The Quick Read: No government agency sets a cap. Each lender sets its own ladder, and the real ceiling on your loan is the smallest of three limits: the leverage cap for your loan size, the amount the rent can support, and the size band itself. Founders with large cash but thin documented income often fit this loan well, because it qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.
Key takeaways:
- Across the wholesale network Lendmire works with, loans run from $150,000 to $10,000,000. Everything above $4,000,000 is reviewed case by case, purchase or rate-and-term only.
- Maximum leverage falls as the loan grows: 80% on a purchase up to $1,000,000, 75% to $3,000,000, 65% to $4,000,000, and 60% above that on review. All of it is subject to underwriting.
- Cash-out disappears above $3,000,000, and two appraisals are required above $2,000,000.
- Exit proceeds do not raise your coverage ratio. They show up as the down payment and as reserves.
- Rent evidence matters more as the balance grows, because rent drives the entire qualification.
DSCR Calculator
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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
A super jumbo is a loan balance big enough that a lender puts it in a separate tier with tighter rules. The line is the lender’s, not a regulator’s. One lender may start the tier at $2,000,000 and another at $3,000,000.
That matters because quotes cannot be compared until you know where each lender draws its lines. A loan that looks routine at one shop can sit in a stricter tier at the next.
Lendmire is a mortgage broker. It arranges these loans through a wholesale network of investor lenders, and the lenders review eligibility and approve. Across that network, the standard DSCR program stops at $3,000,000. A portfolio investor program carries qualified borrowers from $150,000 up to $10,000,000. Short-term-rental files and no-ratio files stop at $2,000,000.
Key Terms Defined
DSCR (debt service coverage ratio): The property’s monthly rent divided by its full monthly housing obligation. A result of 1.00 means rent exactly covers the payment.
PITIA: Principal, interest, taxes, insurance and association dues. It is the full monthly obligation that rent is measured against.
LTV (loan-to-value): The loan balance as a percentage of the property’s value or purchase price.
Reserves: Liquid savings you keep after closing, counted in months of PITIA.
Case-by-case review: The lender looks at the whole file before it is even submitted, instead of applying a fixed grid.
Rate-and-term refinance: A refinance that replaces the existing loan without taking cash out.
Why DSCR Loans Run on Their Own Ladder
A DSCR loan is a business-purpose investor loan. HousingWire’s non-QM guide describes DSCR as the main non-QM tool for investors. The lender asks whether the property can carry the debt, not what your W-2 or personal debt-to-income ratio looks like.
The loans are privately funded, so the federal conforming limit does not size them. Each lender in the network builds its own grid of loan size, leverage, credit and reserves.
The Smallest of Three Limits
Your maximum loan is whichever of three numbers is smallest.
1. The leverage cap. Each size band allows a maximum LTV. A 75% cap on a $3,000,000 property allows a larger loan than a 65% cap on the same property.
2. The rent-supported amount. The rent has to cover the full monthly obligation at the coverage the program wants. Take the same price and add heavy taxes, insurance or dues, and the rent supports a smaller loan.
3. The size band. Some programs cap by file type. Short-term-rental and no-ratio files stop at $2,000,000, and cash-out stops at $3,000,000.
A high price does not mean a high loan. Luxury properties often carry large tax, insurance and dues bills, and those costs sit inside PITIA. When rent lags, the rent-supported amount becomes the binding limit long before the leverage cap does.
The Size Ladder
The table shows the best available leverage in each band at 1.00 coverage or better. Every figure is a ceiling through select wholesale programs and is subject to underwriting.
| Loan band | Purchase / rate-and-term LTV | Credit for this leverage |
|---|---|---|
| $150K–$1M | 80% | 660+ |
| $1M–$1.5M | 75% | 700+ |
| $1.5M–$2M | 75% | 720+ |
| $2M–$3M | 75% | 720+ |
| $3M–$4M | 65% | 700+ |
| $4M–$6M | 60%, on review | 700+ |
| $6M–$10M | 60%, on review | 700+ |
Read the credit column carefully. It shows the score that band’s top leverage needs. It is not the program floor. The floor is 660, and a lower score takes a lower leverage cell within the same band. The one floor that changes with size is 700 above $3,000,000, and that is a super jumbo overlay.
Cash-out follows its own steps. It reaches 75% only in the lowest band, on standard rentals. It steps down to 60% from $1,500,000 to $3,000,000, and above $3,000,000 it is not available. Proceeds are unlimited at or below 60% LTV and capped at $1,500,000 above that. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
If you are weighing how much of the price you can finance, Lendmire’s piece Can a Post-Exit Founder Get Full Financing on a Super Jumbo DSCR Rental? goes deeper on leverage.
What Tightens as the Balance Grows
Leverage is only one dial. Across the network, several others move together.
Appraisals. Above $2,000,000 most programs want two appraisals. Each gives a value opinion and a rent schedule, and the lower value commonly governs the loan size. The rent the appraiser supports carries as much weight as the sales value, because rent is the numerator in your coverage ratio.
Credit. The program floor is 660. Above $3,000,000 the floor becomes 700. That tier also asks for a clean housing payment history, a waiting period after any credit event, and citizen or permanent-resident status. Rural property is excluded there, and acreage is capped at ten acres.
Reserves. On most files you need six months of PITIA on the subject property. First-time investors need twelve. Other financed properties add no extra reserve requirement, and you can hold up to twenty financed properties. Above $3,000,000, cash-out proceeds cannot count toward reserves.
Interest-only. Many programs offer a 120-month interest-only period on 30- and 40-year terms, up to 75% LTV. The file is qualified on the interest-only payment plus taxes, insurance and dues. That runway helps a founder who wants to keep cash free for the next deal. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Review. Above $4,000,000 every request is reviewed case by case before submission. Expect to be asked about the property, your liquidity and your exit plan in more depth. Nothing on this ladder is a commitment to lend.
Why a Post-Exit Founder Is a Different Borrower
Right after an exit, a founder’s taxable income can be thin or lumpy while net worth is large. A conventional underwriter reads that as weakness. A DSCR underwriter reads the property.
That means the file qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Your wealth still matters, but in a supporting role. It shows up in three places.
- Down payment. The size band sets your maximum leverage, so the equity check is a percentage of price that you plan around.
- Reserves. Proceeds sitting in a bank or brokerage account, documented and traceable, satisfy the reserve requirement.
- Credit. A clean report at a higher score can unlock the top leverage cell in a band. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Paper wealth is treated differently. Unvested shares, unexercised options and illiquid stock generally do not count toward reserves or the down payment until they are liquid. If the sale has not settled, expect the lender to wait for the cash.
Entity vesting is welcome, with no layered entities, subject to lender program eligibility. For the mechanics, see Lendmire’s article Can a Post-Exit Founder Vest a Super Jumbo DSCR Loan in an LLC?.
One more distinction matters. An asset-depletion loan converts liquid assets into notional monthly income, and HousingWire lists it as a separate non-QM program. A DSCR loan does not do that. It never converts your assets into income, and your property’s rent is the qualifier.
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.
Worked Example: Same Founder, Three Loan Sizes
These are modeled assumptions, not market data. Say a founder with a strong credit score and ample documented reserves is buying a luxury rental. The coverage figures below are assumed for illustration.
Scenario one: loan between $2,000,000 and $3,000,000. Assume appraised rent supports coverage of about 1.15x. That clears 1.00, so the file sits in the 75% purchase band, with two appraisals and six months of PITIA in reserves. Interest-only may be an option, subject to underwriting.
Scenario two: same property, weaker rent evidence. Assume the appraiser’s rent schedule comes in lower and coverage lands below 1.00. Select programs in the network review below-1.00 files up to $2,000,000, but LTV and terms adjust, subject to underwriting. Above $2,000,000 the file needs 1.00 or better. This founder can either bring a lower loan amount or find stronger rent evidence.
Scenario three: the request crosses $3,000,000. The purchase ceiling drops to 65%, cash-out is off the table, and the credit overlay moves to 700. Stay at $3,000,000 or below and 75% is available. Go over and the ceiling drops ten percentage points, which means ten more points of the price in equity.
That last step is the one founders miss. The band edge changes the equity check more than the headline maximum does. A buyer sitting just above $3,000,000 should price out a smaller loan before assuming the large one is better.
Where the General Rule Breaks
Short-term rentals. A short-term rental needs coverage of 1.00 or higher, and the loan stops at $2,000,000. Income counts at 80% of gross, based on twelve months of operating history on a refinance or the appraiser’s short-term-rent analysis on a purchase. The investor must have owned income property for twelve of the last thirty-six months. 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. Permission has to be documented for the specific property.
Sub-1.00 and no-ratio files. Through select wholesale programs, files below 1.00 coverage can run up to $2,000,000 at reduced leverage, subject to underwriting. A no-ratio path reaches $2,000,000 through a handful of lenders, and it requires a clean seven-year housing history, subject to underwriting. Neither is a default setting, and neither runs at the full-leverage cell.
Cash-out on a big asset. There is no cash-out above $3,000,000. A founder who wants equity out of a very valuable property usually stages it through a smaller loan or draws on other assets.
The top of the ladder. Above $4,000,000 the figures are ceilings on review, not promises. Two lenders can answer the same $6,000,000 request very differently.
The conforming-limit contrast. The federal baseline for a one-unit property is currently $832,750, with a high-cost ceiling of $1,249,125, according to Orrick’s summary of the FHFA announcement. That number decides which loans the government-sponsored agencies can buy. DSCR loans are not agency products, so it does not cap them.
Business purpose, not a personal home. 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 Truth in Lending handbook and the OCC’s Comptroller’s Handbook on the same law both describe how business-purpose credit is treated. The practical consequence: do not use the loan for a home you plan to live in.
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.
DSCR vs. Bank Jumbo vs. Bank-Statement Loan
A founder usually compares three paths. The table shows where each one fits.
| Factor | DSCR loan | Bank jumbo | Bank-statement loan |
|---|---|---|---|
| Reviewed on | Property rent | Income and assets | Deposit history |
| Best for | Rentals, thin income | Large W-2 or steady income | Business-owner cash flow |
| Purpose | Business only | Often owner-occupied | Varies by program |
| Cash-out at top size | Not above $3M | Varies by lender | Varies by program |
The deciding question is what you are buying. For a rental, DSCR is built for the job. For a home you will live in, a big bank jumbo or an asset-based product is the right lane.
Practical Next Steps
Gather these before you ask any lender for a quote:
- Statements showing your reserves and the trail from the sale proceeds
- Entity documents, if you plan to buy in an LLC
- A lease, or a rent estimate if the unit is vacant
- Current insurance and tax figures for the property
- Credit report details, including any recent events
Then ask every lender where its super jumbo tier starts, how many appraisals it requires, and whether it lowers leverage at each size band.
Lendmire’s complete DSCR loans guide covers the basics if you want the foundation first. 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. The brokerage arranges business-purpose investment financing in 41 markets, which means 40 states plus Washington, D.C.
Frequently Asked Questions
Is there an official limit on a super jumbo DSCR loan?
No. The only federal figure is the conforming limit, and it does not apply to DSCR loans. Each lender sets its own ladder. Across Lendmire’s network the portfolio program runs to $10,000,000, with every file above $4,000,000 reviewed case by case.
Can a founder with no current paycheck qualify?
Often, yes. The file qualifies primarily on the property’s rent covering the payment, subject to lender guidelines. Credit and reserves still matter, and documented sale proceeds usually carry the reserve requirement. Unvested or illiquid equity generally does not count until it is liquid.
How much cash do I need beyond the down payment?
On most files you need six months of PITIA in reserves on the subject property, and twelve months if you are a first-time investor. No extra reserves apply for other financed properties, and you can hold up to twenty.
Can I take cash out of a very expensive rental?
Only up to a point. Cash-out is unavailable above $3,000,000. Between $1,500,000 and $3,000,000 it tops out at 60% LTV, and proceeds are unlimited at or below 60% LTV and capped at $1,500,000 above it. Everything is subject to underwriting. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Does a short-term rental get the same limits?
No. Short-term-rental files stop at $2,000,000, need coverage of 1.00 or higher, and count income at 80% of gross. They are for experienced investors only. Local rules are set at the city, county or HOA level and change over time.
For current guidelines and terms, see Lendmire’s super jumbo DSCR loan programs page.
Lendmire’s self-employed mortgages page presents both super jumbo programs, bank statement and DSCR, side by side.
About Lendmire
As a non-QM mortgage broker (NMLS# 2371349), Lendmire facilitates DSCR investor loans across 41 markets, including Washington, D.C. DSCR eligibility is generally reviewed around property-level rental income instead of personal income documentation, subject to lender guidelines, serving LLC-structured portfolios and self-employed borrowers who don’t fit conventional boxes. A two-time Scotsman Guide Top Mortgage Workplace (2025, 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. HousingWire: Non-QM Loans Guide
2. Orrick InfoBytes: FHFA Announces Increases to Conforming Loan Limits
3. CFPB: Truth in Lending Act Examination Procedures
4. OCC: Comptroller’s Handbook, Truth in Lending Act
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: Can an LLC Get a Super Jumbo DSCR Loan? · How Super Jumbo DSCR Portfolio Limits Work for LLC Operators Beyond 10 Doors · Can a Retiree With No Job Qualify for a Super Jumbo DSCR Loan?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- 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.