The Quick Read: A super jumbo DSCR loan is reviewed primarily on property-level rental income covering the full monthly obligation, subject to lender guidelines. The bigger the balance, the lower the leverage, the stricter the credit, and the deeper the reserves. A second appraisal is added above $2,000,000.
- On a purchase of an investment property, typical leverage tops out at 80% up to $1,000,000 and 75% from $1,000,000 to $3,000,000, subject to underwriting.
- Above $3,000,000, purchase leverage drops to 65%. Above $4,000,000 it is 60% on review, case by case.
- The credit floor is 660 on loans to $3,000,000 and 700 above $3,000,000. The score a band’s top leverage needs is higher.
- Reserves are typically six months on the subject property, or twelve for first-time investors.
- Cash-out is limited at the top and unavailable above $3,000,000.
What Does “Super Jumbo” Actually Mean?
“Super jumbo” is a label, not a legal category. Each lender decides where it starts. Across the wholesale network Lendmire works with, the label usually means a loan too large for a lender’s standard investor program.
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Run the numbers in Washington
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.
Lendmire’s standard DSCR program stops at $3,000,000. A separate 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.
A DSCR loan (debt service coverage ratio loan) is a business-purpose loan on a rental property. The lender asks whether the rent covers the payment. It does not start with your personal-income documentation. The rental has to carry the loan, which is why size matters so much. A bigger loan needs more rent, more equity, and more cushion.
Requirements by Loan Size
Leverage steps down as the balance grows. Every figure below is a ceiling through select wholesale programs, assumes coverage of 1.00 or higher, and is subject to underwriting.
| Loan size | Purchase / rate-and-term LTV |
|---|---|
| $150K–$1M | 80% |
| $1M–$1.5M | 75% |
| $1.5M–$2M | 75% |
| $2M–$3M | 75% |
| $3M–$4M | 65% |
| $4M–$6M | 60%, on review |
| $6M–$10M | 60%, on review |
Credit works like this. The top cell in the first band needs 660 or better. The $1M–$1.5M band needs 700 or better for its top leverage. The $1.5M–$3M bands need 720 or better. The bands above $3M need 700 or better. A lower score inside a band usually means a lower leverage cell, not a denial.
The program floor is 660 on loans to $3,000,000. Above $3,000,000 the super jumbo overlay raises it to 700.
Cash-out follows its own ladder. On a cash-out of a standard rental, 75% is the ceiling up to $1,000,000. It steps to 70% from $1,000,000 to $1,500,000, then 60% from $1,500,000 to $3,000,000. Above $3,000,000 there is no cash-out. Above $4,000,000, every request is reviewed case by case before submission, and only for purchase or rate-and-term.
Cash-out proceeds are also capped. Proceeds are unlimited at or below 60% LTV and capped at $1,500,000 above 60%. Borrowers with credit of 680 and below get no cash-out above $1,500,000. Exact terms depend on lender guidelines, property type, leverage, and a full review of the file.
How Underwriting Works, Step by Step
Here is the sequence a lender follows on a high-balance rental. Each step builds on the one before it.
1. Purpose and collateral. The loan is for business purposes and secured by an investment property of one to four units. Warrantable and non-warrantable condos are eligible. Non-warrantable condos run to 75% and $1,500,000.
2. Valuation and rent. The appraiser gives an opinion of value and of market rent. For a vacant or newly bought property there is no lease, so that rent opinion carries the file. Above $2,000,000, two appraisals are required.
3. The coverage test. The lender divides monthly rent by the full monthly obligation: principal, interest, taxes, insurance, and any association dues. That obligation is PITIA. A result of 1.00 means rent equals the obligation. At 1.00 or higher, a file earns full leverage.
4. Credit review. The floor is 660 on loans to $3,000,000. Above $3,000,000, the overlay asks for 700, a clean 0x30x24 housing history, and 48 months since any credit event. It is open to citizens and permanent residents only.
5. Assets and reserves. Typically six months of PITIA on the subject property, or ITIA on an interest-only loan. First-time investors need twelve months. Other financed properties add no extra reserves, and a borrower can hold up to 20. Above $3,000,000, cash-out proceeds cannot satisfy reserves.
6. Entity and title. Entity vesting is welcome, with no layered entities, per lender program requirements. Title, insurance and entity documents still get reviewed, along with the people behind the entity.
A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. That does not mean nothing else is reviewed. Credit, assets, appraisal, entity and insurance all still matter. Lendmire’s complete DSCR loans guide covers the basic mechanics. This article covers what changes at the top.
Where Does Washington’s Conforming Limit Fit?
It only matters as a line on the map. The conforming loan limit is the one government-set number in this space. The FHFA conforming loan limit addendum shows a baseline for a one-unit property of $832,750. The local limit rises above that where 115% of the local median home value exceeds the baseline, and it cannot exceed 50% above the baseline. HousingWire reports that the baseline rose 3.25% and puts the high-cost ceiling at $1,249,125.
In Washington, costlier counties around Seattle, including King County, carry a higher limit than most of the state. Check your county’s current figure on the FHFA table before you decide which tier you are in.
A loan above the local limit is a jumbo. A super jumbo is a bigger jumbo, and the cutoff is whatever the lender says it is. DSCR loans sit outside agency rules, so the conforming limit is a size marker for you and not a DSCR requirement.
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 page describes the business-purpose exemption. A loan that is really for personal use cannot safely carry that label.
In a high-price market, rents often lag prices, so coverage tightens as the balance climbs. The property has to earn the loan.
Worked Example: One File That Passes, One That Does Not
These are modeled assumptions, not market data. Take a purchase priced at $2,800,000 at 75% LTV. The loan lands above $2,000,000, so two appraisals apply. Say the appraiser’s rent opinion supports roughly 1.15x coverage of the full monthly obligation. The credit score clears 720, the borrower holds the reserves, and the file sits inside the ladder. That file is a candidate for full leverage, subject to underwriting. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Now run a second file with the same price and the same loan size. This time the rent covers about 0.90x of the obligation. At 1.00 it earned full leverage, and at 0.90 it does not. The borrower has two options for a lender to review:
- Lower the leverage. A smaller loan means a smaller obligation, which lifts the ratio.
- Use interest-only. Interest-only runs for 120 months on 30- and 40-year terms, to a 75% maximum, with coverage of 0.75 or better. The file is qualified on ITIA rather than the full payment, so coverage improves, subject to underwriting.
The sub-1.00 path is not on this list because it stops at $2,000,000. A $2,800,000 loan is above that, so it cannot use it. Nothing here is a promise of approval. It shows which lever moves the ratio, and the answer is usually leverage or loan structure.
What About Sub-1.00 and No-Ratio Files?
Coverage from 0.75 to 0.99 is a real path through select programs, to $2,000,000 at reduced leverage. LTV and terms adjust, subject to underwriting.
No-ratio files reach $2,000,000 only through select wholesale programs, subject to underwriting. They require a seven-year clean housing history and 0x30x24. No minimum ratio is published for this path, and it is not a shortcut. The borrower’s credit, reserves and LTV carry more of the load.
The practical point is that coverage and leverage trade against each other. Weaker coverage means less leverage. Above $2,000,000, sub-1.00 and no-ratio are off the table.
Short-Term Rentals at This Size
A short-term rental can qualify on documented operating history instead of a lease. The file needs coverage of 1.00 or higher, and loans run to $2,000,000.
- On a refinance, income is twelve months of operating history.
- On a purchase, income comes from the appraisal’s short-term-rent analysis.
- In both cases, the lender counts 80% of gross income.
- The borrower must be an experienced investor, with twelve months owning income property in the last thirty-six.
- This is not available 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 to operate must be documented for the specific property.
Where the Rules Bend
A few edge cases change the answer:
- Rural and acreage. Rural collateral of five acres or less goes to 75%, and only on loans at or below $3,000,000. Above $3,000,000: no rural property, and no more than ten acres on a non-rural one. Up to twenty acres is allowed on loans to $3,000,000.
- Condotels. These run to 75% on a purchase and 65% on a refinance, up to $1,500,000, with $250,000 cash-in-hand.
- Vacant or new purchases. With no lease, the appraiser’s rent opinion carries the whole file.
- First-time investors. Reserves double to twelve months.
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.
What Stops Files First
Files stall for the same few reasons. In rough order:
1. Rent support. The appraiser’s rent opinion comes in below what the borrower assumed.
2. Reserves. The cash exists but sits in the wrong place, or comes from cash-out proceeds above $3,000,000.
3. Credit history. A recent housing late or a credit event inside the seasoning window.
4. Property fit. Rural collateral, too many acres, or a condo project that fails review.
5. Borrower eligibility. Above $3,000,000, citizens and permanent residents only.
Check each before you submit anything. Fixing one at the start is easier than fixing it mid-file.
Pre-Application Checklist
- Borrower: credit report, housing history, and proof of citizenship or permanent residency.
- Funds: statements showing six months of reserves on the subject property, or twelve if this is your first investment.
- Property: address, type, unit count, acreage, and condo project details if relevant.
- Rent: a lease if one exists, or a short-term-rental history if it applies.
- Entity: formation documents and vesting plan, with no layered entities.
Tax treatment varies; consult a qualified professional before relying on any deduction.
Is This the Right Loan?
Check whether the deal fits a lower tier first. If the balance can come down to $3,000,000 or less, the standard program applies, with a lighter credit overlay. If rents are weak, a bank-statement loan might work better, since it is reviewed on documented income under the applicable program, subject to lender guidelines. Lendmire’s piece on qualifying for a super jumbo bank statement loan in Washington covers that route. Super jumbo DSCR works best when the property’s rent carries the loan and the borrower has equity to spare.
Key Terms Defined
DSCR: monthly rental income divided by the full monthly obligation on the property.
PITIA: principal, interest, taxes, insurance, and association dues. ITIA drops the principal.
LTV: loan-to-value, the loan amount as a percentage of the property’s value.
Reserves: liquid cash a borrower must hold after closing, counted in months of PITIA.
Seasoning: the waiting period after a credit event before a lender will approve a new loan.
Non-warrantable condo: a condo project that fails standard lender eligibility rules, usually over ownership mix or litigation.
Conforming limit: the government-set loan size above which a loan is called a jumbo.
Frequently Asked Questions
Do I need personal-income documentation for a super jumbo DSCR loan?
The loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Personal income is not the test. Credit, assets, reserves, appraisal and entity documents are still reviewed.
What credit score do I need?
The floor is 660 on loans to $3,000,000 and 700 above $3,000,000. The score for top leverage in a band is higher, so a lower score usually means lower leverage, subject to underwriting.
Can I borrow with coverage below 1.00?
Yes, through select programs to $2,000,000 at reduced leverage.
How much cash-out is available?
It depends on size. Cash-out on a standard rental tops out at 75% up to $1,000,000, steps down above that, and is unavailable above $3,000,000. Proceeds are capped at $1,500,000 above 60% LTV. Final terms depend on lender guidelines, property type, leverage, and the borrower’s credit picture.
Can I use an LLC to borrow?
Yes. Entity vesting is welcome on these files, with no layered entities, subject to program terms. The lender still reviews the people behind the entity, including their credit, assets and reserves.
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. Lendmire is a broker arranging business-purpose financing through select lenders in its wholesale network across 41 markets, including Washington, D.C. Nothing here is a commitment to lend.
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. DSCR eligibility is generally reviewed around property-level rental income rather than personal income, subject to lender and program guidelines, a fit for self-employed investors and LLC-owned portfolios. Lendmire was 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. FHFA conforming loan limit addendum
2. HousingWire: conforming loan limit announcement
3. CFPB Regulation Z, Section 1026.3
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 to Qualify for a Super Jumbo DSCR Loan for Tower Buyers in Non-Warrantable Buildings · How Big Can an Interest-Only Super Jumbo DSCR Loan Be? · Can a Retiree Qualify for a Super Jumbo DSCR in a Trust or LLC?
Guides: Super Jumbo DSCR Loans in Washington
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.