The Quick Read: You qualify by documenting twelve or twenty-four months of consecutive bank deposits, converting them to income after an expense ratio, and then fitting the full payment, loan size, credit score and reserves inside the leverage ladder that the loan amount sets. Traditional personal-income documentation stops being the income test. Deposits, assets or property cash flow take their place, subject to lender guidelines. Everything below comes through select wholesale programs, subject to full underwriting, and none of it is a commitment to lend.
Key takeaways
- Income comes from eligible deposits divided by the statement months, after a fixed or accountant-provided expense ratio.
- Leverage steps down as the loan grows, and every figure above $4,000,000 is reviewed case by case before submission.
- Credit floors run 660 to 700 depending on the program and loan size. Reserves run 3, 6 or 9 months by size.
- Occupancy matters. Primary residence, second home and investment property each have their own ladder.
- Clean statements decide most files before the credit score does.
What Counts as a Super Jumbo Bank Statement Loan?
A super jumbo bank statement loan is a very large mortgage qualified on deposit history rather than traditional personal-income documentation. “Super jumbo” has no official definition. It is a lender convention for balances well above the conforming limit.
The conforming limit is the useful starting point. The baseline for one-unit loans is $832,750, and the high-cost ceiling is $1,249,125, according to Orrick’s summary of the FHFA announcement. A county’s limit sits between those two numbers. A Michigan loan above its county limit is jumbo. Where the label becomes “super” depends on the program.
In Lendmire’s wholesale network, the line shows up as an overlay set. Those overlays apply above $3,500,000 on a primary residence and above $3,000,000 on a second home or investment property. Loans run from $300,000 to $30,000,000 through two programs:
- The portfolio program is a portfolio non-QM bank-statement program that carries files to $6,000,000.
- The bank program is a bank portfolio jumbo program. It carries twelve-month-statement files to $30,000,000 on its own size ladder. That ladder begins above $4,000,000, overlaps the portfolio program to $6,000,000, and stands alone above $6,000,000.
Lendmire is the broker. It shops both programs and places the file where the numbers fit. Consumer mortgage lending is licensed in 16 states, and Michigan is one of them.
Who This Loan Fits
It fits borrowers whose traditional personal-income documentation understates what they earn. Think founders, physicians, attorneys, entertainers, athletes and investors with heavy write-offs. Their deposits tell the real story.
It fits less well if rent has to carry the file on a pure rental. That is a DSCR question, covered further down.
Tax treatment can depend on how the funds are used and how the property is held; borrowers should keep clear records and speak with a qualified tax professional before relying on any deduction.
How Underwriting Turns Deposits Into Income
Underwriters average eligible deposits, subtract an expense ratio for business accounts, and test the resulting income against the new payment. The steps run in a set order.
1. Choose the statement type. Use twelve or twenty-four consecutive months of personal or business statements. The bank program uses twelve. Statements must be consecutive. A transaction history never substitutes for them.
2. Scrub the deposits. The underwriter removes anything that is not income. What remains is the eligible total.
3. Divide by the statement months. Twelve or twenty-four, depending on the window chosen.
4. Apply the expense ratio on business statements. The ratios are fixed at 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. A CPA-provided ratio can replace them. A profit-and-loss method is also available, capped at 80%.
5. Test debt-to-income. The full housing payment lands on that income. Debt-to-income can run to 50% through select programs.
6. Check credit, reserves and property. Each tightens at larger balances.
Here is the arithmetic in plain terms. Take a medical practice with three employees. It falls in the 40% band, so about sixty cents of every eligible deposit dollar becomes qualifying income. Add a one-time sale of an asset to the deposit total and the underwriter pulls it back out. The ratio does not change. The base shrinks.
A personal-statement version is simpler. There is no business expense ratio, but personal accounts hold more noise. Transfers between the borrower’s own accounts and refunds come out. Transfers from the borrower’s own business into a personal account count in full.
Which Deposits Count
| Deposit type | Treatment |
|---|---|
| Client or customer receipts | Counts as eligible |
| Transfers from your business to your personal account | Counts at 100% |
| Transfers between your own personal accounts | Excluded |
| Loan proceeds, refunds | Excluded |
| One-time windfalls, asset sales | Excluded or reviewed |
Business statements need at least 25% ownership. The borrower’s ownership share matters on the file, so show it with entity documents.
Personal or Business Statements?
| Factor | Personal | Business |
|---|---|---|
| Expense ratio | None applied | 20%, 40%, 50% or CPA figure |
| Ownership needed | Not applicable | At least 25% |
| Best when | Business pays you through one account | Business is stable, with clean books |
| Cleanup risk | Mixed spending and transfers | Owner draws and commingling |
If personal deposits are strong and clearly business-sourced, personal statements can avoid the expense haircut. If the business account is clean and the expense ratio is low, business statements can win. Lendmire’s team usually runs both versions before the file goes in.
A twelve-month window helps when income is rising. A twenty-four-month window helps when the last year was unusually soft but the prior year was strong. Declining deposits draw questions, so explain any drop in writing.
If your income includes pass-through earnings that were never distributed, see Lendmire’s piece Does Undistributed K-1 Income Qualify on a Super Jumbo Bank Statement Loan?.
Why These Loans Are Non-QM (and Still Fully Verified)
Bank statement loans are non-QM, which means they fall outside the standard qualified mortgage box. They are not undocumented. The CFPB’s small entity compliance guide says a lender must use reasonably reliable third-party records to verify the income and assets it relies on. Bank statements are those records.
So expect a full file. Income is reviewed on documented deposits under the applicable program, subject to lender guidelines. The lender still checks credit, assets, the appraisal and the property.
The Leverage Ladder: Size Sets the Ceiling
Leverage steps down as the loan grows, and the best cell can step back up when the bank program takes over. Each band has its own credit figure. That figure is the score the band’s top leverage needs, not a program floor. A lower score takes a lower leverage cell in the same band.
These are primary-residence ceilings through select wholesale programs, subject to full underwriting:
| Loan size | Purchase | Cash-out | Credit for this leverage | Program |
|---|---|---|---|---|
| $300K–$1M | 90% | 80% | 680+ | Portfolio |
| $1M–$1.5M | 85% | 80% | 700+ | Portfolio |
| $1.5M–$2M | 85% | 75% | 720+ | Portfolio |
| $2M–$3M | 80% | 70% | 720+ | Portfolio |
| $3M–$3.5M | 75% | 65% | 720+ | Portfolio |
| $3.5M–$4M | 75% | 65% | 760+ | Portfolio, super-jumbo overlays |
| $4M–$5M, on review | 65% | 60% | 680+ | Bank |
| $5M–$10M, on review | 60% | 55% | 680+ | Bank |
| $10M–$30M, on review | 55% | 50% | 680+ | Bank |
Every figure above $4,000,000 is reviewed case by case before submission. Never read it as a flat “up to.” No loan above $1,000,000 gets 90%. On the portfolio program, rate-and-term at $3,500,000 to $4,000,000 on a primary residence tops out at 70%.
Second homes and investment property use their own ladders. Read each figure from that occupancy’s table, never by subtracting from the primary one. A few examples:
- On an investment property, a purchase between $300,000 and $1,000,000 can reach 85%, and cash-out 75%, with 700+ credit for that leverage.
- On an investment property between $3,000,000 and $3,500,000, the bank program carries purchase at 60% and cash-out at 55%, with 680+ credit for that leverage.
- On a second home between $300,000 and $1,000,000, purchase can reach 85% and cash-out 75%. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Second homes are one-unit only. Two-to-four-unit properties can reach 85% in the bands that allow it.
Credit, Debt Ratio and Reserves
The credit floor is 660 on the portfolio program, 680 on the bank program and 700 above the super-jumbo line. Debt-to-income can run to 50%.
Reserves scale with size. Through select programs, they run:
- 3 months of reserves up to $500,000.
- 6 months up to $1,500,000.
- 9 months above that.
- 2 more months for each additional financed property, up to a 12-month maximum.
- 12 months for first-time investors. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Above the super-jumbo line, cash-out proceeds cannot satisfy reserves. Plan for liquid funds that sit outside the transaction.
Cash-out on the portfolio program is unlimited at or below 60% LTV. Above 60%, it carries a $1,500,000 cash-in-hand cap. The bank program has no published cap. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Interest-only exists on both. The portfolio program reaches 85% LTV with a 700 floor on a 40-year term with a ten-year interest-only period. The bank program stops at 60%, with five- and seven-year fixed-period adjustables. That ceiling applies to purchase and rate-and-term files only, and it never exceeds the band’s own purchase cell. It never raises a cash-out ceiling. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
What Changes at the Super Jumbo Line
Above $3,500,000 on a primary residence, and above $3,000,000 on a second home or investment property, the portfolio program adds overlays:
- A 700 credit floor.
- A 0x30x24 housing history.
- 48-month seasoning after 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 count toward reserves.
Above $4,000,000, everything goes to case-by-case review before submission. Expect more documentation requests and tighter scrutiny of the appraisal.
Acreage deserves its own note. Rural property is capped at 80% on ten acres or less and never above $3,000,000.
Michigan Considerations
Michigan fits the program map in a few specific ways. The state is one of the 16 where Lendmire’s consumer mortgage lending is licensed.
Michigan super jumbo files often involve a second home on a lakeshore or in a northern resort area. Waterfront and unique homes make appraisals harder, because comparable sales are thin. The second-home ladder and the one-unit-only rule govern those files. A property that leans rural can run into the acreage and rural limits above.
County conforming limits matter at the lower end. A loan just over a county’s limit is jumbo, but not super jumbo in any lender’s sense. Confirm the county limit before sizing the request. Beyond that, program rules do not change by county. Short-term rental rules can vary by city, county, HOA and property type, so confirm local rules before relying on projected rental income.
Asset Paths When Deposits Fall Short
Two asset routes exist for primary and second homes:
- Asset allowance is reviewed on liquid assets divided by 36, 60 or 84 months. Use 36 when debt-to-income before the asset income is at or below 60%, and 60 when it is above. Use 84 for standalone files or any loan above $3,500,000. The 60% test only picks the divisor. The final ratio must still fit the 50% ceiling. The loan caps at 80%.
- Assets-only needs no debt-to-income test. Liquid U.S. assets must equal the loan amount, plus closing costs, plus sixty months of any net loss on other residential property.
Retirement accounts count at 70%, or 80% for borrowers aged 59.5 and over. Business funds, gifts, trusts other than a revocable living trust, unvested stock and cryptocurrency never count.
Bank Statement or DSCR?
Occupancy usually decides the product. A bank statement loan tests the borrower’s income. A DSCR loan tests whether the property’s rent covers its payment, and it works only for investment property. DSCR loans are business-purpose investor loans, so they are reviewed differently from an owner-occupied mortgage. The complete DSCR loans guide covers that side.
For a personal-use jumbo, bank statements are the path. For a pure rental where rent is strong against the balance, DSCR can be simpler. Each new bank statement mortgage also uses up personal debt-to-income room, so a portfolio builder can hit that ceiling before running out of properties. Run both on the same deal before choosing.
Statement Red Flags and Document Checklist
Clean statements prevent most delays. Gather these before applying:
- ID and proof of self-employment or ownership.
- Twelve or twenty-four consecutive months of statements, every page.
- Entity documents if you use business statements.
- Asset statements for reserves.
- The purchase contract, or the current mortgage for a refinance.
- Insurance information for the property.
Fix these red flags first:
- Overdrafts.
- Large deposits with no clear source.
- Gaps between statement months.
- Commingled personal and business spending.
- Declining deposits with no explanation.
- Reserves that depend on cash-out proceeds.
Why Files Stall, and What Fixes Them
- The deposit total shrinks after scrubbing. Move the file to the other statement window, or switch between personal and business statements.
- Debt-to-income runs above 50%. Pay down debts before the file goes in, or look at the asset allowance route.
- Reserves come up short. Reserves scale with size and with each financed property. Cash-out proceeds cannot cover them above the super-jumbo line.
- Leverage exceeds the cell. Check the credit score against the band’s top cell. A lower score takes a lower cell.
- The appraisal does not support the price. Unique and waterfront properties are the usual cause. Request reconsideration with in-area sales and condition adjustments.
- Credit event inside 48 months. The overlay applies above the super-jumbo line. Smaller loan sizes may sit outside it.
Reach the team at 828-256-2183 or through the quote page.
Key Terms Defined
Expense ratio. The share of business deposits treated as operating cost and removed before income is calculated.
Eligible deposit. A deposit the underwriter accepts as income after removing transfers, refunds, loan proceeds and one-time windfalls.
Reserves. Liquid assets left after closing, counted in months of the housing payment.
Seasoning. The waiting period after a credit event before a lender will consider the file.
Non-QM. A mortgage that falls outside the qualified mortgage box and is underwritten to the lender’s own program rules.
Case-by-case review. A manual look at a file before submission, used for every loan above $4,000,000.
Frequently Asked Questions
Do I need traditional income documentation?
Not as the income test on a bank statement program. Lenders still verify identity, assets, credit and the property.
Can I use personal statements instead of business ones?
Yes. Personal statements skip the business expense ratio, and transfers from your own business into your personal account count in full. Personal accounts carry more noise, so scrubbing matters. Business statements need at least 25% ownership.
Is there a hard cap on loan size?
Loans run to $30,000,000 across two wholesale programs, but never as a flat maximum at one leverage. The portfolio program carries files to $6,000,000. The bank program carries the ladder to $30,000,000. Every loan above $4,000,000 is reviewed case by case before submission.
Does a second home or investment property qualify differently?
Yes. Each occupancy has its own leverage ladder, and second homes are one-unit only. Super-jumbo overlays start lower, at $3,000,000 instead of $3,500,000. Asset allowance and assets-only paths cover primary and second homes only.
How much do reserves matter?
Reserves are 3, 6 or 9 months by loan size, with 2 more months per additional financed property to a 12-month maximum. First-time investors need 12 months. Above the super-jumbo line, cash-out proceeds cannot satisfy them.
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 brokerage with consumer lending licenses in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending partners for borrowers whose tax returns understate their income, and each application is reviewed individually by the lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. Orrick: FHFA announces 2026 increases to conforming loan limits
2. CFPB: Ability-to-Repay and Qualified Mortgage small entity compliance guide
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: Does a Margin Loan Count as Debt on a Super Jumbo Bank Statement Loan? · Does a Retirement Account Count Toward a Super Jumbo Bank Statement Loan? · Should an HNW Executive Use IO on a Super Jumbo Bank Statement Loan?
Guides: Super Jumbo Bank Statement Loans in Michigan
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.