amount as a percentage of the property’s value.
Jumbo Is Size
Bank Statement Is Proof.
The two labels answer different questions. A jumbo can be fully documented with traditional personal-income documentation. A bank statement loan can sit below the conforming limit. Many Sea Island files are both.
Why does this product exist? Founders, physicians, attorneys, entertainers, athletes, and investors often have legitimate write-offs that shrink taxable income below what actually moves through their accounts. A tax-return review sees the smaller number. A deposit review sees cash flow.
That does not make it a light-paperwork product. Across Lendmire’s wholesale network, the file still gets a full review of credit, assets, reserves, occupancy, and the property. Income is evaluated through the documentation the applicable program calls for, subject to lender guidelines.
How Underwriting Treats Your Deposits, Step by Step
Underwriting turns raw deposits into one monthly income figure. Eligible deposits are averaged over the statement window, business-account deposits are reduced by an expense ratio, and the result is tested against your debts. Here is the sequence most programs follow.
1. Pick the statement window. Most programs take twelve or twenty-four consecutive months of personal or business statements. The bank portfolio program uses twelve. Transaction histories never substitute for statements.
2. Screen the deposits. The underwriter strips out anything that is not earned income, then asks about large deposits it cannot trace.
3. Apply the expense ratio. Personal-account deposits count more directly. Business-account deposits are reduced.
4. Divide by the months. Eligible deposits divided by the statement months gives monthly qualifying income. Business statements generally require at least 25% ownership of the business.
5. Test against debts. Your personal debt-to-income ratio is part of the test. Programs in the network go to 50%.
6. Check the rest. Credit, reserves, down payment source, appraisal, and proof of ownership all follow.
The expense ratio is the step that surprises people. Through select wholesale programs, the network’s fixed ratios look like this:
| Business type | Expense ratio | Deposits counted |
|---|---|---|
| Service, no employees | 20% | 80% |
| Service, 1-5 employees | 40% | 60% |
| 6+ employees or any product business | 50% | 50% |
| Transfer to your personal account | None | 100% |
An accountant-provided ratio can replace these. A profit-and-loss method is also available, capped at 80%.
Picture a consultant with no staff and a steady twelve-month deposit history. The 20% ratio leaves most eligible deposits counted as income. Now picture a product business with the same deposits. The 50% ratio removes a much larger share of them. The same bank balance can therefore produce very different qualifying income.
The cleaner route is often personal-account transfers. If you pay yourself from the business into a personal account each month, those transfers count at 100%.
Which deposits count?
| Generally counts | Generally screened out |
|---|---|
| Client or customer payments | Transfers between your own accounts |
| Payroll or owner draws | Loan proceeds |
| Distributions from your business | Refunds and reimbursements |
| Consistent recurring income | Gifts and one-off unexplained deposits |
Deposit trend matters as much as the total. Rising or steady deposits read well. Declining deposits are a recognized red flag, and a twenty-four month window can expose a drop that a twelve-month window hides.
How Much Can You Borrow, and at What Leverage?
Through select wholesale programs, loans run from $300,000 to $30,000,000. No single program covers that whole range, and the leverage ceilings step down as the loan grows. The portfolio non-QM program carries files to $6,000,000. A bank portfolio program carries twelve-month-statement files above $4,000,000 and stands alone above $6,000,000.
These are ceilings, subject to full underwriting:
| Loan size | Primary-residence purchase ceiling |
|---|---|
| To $1,000,000 | 90% |
| $1,000,000 to $2,000,000 | 85% |
| $2,000,000 to $3,000,000 | 80% |
| $3,000,000 to $4,000,000 | 75% (top credit tier) |
| $4,000,000 to $5,000,000 | 65%, on review |
| $5,000,000 to $10,000,000 | 60%, on review |
| $10,000,000 to $30,000,000 | 55%, on review |
On a second home or an investment property, the ceilings run about five points lower at each size. Nothing above $1,000,000 reaches 90%. On a primary-residence cash-out, the best available ceiling is 80%, at loan sizes to $1,000,000.
Above $4,000,000, everything is reviewed case by case before submission. Treat every figure at that size as a starting point for review, not a promise.
Other core numbers, through select wholesale programs:
- Credit: a 660 floor on the portfolio program, 680 on the bank program, and 700 above the super-jumbo line.
- Reserves: 3 months up to $500,000, 6 months up to $1,500,000, and 9 months above. Each additional financed property adds 2 months, up to a 12-month maximum. First-time investors carry 12 months.
- Super-jumbo overlays: above $3,500,000 on a primary residence and $3,000,000 on a second home or investment property, expect a 700 credit floor, a clean 0x30x24 housing history, and 48 months of seasoning after any credit event. Borrowers must be U.S. citizens or permanent residents, with no non-occupant co-borrowers and no rural property. Acreage is capped at ten acres. Cash-out proceeds cannot satisfy reserves.
Structures and Variations
The core file has several variations. Which one fits depends on your income pattern and what you are buying.
Interest-only. On purchase and rate-term files, the portfolio program allows interest-only up to 85% LTV with a 700 credit floor. It uses a 40-year term with a ten-year interest-only period. The bank program allows interest-only up to 60%, on five- and seven-year fixed-period adjustables. Interest-only never raises a cash-out ceiling. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Cash-out. 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, and those files are reviewed case by case. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Asset paths. If deposits understate your wealth, two routes use assets instead. Asset allowance divides liquid assets by 36, 60, or 84 months to create income. It works on primary and second homes only, to 80% LTV. The 84-month version is the standalone path and applies to any loan above $3,500,000. Assets-only needs no debt-to-income test. It requires U.S. liquid assets equal to 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 59.5 and older. Business funds, gifts, most trusts, unvested stock, and cryptocurrency never count. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Property type. Warrantable condos run to 85% and non-warrantable condos to 80%. Two- to four-unit properties run to 85%, but second homes must be one unit.
Primary Home, Second Home, or Rental?
Match the product to how you will use the property. Bank statements test you. DSCR tests the property. Asset paths test your balance sheet.
| Path | What it tests | Best fit |
|---|---|---|
| Bank statement | Your deposits | Primary or second home |
| Asset allowance or assets-only | Your liquid assets | Wealth exceeds deposits |
| DSCR | Property rent vs. payment | Pure rental, entity-held |
The occupancy split matters for a regulatory reason too. 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 CFPB’s Regulation Z text treats credit to acquire non-owner-occupied rental property as business purpose. A bank statement loan on your home or second home is a consumer loan, so the lender must document your income reliably. Compliance Alliance cautions that the loan’s purpose controls, not the property, and owner-occupied rentals follow unit-count tests.
The common split is simple. Use bank statements for the home or vacation property you will occupy. Use DSCR for rentals, which qualify primarily on property-level rental income covering the payment, subject to lender guidelines.
Each financed property also adds debt to your personal ratio on a bank statement file, so scaling a portfolio strains that test. DSCR measures each property on its own rent. The full tradeoff is laid out in Lendmire’s piece DSCR Loan Vs Bank Statement Loan For Investors, and the complete DSCR loans guide covers the rental side in depth.
Where the General Rule Breaks
Most of this works the same in any market. These cases are where it stops.
Barrier-island flood insurance. Parts of the coast sit inside the Coastal Barrier Resources System, where federal flood insurance is generally unavailable. A recent law removed about 1,400 acres and 1,000 structures from the system, and those structures became eligible. Private flood coverage may be the only route in some pockets, and a private insurer can decline them. Settle the flood status and insurability before you go under contract, because a property the lender cannot get insured cannot close.
Loans above $4,000,000. Case-by-case review applies to every figure at that size. The bank program’s 65%, 60%, and 55% ladder is a framework for review, not an entitlement.
Declining deposits. A falling trend can cap the income even when the average looks fine. Sometimes the right answer is a twenty-four month window, an accountant’s expense ratio, or an asset path.
Business ownership under 25%. Business statements generally do not work below that ownership level, so personal statements or assets carry the file.
Condotels and rural land. Condotels are limited to 75% on purchase and 65% on cash-out, and 50% on the bank program. Rural property runs to 80% on ten acres or less and never above $3,000,000.
What the Decision Looks Like in Practice
Say a surgeon who owns a practice wants a second home on a barrier island. Traditional income documentation shows modest income after practice deductions. Twelve months of personal statements show steady owner draws from the practice, and those transfers count at 100%. The lender averages them, tests debt-to-income against the 50% ceiling, and checks reserves by loan size. On a second-home purchase, the ceiling runs about five points below the primary-residence figure at that size. The file qualifies or not on those numbers, plus the appraisal and flood review.
Now say an investor buys a rental on the same island and holds it in an LLC. Bank statements are the wrong tool. DSCR looks at the rent the property earns against its payment, which keeps the purchase off the investor’s personal ratio.
Here is the order that works:
1. Decide occupancy first. It sets the program and the leverage.
2. Pull twelve to twenty-four months of statements and clean up the account mix before you apply, so personal and business money are not tangled.
3. Check flood status and insurability on the property.
4. Compare programs, because ratios, windows, and overlays differ across the network.
5. Confirm reserves and documents before submission.
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.
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.
Frequently Asked Questions
Is a bank statement loan a loan with no income checks?
No. The loan is reviewed on documented income under the applicable program, subject to lender guidelines. The lender still reviews credit, debts, reserves, down payment source, and the property. Deposits are screened, and anything that is not earned income is removed.
Can I use one for a second home on the island?
Yes, through select wholesale programs. A second home must be a one-unit property. Leverage ceilings run lower than the primary-residence figure at each loan size. Pricing and available terms vary by lender, borrower profile, property type, and full underwriting review. Everything above $4,000,000 is reviewed case by case.
What if my deposits dropped last year?
A decline is a recognized red flag, and it can lower the averaged income. A twenty-four month window, an accountant-provided expense ratio, or an asset path can sometimes tell a better story. If the property will be a pure rental, a DSCR loan removes your deposits from the test.
Does flood insurance availability affect approval?
Yes. A property the lender cannot get insured will not close. Inside the Coastal Barrier Resources System, federal flood insurance is generally unavailable, so private coverage may be the only route. Resolve this before you commit.
Where can Lendmire arrange a bank statement jumbo loan?
Lendmire is a mortgage broker, not a lender. It shops multiple wholesale programs for consumer financing, and its 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. 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
A non-QM mortgage broker (NMLS# 2371349), Lendmire arranges DSCR financing for real estate investors in 41 markets — 40 states plus Washington, D.C. Because deals are underwritten primarily on property cash flow rather than personal income documentation, 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. 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: Should an HNW Executive Use IO on a Super Jumbo Bank Statement Loan? · How a Bank Statement Jumbo Loan Works in Naples · How a Super Jumbo Bank Statement Second-Home 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.