The Quick Read: A non-warrantable condo on a super jumbo bank statement loan is valued in layers: a full appraisal of the unit, a read of the building’s finances and rules, and often a second opinion as the balance grows, with the loan sized off the lower value. Your deposits are tested on a separate track. Strong deposits do not rescue weak collateral, and a strong building does not fix thin income.
- The appraisal sets the value, even when income comes from bank statements instead of traditional personal-income documentation.
- The building is reviewed along with the unit, and its problems can lower value, leverage, or both.
- When two values exist, the lender sizes the loan off the lower one. It does not average them.
- Through select wholesale programs, non-warrantable condos are typically held to 80% LTV, and the size ladder for your occupancy still applies.
- A short appraisal shrinks the loan, so plan the gap in cash before you go to contract.
Key Terms Defined
Non-warrantable condo: a condo project that fails standard agency eligibility, so the loan has to come from a portfolio or non-QM program instead.
Bank statement loan: a loan where qualifying income is built from 12 or 24 months of deposits, after an expense ratio, rather than from traditional personal-income documentation.
Super jumbo: a loan far above conforming limits. There is no official line, so each program draws its own, and this network’s overlays begin above $3,000,000 to $3,500,000 depending on occupancy.
Appraisal: a licensed appraiser’s written opinion of what the unit is worth, based on comparable sales and the condition of the unit and project.
Review appraisal: a second look at value, either a desk or field review by a reviewer or a full second appraisal by a new appraiser.
Comparable sales (comps): recent sales of similar units that the appraiser uses to support a value conclusion.
Reconsideration of value: a written request asking the appraiser to reexamine the value, usually with better comps or corrected facts.
Expense ratio: the share of business deposits the lender removes to reflect operating costs before counting the rest as income.
Why Does a Non-Warrantable Label Change How Value Is Checked?
Because the label is about the building, not you, and the building drives marketability. A lender will not only ask what this unit sold for last month. It will ask what a buyer could finance when the lender has to sell it later.
A condo turns non-warrantable for project-level reasons. Common triggers include heavy investor concentration, one owner holding too many units, litigation, weak reserves, delinquent dues, commercial space, or hotel-style rental management. Some of these make the building harder to insure. Others make it harder to resell to buyers who rely on standard financing.
That is why a non-warrantable unit can appraise differently from a nearly identical unit in a warrantable building. The buyer pool is narrower, and the appraiser has to account for that when choosing comps and making adjustments.
Non-warrantable does not mean unfinanceable. It means non-agency. Portfolio and non-QM programs exist for these buildings, and across the wholesale network they usually trade a cleaner project for lower leverage and tighter reserves. Lendmire’s piece Non-Warrantable Condos and the Super Jumbo Bank Statement Loan covers that program fit in more detail.
The Two Tests: Income and Property
Income and collateral are tested on separate tracks, and a file must pass both. The deposits prove you can repay. The appraisal and project review prove the condo is worth what you are paying.
| Check | Income test | Property test |
|---|---|---|
| What it measures | Ability to repay | Value and marketability |
| Main evidence | 12 or 24 months of statements | Appraisal, project documents |
| What can move it | Expense ratio, deposit patterns | Comps, building condition, liens |
| What it changes | Qualifying income, DTI | Value, loan size, leverage |
On the income side, qualifying income is eligible deposits divided by the statement months, after an expense ratio. Typical programs use fixed ratios of 20%, 40%, or 50% depending on business type and staffing, or an accountant-provided ratio. Transfers from your own business into your personal account count in full. Debt-to-income can run up to 50% through select wholesale programs, subject to full underwriting.
A bank statement loan replaces personal income documentation. It does not replace valuation. Nothing about how you document income tells the appraiser what the unit is worth.
An investor who prefers to qualify on the property’s rent has a parallel route. A DSCR file qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. The appraisal still sets the value there, and a rent schedule from the appraiser becomes part of the package. Both routes end at the same collateral review. Lendmire’s complete DSCR loans guide explains how the rent-based route works.
What Does the Appraiser Review in the Unit and the Building?
The appraiser values the unit and reports on the project around it. A condo is worth what its unit offers plus what its building allows. So the report covers both.
On the unit, the appraiser describes size, layout, view, floor, condition, and upgrades. On the building, the appraiser notes the project name, the monthly assessments, any special assessments, the common areas and amenities, and how the project compares with competing buildings. The standard condo appraisal form also asks the appraiser to describe unusual project characteristics and their effect on value and marketability.
The appraiser reports these facts and what they do to value. The appraiser does not decide whether the building is warrantable. That call belongs to the lender’s project review, which looks at the HOA budget, reserves, delinquencies, insurance, litigation, and ownership mix.
The two reviews connect. If the project review flags an unfunded special assessment, the appraiser’s value conclusion should reflect it. If the appraisal reveals that most recent sales were investor-to-investor, the lender’s project review will want to know why.
How Do Appraisers Handle Scarce Comps in a Non-Warrantable Building?
They look first inside the building, then widen the search. HousingWire explains that in high-rise markets the best comparable may be a unit in the same building, and that condo appraisal analyzes both the unit and the project. Resales inside the project are usually the cleanest evidence of what buyers will pay for that building’s specific mix of flaws and benefits.
The squeeze comes when the building has few recent sales. The appraiser then pulls comps from similar projects nearby. If those buildings are warrantable, the appraiser may adjust for the difference in financing eligibility. If they are not, the appraiser may use investor-heavy buildings as proxies. Either way, the adjustment is a judgment call, and it can lower value.
Unusual or luxury units face a related problem. A one-of-a-kind penthouse has few true comps, so the lender may add a field review, desk review, or broker price opinion. That is a precaution against over-reliance on a thin sales record.
Here is where a strong file helps. The loan officer or broker can ask whether the appraiser has condo project experience, and can supply the lender with in-building sales history and any building-specific facts that affect value. A well-supported appraisal is harder to dispute later.
When Does a Second Appraisal or Review Apply, and Which Value Governs?
A second valuation becomes more likely as the balance and the complexity of the file rise, and the lower of the values governs. There is no universal federal trigger for a second appraisal. It is a program overlay, and the trigger point differs from lender to lender.
The valuation stack on a typical file looks like this.
| Step | Who does it | What it tests | What it can change |
|---|---|---|---|
| Project review | Lender | Building finances, ownership mix | Eligibility, leverage |
| Appraisal | Licensed appraiser | Unit value, project impact | Value |
| Review product | Reviewer or second appraiser | Whether value holds | Value |
| Reconciliation | Lender | Which value to use | Loan size |
A lender-staff review is the lighter option. A full second appraisal by a different appraiser is the heavier one. Both are ordered by the lender, and the borrower typically pays for the appraisal work.
When two values exist, the loan is sized on the lower one. The lender does not average them, and it does not pick the value that happens to match your contract price. If the review comes in under the first appraisal, the lower number controls LTV, loan amount, and any cash-out.
Size matters on the program side. The portfolio non-QM program carries files to $6,000,000, and the bank portfolio program carries twelve-month-statement files to $30,000,000 on its own ladder. Above $4,000,000, every file is reviewed case by case before submission, and that review includes the valuation plan. Do not assume the smaller-loan process carries over to a file that size.
What Project Documents Feed the Value?
Gather the project documents before you go to contract, because they are what the lender and appraiser use to judge the building. Missing HOA documents can stall or stop a file, and weak ones can steer leverage down.
| Document | What it tells the lender |
|---|---|
| HOA budget | Whether dues cover operating costs |
| Reserve balance | Whether the building can fund repairs |
| Delinquency report | How many owners are behind on dues |
| Insurance certificate | Whether the building is adequately covered |
| Litigation letter | Whether a suit affects structure or safety |
| Condo questionnaire | Ownership mix, rental percentage, commercial space |
| Meeting minutes | Planned assessments, disputes, deferred work |
Special assessments deserve extra attention. A lender wants to know why the assessment was imposed, whether it funds critical repairs, how much remains unpaid, whether delinquent owners threaten the plan, and whether your share comes due before or after you buy. An assessment that funds a roof is a different risk than one that covers a lawsuit settlement.
Non-QM underwriting often treats these findings as inputs to leverage and reserves instead of automatic declines. A building with a manageable flaw may still work at lower leverage. A building with several flaws may not.
Where the General Rule Breaks
The lower-value rule and the two-track rule hold across most files, but several situations bend them.
The reason for the label matters more than the label. A building that is non-warrantable only because of investor concentration is a different file from one tied up in litigation over structure. The first may be a simple leverage adjustment. The second can end the deal. Confirm the exact reason before you spend on an appraisal.
Condotels and rental-heavy projects face lower ceilings. Through select wholesale programs, condotels are typically capped at 75% LTV on a purchase and 65% on a cash-out, and 50% on the bank portfolio program. That is well under the 80% cap for an ordinary non-warrantable condo.
Recent listing history can trigger extra review. A property that was listed within about six months before the transaction may get more scrutiny on some programs, especially if the price jumped.
A warrantable building can become non-warrantable. A new special assessment, a lawsuit, or a rise in investor ownership can flip the status. That affects the next buyer’s ability to finance, which is a resale risk you take on as the owner.
Super-jumbo overlays stack on top. Above $3,500,000 on a primary residence, and above $3,000,000 on a second home or investment property, the network’s overlays add a 700 credit floor, a 0x30x24 housing history, 48-month seasoning after any credit event, and cash-out proceeds that cannot satisfy reserves. A non-warrantable condo at that size faces both the project review and these overlays, so it is reviewed case by case on the leverage question.
Cash-out tests the same value. On the portfolio program, cash-out carries a $1,500,000 cash-in-hand cap above 60% LTV. A low value cuts the proceeds along with the loan. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
What Happens If Value Comes In Short?
The loan shrinks, and you either bring cash, renegotiate, or change the deal. The lower value drives everything, so the response should start the day the value arrives.
| Option | Effect on the loan | When it fits |
|---|---|---|
| Reconsideration of value | May raise value if comps support it | The appraiser missed better in-building sales |
| Renegotiate price | Moves contract toward value | Seller has room, market is soft |
| Bring more cash | Keeps the price, cuts LTV | You want the unit and have liquidity |
| Different unit or building | Resets the whole file | The project has deeper problems |
| Different program | May change leverage and review | Another program treats the project better |
Here are three modeled scenarios, using percentages only. They are illustrations, not a quote or a commitment to lend.
A clean pass. A non-warrantable condo is bought as an investment property. The appraisal supports the contract price, the building has modest flaws, and the program allows 80% LTV on a purchase. The loan is 80% of price, and the down payment is the remaining 20%. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
A short-appraisal rescue. The same purchase appraises 5% below contract price. The lender sizes off the lower value, so 80% of that value equals 76% of the contract price. Cash needed rises from about 20% to about 24% of the price. If the appraisal misses by 10%, the loan falls to about 72% of price, and cash needed rises to about 28%. The gap comes out of your pocket, unless the seller agrees to cut the price or reconsideration changes the value.
A thin-comps file. A luxury unit sits in a building with few recent sales. The appraiser leans on comps from other buildings and makes adjustments for the non-warrantable status. The lender adds a review product, and the lower value governs. The loan officer’s work here is to supply in-building history and building facts early, so the first appraisal is well supported.
Reserves can shift too. Through select wholesale programs, reserves run 3 months to $500,000, 6 months to $1,500,000, and 9 months above that. A lower loan amount can move you into a lower reserve band. Programs differ, and every file is underwritten individually.
Your Right to See Every Valuation
On a first-lien dwelling loan, the lender must give you a copy of every appraisal and other written valuation developed for your file. The CFPB’s Regulation B appraisal rule sets the delivery timing as promptly on completion or three business days before consummation, whichever is earlier. The Federal Reserve’s version of the rule adds that the copy itself is free, although the lender may charge a reasonable fee for the appraisal work. The rule applies even if the loan is denied or withdrawn.
In practice, that means a review product developed for the credit decision is something you can request. If the file dies after a second appraisal, you still get both reports.
Before You Make an Offer
Early diligence is cheap compared with a failed appraisal. Before you go to contract on a non-warrantable condo:
1. Ask the seller or listing agent for the HOA budget, reserve balance, insurance certificate, litigation letter, and rental-percentage data.
2. Confirm exactly why the building is non-warrantable, and whether that is the only issue.
3. Pull in-building sales history so the appraiser has the cleanest comps.
4. Ask your broker whether the program for your loan size adds a second valuation, and who orders it.
5. Decide in advance how much appraisal-gap cash you can bring, and whether you would walk instead.
6. Confirm your occupancy ladder, because a primary residence, a second home, and an investment property each carry different leverage ceilings.
Tax treatment varies by borrower and property; consult a qualified tax professional before relying on any deduction. If the property will be a short-term rental, short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income.
Lendmire’s article Warrantable Condo Leverage on a Super Jumbo Bank Statement Loan is a useful contrast, since it shows what a cleaner building does for the numbers.
Frequently Asked Questions
Can a non-warrantable condo get a super jumbo bank statement loan?
Yes, through select wholesale programs, subject to full underwriting. Non-warrantable condos are typically held to 80% LTV, and the size ladder for your occupancy applies on top of that. Whichever cap is lower governs. Above $4,000,000, the file is reviewed case by case before submission.
Is the non-warrantable label about me or the building?
It is about the building. Your credit, deposits, and reserves are tested separately. A strong borrower can offset some project risk through lower leverage and reserves, but project-level problems can still end a file.
Will there be one appraisal or two?
It depends on the program and the loan size. Many programs add a second appraisal or review as balances rise or when a unit is unusual. The trigger is lender policy, not federal law, so ask your broker which applies to your file before you order anything.
Can I contest a low value?
Yes, you can ask for a reconsideration of value, and the request works best when it includes better comps or corrected facts, especially sales from inside the building. The appraiser is not obligated to change the number. If the value stands, you can renegotiate, bring cash, or look at a different property.
Does bank statement income change how the unit is valued?
No. The appraiser values the collateral the same way whether you qualify on deposits, assets, or rent. Your income method affects qualifying income and debt-to-income, not what the unit is worth.
Where to Go From Here
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. Reach the team at 828-256-2183 or request a quote through the site. Every figure above reflects typical guidelines through select wholesale programs, subject to full underwriting, and none of it 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
As a mortgage broker (NMLS# 2371349), Lendmire helps self-employed and high-net-worth borrowers in 16 states qualify on bank statements, a profit-and-loss statement, 1099s or liquid assets instead of tax returns, through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and its guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. HousingWire, Miami condo appraisals and relevant comps
2. CFPB, Regulation B § 1002.14: Rules on providing appraisals and other valuations
3. Federal Reserve, Regulation B section 1002.14: Rules on providing appraisals and other valuations
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 Qualify for a Super Jumbo Bank Statement Second-Home Loan · 12 vs. 24 Months on a Super Jumbo Bank Statement Loan With Mixed Accounts · Super Jumbo IO ARM vs Fixed Reset Options on a Bank Statement Loan
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.