The Quick Read: A lender writing a super jumbo DSCR loan on a small apartment building lends the lowest of three numbers: the leverage cap for the loan-size band, the loan the rent can support, and the program ceiling. On most purchases the leverage cap binds first. That makes bigger buildings cost more down, as a share of price.
- Through select wholesale programs, purchase leverage on an investment property steps down from 80% to 60% as the loan grows, and above $4,000,000 every request is reviewed case by case.
- Cash-out stops at $3,000,000. Above that, the loan is purchase or rate-and-term only.
- The standard program ends at $3,000,000, and the high-balance ladder runs to $10,000,000, subject to underwriting.
- The ladder below is built for 1-4 units. At five units and up, the income test and the paperwork change.
- Qualification runs primarily on the property’s rental income covering the payment, subject to lender guidelines.
Most investors ask the wrong question first. They ask “what’s the maximum loan?” The better one is “which limit hits me first?” This guide walks through all three, then the ladder, then the places where the rule bends. For the foundation, Lendmire’s complete DSCR loans guide covers the basics.
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Rate source: Freddie Mac 30-yr average via FRED® — Federal Reserve Bank of St. Louis · effective Oct 15, 2026
Prefilled with starting assumptions — enter your own rent or nightly figures, taxes, insurance, and HOA for a more accurate picture.
Program parameters update from Lendmire’s centralized guideline source. Taxes and insurance are editable estimates.
As of Oct 15, 2026 · General Freddie Mac market benchmark, not a Lendmire loan offer. Rent, nightly rate, occupancy, taxes, and insurance are editable estimates. Short-term rental figures are estimates only and vary significantly by season, property type, management approach, and local short-term-rental rules — confirm local regulations before relying on them. Qualifying income for short-term rentals varies by program — some use appraisal market rent, others use documented STR history or projections — and is confirmed in underwriting. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
What “Super Jumbo” Actually Means
“Super jumbo” is a lender label, not an official category. Nobody defines it by law. Across the wholesale network Lendmire places files with, the marker sits near $3,000,000. That is where the standard program stops and the high-balance ladder takes over.
A DSCR loan (debt service coverage ratio loan) is a business-purpose loan for non-owner-occupied investment property. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Your traditional personal-income documentation is not the center of the file. Because these are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage.
Lendmire is a broker. It arranges these loans through select lenders in its network across 41 markets, including Washington, D.C. The lenders review, underwrite and approve. Nothing here is a commitment to lend.
The Three Limits
Every request on a small apartment building runs through three gates at once. The loan you get is the smallest result.
1. The leverage cap for the loan-size band. Bigger loans get lower loan-to-value (LTV), meaning the loan as a share of the property’s value.
2. The loan the rent can support. Coverage has to clear the program’s test at the proposed balance.
3. The program ceiling. The standard program stops at $3,000,000. The high-balance ladder tops out at $10,000,000.
Most buyers hit the first gate. A building with strong rent still can’t borrow past its band’s cap. A building with weak rent can fail gate two long before it reaches the cap. Gate three only matters on very large requests.
The Ladder: How Loan Size Changes the Leverage
The ladder is the heart of the answer. Every figure below is a ceiling at coverage of 1.00 or higher, on an investment property, through select wholesale programs, subject to underwriting.
| Loan band | Purchase | Rate-and-term | Cash-out |
|---|---|---|---|
| $150K–$1M | 80% | 80% | 75% |
| $1M–$1.5M | 75% | 75% | 70% |
| $1.5M–$2M | 75% | 75% | 60% |
| $2M–$3M | 75% | 75% | 60% |
| $3M–$4M | 65% | 65% | — |
| $4M–$6M (on review) | 60% | 60% | — |
| $6M–$10M (on review) | 60% | 60% | — |
The bands are loan amounts, not purchase prices. Multiply price by leverage first, then read the band that loan falls in. The 75% cash-out ceiling in the first band applies to standard rentals. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Above $4,000,000, every request is reviewed case by case before submission, purchase or rate-and-term only. Treat any figure there as “on review,” never as a flat “up to.”
What the Credit Score Does Here
The ladder shows leverage only. Credit works differently. The program floor is 660 on loans to $3,000,000 and 700 above that. A score near the floor takes a lower leverage cell inside the same band.
The top cell in each band needs more:
- Loans to $1,000,000: the top cell needs 660 or better.
- $1,000,000 to $1,500,000: the top cell needs 700 or better.
- $1,500,000 to $3,000,000: the top cell needs 720 or better.
- Above $3,000,000: the top cell needs 700 or better, along with the overlay conditions covered below.
How Underwriting Sizes the Loan, Step by Step
Step 1: Count the units. One to four units is residential investment property. Five and up is commercial multifamily. That is industry convention, not statute. A fourplex sits in the gray zone and can draw either kind of offer.
Step 2: Pick the income test. On 1-4 units, coverage is usually monthly rent divided by PITIA. PITIA is principal, interest, taxes, insurance and association dues, the full monthly obligation. On five-plus units, commercial-style underwriting compares net operating income (NOI) to annual debt service. NOI is revenue minus operating expenses, measured before debt service, capital expenditures, depreciation and income taxes. Some 5-10 unit programs keep the rent-over-PITIA formula, so confirm which one applies before you model the deal.
Step 3: Size the income. Coverage tells you whether income handles the payment. It does not tell you whether the loan is sensible relative to income. Expense-heavy buildings score lower under NOI math than under rent-over-PITIA, because operating costs come out first.
Step 4: Apply the band’s leverage. Read the ladder. A bigger balance means a lower cap.
Step 5: Value the property. On 1-4 units, the appraiser works from a rent schedule (Form 1007 for single-family rentals, Form 1025 for small residential income property). Above $2,000,000, the program requires two appraisals. Lendmire’s piece How Much a Jumbo Lender Lends on a Home Needing Two Appraisals explains why that second report matters.
Step 6: Gather documents. Expect leases and a rent roll, which is a unit-by-unit list of tenants and rents. Larger buildings also bring operating history.
Worked Examples: Which Limit Hits First
These use prices, percentages and coverage ratios only. Each is a modeled scenario, not a market statistic.
A $1,300,000 triplex purchase. Asking for 80% would push the loan past $1,000,000, where the cap drops to 75% on a purchase. The buyer plans on 75%. The loan stays under the $1,000,000 line, and the leverage cap is the binding limit.
A $5,000,000 fourplex purchase. At 75%, the loan would land in the $3M–$4M band, where the purchase cap is 65%. So 65% is the plan, and that band’s cap sets the loan. The file also needs the overlay items below, plus two appraisals. The extra down payment is the real cost of “super jumbo.”
An $8,000,000 building. At 60%, the loan lands in the $4M–$6M band, which goes to case-by-case review. Sixty percent is the figure on review, not a promise.
A rent-limited file. Say the leverage cap would allow a large loan, but rent covers the payment at only about 0.95x. Gate two now binds. Coverage below 1.00 is a real path through select programs, up to $2,000,000, but LTV and terms adjust, subject to underwriting. The loan may shrink, or leverage may fall, or both.
Honestly, the middle case is where most big-building buyers live. The rent is fine and the leverage cap decides everything.
Four Units or Five? Where the Rule Breaks
The ladder above is built for 1-4 units. Cross that line and four things change at once: the category, the income formula, the appraisal and the paperwork.
Many DSCR lenders stop at four units. Some programs reach eight or ten, and a few multifamily products go higher. At five-plus units, each program sets its own income formula, leverage and term structure, and some 5-10 unit programs still use rent over PITIA while others use NOI. I’d treat any five-plus unit request as a separate conversation from the ladder, and the broker should confirm the formula up front.
A fourplex is the tough call. It can get a residential DSCR offer or a bank commercial offer. A bank’s “DSCR loan” is often a commercial structure with a coverage test attached: shorter term, longer amortization and a balloon at the end. That is not the same product as a 30-year investor loan. Compare the full structure, not the label.
Mixed-use buildings add another wrinkle. Treatment depends on the residential share and the quality of the leases.
What Tightens Above $3,000,000
Past $3,000,000, the super jumbo overlay applies. Think of it as extra gates. Subject to underwriting, typical conditions are:
- A 700 credit score floor and a clean 0x30x24 housing history, meaning no 30-day late payments in the last 24 months.
- 48 months of seasoning after a credit event such as a foreclosure or bankruptcy. Seasoning is the waiting period before the event stops counting against you.
- Citizens and permanent residents only.
- No rural property, and no more than ten acres on a non-rural one.
- Cash-out proceeds never count toward reserves. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Reserves are cash you hold after closing. The typical requirement is six months of PITIA on the subject property, or 12 months for first-time investors. On interest-only loans the figure is ITIA, since there is no principal. Other financed properties don’t add extra reserves, and the program allows up to 20 financed properties.
DSCR vs. conventional financing
There are two common ways to finance an investment property, and they qualify you differently — here’s how investors weigh them.
Why investors choose it
- Qualifies on the property’s rental income — no personal tax returns, W-2s, or pay stubs needed to document income.
- No personal debt-to-income ceiling to clear, so existing mortgages and obligations don’t cap your borrowing the same way.
- Can be closed in an LLC, keeping the property inside a business entity.
- Built for scaling — not held to the limit on number of financed properties that conventional financing applies.
- Underwriting centers on the deal: generally qualifies when the rent covers the payment, a 1.00x coverage ratio being a common baseline (confirmed in underwriting).
- Designed specifically for investment property, including long-term and, where the program allows, short-term rentals.
Where it’s strong
- Often the lowest ongoing financing cost for a buyer who fully qualifies on personal income — a fit for a first property or a cost-first purchase.
Trade-offs for investors
- Requires full personal income documentation and must fit within a debt-to-income limit — salary, existing debts, and other mortgages all count.
- Typically held in your personal name rather than a business entity.
- Caps how many financed properties you can carry, which can become a ceiling as a portfolio grows.
- Evaluates you as a borrower as much as the property, which usually means more paperwork.
How investors usually choose: a first or single property often optimizes for the lowest financing cost; portfolio builders often optimize for leverage, vesting in an LLC, and scaling past conventional caps. The right answer depends on your goals, the property, and current guidelines — both paths run through select lenders in Lendmire’s wholesale network, with eligibility and terms confirmed in underwriting.
Purchase, Refinance and Cash-Out at Size
On a purchase or rate-and-term refinance, the ladder’s top cell is the goal. Cash-out is stricter, as the table shows.
Proceeds are unlimited at or below 60% LTV on a cash-out refinance. Above 60%, they are capped at $1,500,000. There is no cash-out above $3,000,000 at all. Above $1,500,000, a score of 680 or below doesn’t qualify for cash-out. An investor wanting to pull equity from a $6,000,000 building should plan on a rate-and-term refinance, not cash-out. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Variations: Interest-Only, Entities and Short-Term Rentals
Interest-only. A 120-month interest-only period is available on 30- and 40-year terms, up to 75%, subject to underwriting. That lowers the payment and can lift coverage. It is qualified on ITIA.
Entity vesting. Holding title in an LLC is welcome, subject to program terms, though layered entities are not.
Short-term rentals. A small building run as short-term rentals qualifies at coverage of 1.00 or higher, to $2,000,000. Income is based on documented operating history, or the appraisal’s rent analysis on a purchase, at 80% of gross. Only experienced investors qualify. 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.
Does the Conforming Limit Cap This Loan?
No. People assume the conforming loan limit sets a ceiling on every mortgage. It doesn’t. The FHFA’s conforming loan limit announcement sets a one-unit baseline of $832,750, with a high-cost ceiling of $1,249,125. Orrick’s legal update confirms both numbers.
Those limits govern loans Fannie Mae and Freddie Mac can buy. A DSCR loan is non-QM, so it sits outside them. The sizing rules here come from the ladder and the lender’s guidelines, not from the agencies.
Is This the Wrong Tool for You?
Sometimes. A super jumbo DSCR loan is the right fit when you want to qualify on the building’s income, hold title in an entity, and accept lower leverage at larger balances. It is the wrong fit when you need above 75% leverage on a loan over $1,000,000, or cash-out on a loan over $3,000,000. Neither exists on this ladder. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
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.
Before you approach a broker, gather:
- Purchase price or current value, and the loan you want.
- A rent roll and leases for every unit.
- An entity document, if you plan to vest in one.
- Proof of reserves that does not rely on cash-out proceeds.
- Your credit profile and housing history.
Some investors in this range run the same building through two structures, a bank offer and a DSCR offer, and compare the full terms. That is a sound habit. The cheaper-looking number is often the shorter, balloon-bearing one.
Key Terms Defined
Super jumbo: A lender’s label for very large loans, often above $3,000,000. No official definition exists.
DSCR: Debt service coverage ratio, meaning how many times the income covers the debt payment.
PITIA: Principal, interest, taxes, insurance and association dues, the full monthly obligation.
NOI: Net operating income, meaning revenue minus operating expenses, before debt service, capital expenditures, depreciation and income taxes.
LTV: Loan-to-value, the loan as a percentage of the property’s value.
Rent roll: A unit-by-unit list of tenants, rents and lease terms.
Reserves: Liquid cash you hold after closing to cover the payment if rent stops.
Frequently Asked Questions
What is the most a lender will lend on a small apartment building?
The ladder runs to $10,000,000, but only on review. Above $4,000,000, every request goes through case-by-case review before submission. Purchase and rate-and-term loans there sit near 60% on review, with no cash-out. Everything remains subject to underwriting.
Why does the loan percentage drop as the loan grows?
Larger loans carry more risk if the property sells for less than expected. Lenders respond by asking for more of your own money as the balance climbs. The cap is set by the loan band, not by the purchase price.
Can I take cash-out on a $4,000,000 building?
No. Cash-out is not available above $3,000,000. A rate-and-term refinance is the option in that size range, on review above $4,000,000.
Do I need two appraisals?
Yes, above $2,000,000. Below that, one appraisal is typical. The second report supports a loan that large.
What if the rent doesn’t cover the payment?
Coverage below 1.00 is a real path through select programs, up to $2,000,000. LTV and terms adjust, subject to underwriting. Above that size, the building generally needs to clear 1.00.
Next Steps
If you are buying or refinancing a high-balance rental property and want to see how the numbers work, Lendmire can help you compare super jumbo DSCR loan options based on the property income, the loan balance, credit profile, leverage, and investor goals. You can reach the team at 828-256-2183 or request a quote.
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. FHFA conforming loan limit announcement
2. Orrick legal update on conforming loan limits
This article is part of Lendmire’s super jumbo DSCR loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How Much a Super Jumbo DSCR Loan Lends on a Multi-Market Trust Portfolio · How a Super Jumbo DSCR Lender Underwrites a Multi-State Pool · How a Super Jumbo DSCR Lender Reads a Luxury Condo Tower Pool
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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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.