The Quick Read: A non-warrantable condo can take a bank statement cash-out refinance at super jumbo size, but three separate tests decide the file: the building’s project review, the deposit-based income, and the lowest of the loan-size, property-type and cash-in-hand limits. Terms below come through select wholesale programs, subject to full underwriting.
- The condo label limits leverage less than the loan-size ladder does, except on condotels.
- Income comes from 12 or 24 months of consecutive statements after an expense ratio.
- Above $4,000,000, every file is reviewed case by case before submission.
- Cash-out proceeds cannot satisfy reserves on super-jumbo overlay files.
- The building’s paperwork carries as much weight as the borrower’s.
Key Terms Defined
Non-warrantable condo: a condo whose building or HOA fails the tests that agency buyers apply, so the loan has to sit with a non-agency lender.
Super jumbo: a loan large enough to move from standard jumbo guidelines into the overlays that start at $3,500,000 on a primary residence and $3,000,000 on a second home or investment property.
Bank statement loan: a loan that qualifies the borrower on eligible deposits over 12 or 24 months, not on tax-return income. Bankrate describes the same basic structure.
Cash-out refinance: a new loan that pays off the old one and releases part of the equity as cash to the borrower.
Expense ratio: the share of business deposits treated as operating cost and removed before income is counted.
What Are the Super Jumbo Bank Statement Cash-Out Refinance Requirements on a Non-Warrantable Condo?
The requirements fall into five groups: the building, the income, the credit and reserves, the leverage ladder, and the appraisal. Lendmire is a mortgage broker, so the lenders set final terms. Two wholesale programs carry these files.
The first is a portfolio non-QM bank-statement program, called the portfolio program below. It carries files up to $6,000,000. The second is a bank portfolio jumbo program, called the bank portfolio program below. It takes twelve-month-statement files starting above $4,000,000 and runs to $30,000,000. Between $4,000,000 and $6,000,000 either program can carry a file. Above $6,000,000 the bank portfolio program stands alone.
Across the network, the common requirements look like this:
- Credit: the portfolio program has a 660 floor up to the super-jumbo line and a 700 floor above it. The bank portfolio program keeps its own 680 floor at every size.
- Debt-to-income: up to 50%.
- Reserves: 3 months to $500,000, 6 months to $1,500,000 and 9 months above that. Each additional financed property adds 2 months, to a 12-month maximum. First-time investors need 12 months.
- Statements: 12 or 24 consecutive months. The bank portfolio program uses 12.
- Property: non-warrantable condos reach 80% on the property-type side. Condotels sit lower.
Each figure is a ceiling or floor that depends on the loan band, the occupancy and the credit profile.
How Does the Building Get Screened Before Income Is Reviewed?
The building is reviewed first or alongside the income, because a project problem can end the file no matter how strong the deposits are. The lender reads the HOA questionnaire, the budget, reserves, master insurance, litigation and ownership mix.
Common triggers include:
- too many units owned by one investor or entity
- low reserves or large special assessments
- pending litigation over structure or safety
- hotel-style operations or rental pooling
- too much commercial space
- delinquent dues across the project
Freddie Mac’s condo project feedback codes list categories such as excessive single-investor concentration, excessive commercial space, pending litigation and segmented ownership. Non-agency lenders read buildings along similar lines.
Status can also change over time. One more rental can tip a building past a lender’s investor-concentration limit, and that can leave resale buyers facing financing hurdles. Both facts matter to a lender sizing a cash-out against future exit value.
Not every problem weighs the same. Safety and structural suits are the heaviest. Minor insured claims are often tolerated by some programs and not others, which is why a broker who sees many guidelines can match the building to the program.
How Is Bank Statement Income Built on a Refinance?
Income is eligible deposits, divided by the statement months, after an expense ratio. Start with the account type and work down.
1. Choose the window. Use 12 or 24 consecutive months of personal or business statements. Transaction histories do not substitute for statements.
2. Confirm ownership. Business statements need at least 25% ownership in the business.
3. Strip non-income deposits. Remove loan proceeds, internal transfers and one-time items that are not earnings.
4. Apply the expense ratio. The fixed ratios are 20% for a service business with no employees, 40% for one to five employees, and 50% for six or more employees or any product business. An accountant-provided ratio is also accepted, and a profit-and-loss method is capped at 80%. Bankrate notes that business type, employee count and a physical location all help set the factor, and that some bank statement loans carry prepayment penalties.
5. Divide by the months. The result is monthly qualifying income, which feeds the debt-to-income test against the 50% ceiling.
Transfers from the borrower’s own business into a personal account count at 100%, because the expense ratio was already taken at the business level. A borrower with a six-employee firm and a 50% ratio keeps half of the average monthly deposits as income. That ratio is a lender convention, so an accountant-provided ratio can change the result.
What Sets the Cash-Out Amount?
The lowest limit wins. Four limits apply at once: the loan-size ladder, the property-type cap, the cash-in-hand cap and the credit-tier cell you land in.
On a non-warrantable condo, the ladder usually binds before the condo label does. The property-type cap is 80% through select wholesale programs. The best cash-out cell on the ladder also reaches 80%, but only on a primary residence with a loan amount up to $1,500,000. Everywhere else the ladder sits lower.
The bands apply to the loan amount, not the purchase price. Work out the loan first, then read the band.
Here are cash-out ceilings from the ladder, subject to underwriting:
- Primary residence, $1,500,000 to $2,000,000: 75%.
- Primary residence, $2,000,000 to $3,000,000: 70%.
- Second home or investment property, $2,500,000 to $3,000,000: 60%.
- Primary residence, $3,500,000 to $4,000,000: 65% on the portfolio program.
- Primary residence, $4,000,000 to $5,000,000: 60%, reviewed case by case on the bank portfolio program.
Picture a primary-residence owner with a condo loan in the $2,000,000 to $2,500,000 band. The condo cap allows 80%, but the cash-out ladder stops at 70%. The ladder governs, and the condo label changes nothing.
Now picture a condotel. It reaches 65% on cash-out on the portfolio program and 50% on the bank portfolio program. Here the property type is the binding limit.
Then there is cash-in-hand. On the portfolio program, proceeds are unlimited at or below 60% LTV. Above 60%, cash in hand is capped at $1,500,000. The bank portfolio program has no published cap. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Interest-only terms do not change any of this. The interest-only ceiling applies to purchase and rate-and-term files and never raises a cash-out ceiling. Seasoning rules on a recent purchase or prior refinance vary by program, so confirm them before ordering anything.
What Changes at Super Jumbo Size?
Overlays start at $3,500,000 on a primary residence and $3,000,000 on a second home or investment property. Once a loan crosses that line, these apply:
- a 700 credit floor on the portfolio program
- a 0x30x24 housing history
- 48 months of seasoning on any credit event
- U.S. citizens and permanent residents only
- no non-occupant co-borrowers
- no rural property, and ten acres maximum
- cash-out proceeds cannot satisfy reserves
The reserves rule is the one that catches files. A borrower who plans to count the released equity toward the 9-month requirement will find the reserves have to come from other liquid funds. Show those funds on separate statements before the file goes in.
A borrower with a lower score takes a lower leverage cell inside the same band. Above $4,000,000, every figure above is reviewed case by case before submission.
Which Documents Go in First?
Order the building documents on day one of the file, because the HOA can be slow and a questionnaire can raise a problem the borrower did not know about. Lendmire’s piece on the documents a super jumbo bank statement cash-out file needs covers the borrower side in more detail.
Borrower documents
- 12 or 24 consecutive months of statements
- proof of business existence, such as a license or accountant letter
- current mortgage statement
- hazard insurance and property tax bill
- liquid-asset statements for reserves, separate from the proceeds
- a use-of-proceeds statement and business-purpose certification on investment property
Building documents
- the completed HOA questionnaire
- the current budget and reserve figures
- master insurance evidence
- litigation disclosure
- owner and investor concentration data
If the questionnaire reveals a problem, find out whether it can be cured before the lender finds it. A delinquent-dues issue or a thin reserve study is a different problem from structural litigation.
How Does the Appraisal Affect the Number?
Value sets the maximum loan, so a light appraisal cuts the cash-out directly. Condo units are typically appraised on a unit-level report such as the Form 1073 described in the Fannie Mae Selling Guide. That form is a reference point only, since these loans are not agency loans.
The practical risk is comps. A non-warrantable building often has fewer clean sales, because buyers have fewer financing options. An appraisal reconsideration, with recent sales in the same building and condition adjustments, is a normal step when the first value comes in short.
Which Lane Fits: Bank Statements, Assets or Property Cash Flow?
The right lane depends on the borrower’s deposits, liquid assets, occupancy and the building. A broker can compare lanes across programs, while a single lender can only offer its own.
| Lane | Reviewed on | Fits when |
|---|---|---|
| Bank statements | Eligible deposits after expense ratio | Self-employed, heavy write-offs |
| Asset allowance | Liquid assets over 36, 60 or 84 months | Large liquidity, thin deposits |
| Assets-only | Liquid assets covering loan and costs | Little or no income stream |
| DSCR | Property rent covering the payment | Investment condo with strong rent |
The asset paths are for primary and second homes only. Asset allowance divides liquid assets by 36 months as a supplement, 60 months as a supplement when the pre-asset debt-to-income is above 60%, or 84 months as a standalone or on any loan above $3,500,000. Assets-only needs U.S. liquid assets equal to the loan amount plus closing costs. Retirement accounts count at 70%, or 80% at 59.5 and older. Business funds, gifts, cryptocurrency and unvested stock never count.
A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines, and it still carries the condo overlays. Use it when deposits are thin or the expense ratio is harsh, provided the rent is solid. The complete DSCR loans guide explains how that path works.
Where Does the General Rule Break?
Several edge cases change the answer.
Occupancy changes the legal frame. Primary and second-home cash-outs are consumer-purpose loans, so the lender documents repayment ability under the ability-to-repay rule in Regulation Z section 1026.43. Investor loans are designed for non-owner-occupied investment properties. Because they are business-purpose loans, they are reviewed differently from a standard owner-occupied mortgage. If the proceeds go to personal use rather than the investment business, the purpose can be questioned. Tax treatment varies; consult a qualified professional.
Second homes are one unit only. A condo qualifies as a one-unit property, but a multi-unit building does not.
Condotels and rental-pool buildings are the harsh end. Non-warrantable is a spectrum, and hotel-style operation sits at the tough end of it.
Entity borrowers differ by program. Vesting rules vary, and an LLC borrower may be available subject to program terms.
Large-balance reserves. The 9-month tier and the proceeds rule can force a borrower to hold liquidity elsewhere, which sometimes changes the size of the request.
Release size. Lendmire’s article on how much a super jumbo cash-out releases on a non-warrantable condo walks through the sizing logic in more depth.
What If the Cash-Out Does Not Work?
A decline on cash-out does not always end the plan. Options include a smaller ask that fits a lower LTV band, a rate-and-term refinance, a second lien, fixing the building issue first, or waiting for status to change. At or below 60% LTV on the portfolio program, proceeds are unlimited, so a smaller request can also remove the cash-in-hand cap. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Frequently Asked Questions
Can the released cash count toward reserves?
No on super-jumbo overlay files. Cash-out proceeds cannot satisfy reserves above $3,500,000 on a primary residence or $3,000,000 on a second home or investment property. Reserves must come from other liquid assets, documented on separate statements.
Is a bank statement cash-out a no-document loan?
No. The file is reviewed on documented income under the applicable program, subject to lender guidelines. It needs 12 or 24 consecutive months of statements, building documents and reserve evidence.
Does the non-warrantable label cut my cash-out percentage?
Rarely, for an ordinary non-warrantable condo. The property-type cap is 80%, and the cash-out ladder tops out at 80%, so the ladder usually binds first. A condotel is the exception, at 65% on cash-out on the portfolio program and 50% on the bank portfolio program.
Can a non-warrantable condo become warrantable later?
It can, if the cause is curable, such as investor concentration or low reserves. Status can flip either way as ownership and rental mix change. A cured building may open more programs, but that depends on lender review.
Who can use the asset-based paths?
Borrowers on primary and second homes. The asset allowance and assets-only options are not available on investment property, where bank statements or DSCR are the usual alternatives.
Next Steps
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. For primary and second-home cash-outs, 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. Every parameter here is available through select wholesale programs, subject to full underwriting, and none of it is a commitment to lend.
For how equity extraction works on an investment property, see Lendmire’s guide to cash-out refinance on an investment property.
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 licensed for consumer lending in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages for self-employed and high-net-worth borrowers are arranged through wholesale lenders on primary residences, second homes and investment properties; every file is underwritten by the lender under its program guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Bankrate: Bank Statement Loans
2. Freddie Mac CPA Feedback Messages
3. Fannie Mae Selling Guide B4-1.2-01
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 vs Asset-Based Cash-Out Refinance on a Non-Warrantable Condo · Super Jumbo Bank Statement Cash-Out Refinance Requirements With Twelve Months of Reserves · Super Jumbo Bank Statement Cash-Out Refinance Requirements After One Year Self-Employed
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.