The Quick Read: Qualifying comes down to five gates: rent that covers the full monthly obligation, a credit score that matches the leverage you want, six months of reserves on the subject property, two appraisals above $2,000,000, and a property that fits the program, all subject to underwriting and lender guidelines.
- Loan sizes run from $150,000 to $10,000,000 through select wholesale programs. The standard DSCR program stops at $3,000,000.
- Leverage steps down as the balance grows. On an investment-property purchase, the maximum LTV is highest on smaller balances and tightens at higher loan sizes, with loans above $4,000,000 reviewed case by case.
- Coverage of 1.00 earns full leverage. Lower coverage is a real path through select programs, but LTV and terms adjust.
- Above $3,000,000 the credit minimum is 700, there is no cash-out, and rural property is excluded.
- Most Kentucky purchases fall well below jumbo size, so a super jumbo loan is a niche inside the state.
What Makes a Loan Super Jumbo?
No law defines it. Super jumbo is a trade label, and each program draws its own line. A loan becomes jumbo when it exceeds the conforming limit. HousingWire reports a baseline limit of $832,750 for one-unit properties in most of the country, with a ceiling of $1,249,125 in high-cost areas.
DSCR Calculator
Run the numbers in Kentucky
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.
Past that point, the lender sets the cutoff. Across the wholesale network Lendmire works with, the standard DSCR program stops at $3,000,000. A separate portfolio investor program carries qualified borrowers up to $10,000,000. Lendmire is the broker. It arranges these loans through select lenders in 41 markets, including Washington, D.C., and the lenders review and approve each file.
A quick look at the Kentucky market shows how rare this is. Redfin puts Louisville’s median price at $278K, and Zillow puts the average home value in affluent Goshen at $503,797. Super jumbo requests here come from high-end pockets, multi-unit purchases, and refinances of larger assets.
Key Terms Defined
Super jumbo: an informal label for a loan far above the conforming limit. Each lender decides where it starts.
DSCR (debt service coverage ratio): the property’s monthly rent divided by its full monthly housing obligation. A result of 1.00 means rent equals the obligation.
PITIA: principal, interest, taxes, insurance, and association dues. This is the full monthly obligation used in the ratio.
ITIA: interest, taxes, insurance, and dues. Interest-only loans are tested on this payment because no principal is due.
LTV (loan-to-value): the loan balance as a percentage of the property’s value.
Reserves: liquid assets set aside after closing. They are measured in months of PITIA.
No-ratio: a path where the lender does not test a minimum coverage ratio. It is limited to select programs, with tighter LTV, credit, and history requirements.
0x30x24: no payment 30 or more days late in the past 24 months.
How Underwriting Treats the File, Step by Step
A super jumbo DSCR file qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Credit and assets still matter, and they matter more as the balance rises. Here is the sequence.
1. Structure. The borrower is usually an entity that owns the property. Entity vesting is welcome, subject to program terms, but layered entities are not. The formation documents must authorize the borrowing.
2. Rent. A signed lease or an appraiser’s market-rent schedule sets the number. Appraisers borrow agency templates for this: Form 1007 for a single-family home and Form 1025 for two to four units. DSCR files are not governed by agency rules.
3. Monthly obligation. The lender adds principal, interest, taxes, insurance, and any dues. Rent divided by that total is the coverage number.
4. Valuation. One appraisal is typical. Above $2,000,000, two appraisals are required.
5. Credit and reserves. The credit floor is 660. Reserves are six months of PITIA on the subject property, or twelve for first-time investors. Other financed properties add no extra reserve requirement.
6. Size-based tightening. Leverage drops, credit expectations rise, and cash-out disappears as the loan grows.
Step six is where most large files are decided. A strong ratio does not rescue a file with thin reserves or a score below the band’s requirement.
The Leverage Ladder
Leverage is the clearest way to see the size effect. These are ceilings at coverage of 1.00 or higher, through select wholesale programs, subject to underwriting. The credit column shows the score that band’s top leverage needs, not the program floor. The floor stays at 660, and a lower score takes a lower leverage cell within the same band.
| Loan size | Purchase / rate-term (investment) | Cash-out, standard rentals | Credit for this leverage |
|---|---|---|---|
| $150K–$1M | 80% | 75% | 660+ |
| $1M–$1.5M | 75% | 70% | 700+ |
| $1.5M–$2M | 75% | 60% | 720+ |
| $2M–$3M | 75% | 60% | 720+ |
| $3M–$4M | 65% | — | 700+ |
| $4M–$10M | 60%, on review | — | 700+ |
Every request above $4,000,000 gets a case-by-case review before submission. Those requests are purchase or rate-and-term only, so treat the figures in the table as starting points. Do not read them as limits you can count on.
A Worked Coverage Example
Run the numbers on a $2,500,000 rental purchase at 75% LTV as an investment property. The rent is a modeled assumption chosen so coverage lands near 1.05x. That clears the 1.00 mark and earns the full leverage for this band. The top cell in this band needs credit around 720, and the two appraisals are required because the loan exceeds $2,000,000. Six months of PITIA must sit in reserves on this property. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Now cut the rent so coverage lands near 0.90x. A coverage figure between 0.75 and 0.99 is a real path through select programs, up to $2,000,000. LTV and terms adjust, subject to underwriting. At $2,500,000 the file is above that ceiling, so the realistic fixes are more rent support, a lower balance, or a different structure.
Interest-only is one such structure. The program offers a 120-month interest-only period on 30- and 40-year terms, up to 75% LTV. Because the test uses ITIA instead of PITIA, the denominator shrinks and coverage rises. The tradeoff is that the balance does not fall during that period. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
What If Coverage Falls Short?
Investors with high-value properties often start here, because rent rises more slowly than price. On expensive homes, reaching 1.00 can be hard. That is why the ratio is rarely the binding gate at this size. Credit, reserves, and appraisals usually bind first.
You have four options.
- Lower the balance. A bigger down payment improves coverage and often improves leverage terms.
- Use a sub-1.00 path. Select lenders in the network will look at reduced coverage up to $2,000,000, with LTV and terms adjusted.
- Try no-ratio. Through a handful of lenders in the network, no-ratio reaches $2,000,000 with a seven-year clean housing history and 0x30x24, subject to underwriting and credit, reserve, and LTV limits.
- Switch documentation type. A bank statement loan is reviewed on documented income under the applicable program, subject to lender guidelines. Lendmire’s piece Does Undistributed K-1 Income Qualify on a Super Jumbo Bank Statement Loan? covers that route.
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.
Where the General Rule Breaks
Above $3,000,000. The super jumbo overlay applies. You need a 700 score, 0x30x24, and 48 months of seasoning after any credit event. Only citizens and permanent residents qualify. Rural property is excluded, acreage tops out at ten acres, and cash-out proceeds never count toward reserves.
Cash-out. Unlimited proceeds are available at or below 60% LTV. Above 60%, proceeds are capped at $1,500,000. There is no cash-out above $3,000,000, and none for scores of 680 and below on loans above $1,500,000. 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. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Condos. Warrantable and non-warrantable condos are both eligible. A non-warrantable condo is capped at 75% LTV and $1,500,000, so it cannot absorb a loan this large. Condotels carry the same $1,500,000 cap, with 75% on a purchase, 65% on a refinance, and $250,000 cash-in-hand. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Rural and acreage. Rural collateral of five acres or less goes to 75%, and only on loans of $3,000,000 or less. Acreage runs up to twenty acres on loans to $3,000,000 and ten acres above that.
Short-term rentals. Coverage must be 1.00 or higher, and loan amounts stop at $2,000,000. Income is twelve months of operating history on a refinance, or the appraisal’s short-term-rent analysis on a purchase, counted at 80% of gross. Multiplying a nightly rate by 30 does not establish rent. Only experienced investors qualify: twelve months owning income property in the last thirty-six. Short-term rentals are not eligible on the no-ratio path. 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. Municipal permission must be documented for the specific property.
Portfolio size. Borrowers can carry up to 20 financed properties.
Why the Test Is the Property
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 Regulation Z exempts credit extended primarily for a business purpose, and the commentary directs the creditor to decide this case by case. This is why personal debt-to-income does not drive the file. It also means the funds must serve a real investment purpose. Using proceeds for personal spending can change the analysis.
Kentucky in Practice
Kentucky is mostly a sub-jumbo market, so the work here is picking the right structure. Taxes and insurance sit in the denominator of the ratio. A property with heavy carrying costs needs more rent to hit the same coverage, and these costs vary by county. In an affluent pocket or a larger multi-unit asset, compare a DSCR loan with a full-documentation jumbo.
| Factor | DSCR | Full-doc jumbo | Bank statement |
|---|---|---|---|
| Reviewed on | Property rent | Personal income | Documented deposits |
| Best fit | Many properties | Steady traditional employment income | Self-employed |
| Traditional personal-income documentation | Not the test | Central | Program-dependent |
| Entity vesting | Welcome | Rare | Program-dependent |
The complete DSCR loans guide walks through the basics for readers who want the foundation first.
Pre-Application Checklist
- Entity formation documents that authorize the borrowing, with no layered entities.
- A lease or rent evidence, plus an estimate of taxes, insurance, and dues.
- A credit profile matched to the band you are targeting.
- Six months of PITIA in reserves, or twelve for a first-time investor. Do not count cash-out proceeds toward reserves above $3,000,000.
- Proof of citizenship or permanent residency if the loan exceeds $3,000,000.
- For short-term rentals, twelve months of operating history and municipal permission documented for the specific property.
Why Files Stall
The first cause is a mismatch between score and leverage. A borrower asks for the top cell of a band without the credit that cell needs. The second is reserves. They are counted on the subject property, and borrowers sometimes plan on cash-out proceeds that cannot count. The third is property fit: rural collateral above the size limit, a non-warrantable condo over its cap, or a short-term rental on the no-ratio path. The fourth is an optimistic rent figure that the appraiser’s schedule does not support.
Frequently Asked Questions
Is a super jumbo DSCR loan hard to get?
It is harder than a standard-balance DSCR loan, mostly because credit, reserves, and appraisals tighten first. Borrowers with strong credit, six months of reserves, and rent that supports the payment tend to fit best. Approval is subject to lender guidelines and underwriting.
Do I need personal income documents?
The file qualifies primarily on property-level rental income, subject to lender guidelines. Lenders still review credit, assets, entity documents, and the property itself.
What counts as reserves?
Reserves are liquid assets measured in months of PITIA on the subject property, with six months typical and twelve for first-time investors. Above $3,000,000, cash-out proceeds from the same loan cannot satisfy reserves.
Does rent have to cover the full payment?
A coverage ratio of 1.00 earns full leverage, meaning rent equals the full monthly obligation. Select programs review lower coverage up to $2,000,000, with adjusted LTV and terms, subject to underwriting.
Can I use cash-out on a Kentucky property above $3,000,000?
No. Cash-out is not available above $3,000,000. Between $1,500,000 and $3,000,000, proceeds above 60% LTV are capped at $1,500,000, and scores of 680 and below are excluded in that range. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
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. Reach the team at 828-256-2183 or request a quote. Programs change, nothing here is a commitment to lend, and every file is underwritten individually.
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
Lendmire is a non-QM mortgage brokerage (NMLS# 2371349) arranging DSCR investor loans in 41 markets, including Washington, D.C., through wholesale and investor-lending channels. DSCR loans are evaluated by the lender on rental income rather than personal income, subject to lender guidelines — a fit for LLC-owned portfolios, self-employed investors, and operators scaling beyond conventional loan caps. Recognized as a Scotsman Guide Top Mortgage Workplace in 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. HousingWire — conforming loan limits
2. Redfin — Louisville housing market
3. Zillow — Goshen, KY home values
4. CFPB — Regulation Z, business-purpose exemption
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: 40-Year Fixed vs IO ARM on a Super Jumbo DSCR Loan · Can a Retiree With No Job Qualify for a Super Jumbo DSCR Loan? · How a Multifamily Super Jumbo DSCR Loan Works
Guides: Super Jumbo DSCR Loans in Kentucky
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
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.