The Quick Read: A super jumbo DSCR loan lets a founder finance a large rental property based on the property’s rent, not on a salary that no longer exists. The loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Sale proceeds count as assets and reserves, never as income. Lenders still review credit, reserves, collateral and the paper trail behind your money.
- Business-purpose investment property only, never a home you live in.
- Loan sizes run from $150,000 to $10,000,000 through select wholesale programs, with leverage stepping down as the balance grows.
- Coverage of 1.00 or higher earns full leverage; lower coverage is a real path at reduced leverage, subject to underwriting.
- The credit floor is 660 on loans to $3,000,000 and 700 above that.
- Proving where the sale money came from is usually the hardest part of the file.
You sold the company. The wire hit. Now a bank wants two years of traditional personal-income documentation, and your most recent return describes a business that no longer exists. That mismatch is exactly why founders end up looking at this product.
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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” Means Here
“Super jumbo” is an industry label, not a legal category. No regulator defines it. In practice it means a large-balance loan on an investment property, and lenders draw the line in different places.
A DSCR loan (debt service coverage ratio loan) tests whether a property’s rent covers its monthly obligation. It qualifies the building, not your paycheck. Across the wholesale network Lendmire works with, the portfolio investor program runs from $150,000 to $10,000,000. Lendmire’s standard DSCR program stops at $3,000,000, and this larger ladder carries qualified investors past it. Everything below is subject to underwriting.
Lendmire is a broker. It arranges these loans through select lenders in its wholesale network across 41 markets, including Washington, D.C. It does not lend.
How Does the DSCR Test Work?
The test is a simple division. Monthly eligible rent goes on top. The full monthly obligation sits underneath: principal, interest, taxes, insurance and any association dues, together called PITIA.
A result of 1.00 means rent exactly covers that obligation. A result of 1.25 means rent covers it with a cushion. Below 1.00, rent falls short.
Here is the plain version. Say a founder buys a luxury rental and the rent supports a ratio near 1.2x. That file sits in good territory for full leverage. Now say the property carries heavy taxes and insurance, as many high-end homes do. The ratio can slip under 1.00 even though the buyer could write a check for the whole house. Wealth does not rescue weak coverage.
Rent is established through an appraisal rent analysis. For a one-unit rental, appraisers commonly use Fannie Mae‘s Form 1007 rent schedule. For two to four units, Form 1025 applies. Those forms are named here for illustration only, since DSCR loans are not agency products.
Why a Company Sale Changes the Picture
Before the sale, your income story was strong. After it, your current income may be close to zero on paper. A bank jumbo built on personal income and debt-to-income ratios struggles with that.
A DSCR file flips the story. You were an income borrower. Now you are an asset borrower buying a property that pays for itself. Business-purpose loans are reviewed differently from a standard owner-occupied mortgage, and DSCR underwriting does not run a personal debt-to-income calculation.
That does not mean no rules. The lender still sets documented policy on credit, assets, reserves and collateral. Think of it as moving the test from you to the property, not removing the test.
How Lenders Treat Your Sale Proceeds
Proceeds are assets. They help with cash to close and they sit in reserves. They do not count as monthly income.
Most programs across our network want 6 months of PITIA as reserves on the subject property. First-time investors typically need 12. On interest-only loans the reserve count runs on interest, taxes and insurance (ITIA). There are no extra reserves for your other financed properties, and up to 20 financed properties are allowed.
One firm rule at the top of the ladder: cash-out proceeds never satisfy reserves above $3,000,000. Reserves come from your own seasoned money.
Expect the lender to trace the funds. A founder should have this ready:
- The closing or settlement statement from the company sale.
- Wire confirmations showing money moving into your accounts.
- Statements from every account that received or holds the funds.
- A clear explanation of any transfers between accounts.
Moving money around mid-file is the classic mistake. Every transfer becomes a question. Park the funds where they landed, keep records, and answer the paper trail before it is asked for.
Taxes belong in this conversation. A sale of a capital asset produces a capital gain or loss, and IRS Topic 409 explains the long-term versus short-term difference. Net proceeds after tax are what you can actually spend as down payment and reserves. Tax treatment varies; consult a qualified professional before counting any figure as spendable.
What Does the Leverage Ladder Look Like?
Leverage steps down as the loan grows. These are ceilings at DSCR of 1.00 or higher, through select wholesale programs, subject to underwriting. The bands apply to the loan amount, not the purchase price. Multiply price by leverage first, then find the band.
| Loan amount | Purchase | Rate-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 | 60% on review | 60% on review | — |
| $6M–$10M | 60% on review | 60% on review | — |
The top cell in each band needs a certain score. Roughly, 660 or higher supports the top leverage in the first band. A 700 supports it from $1,000,000 to $1,500,000 and from $3,000,000 up. A 720 supports it between $1,500,000 and $3,000,000. A lower score takes a lower leverage cell within the same band.
The program floor is 660 on loans to $3,000,000 and 700 above $3,000,000. Above $3,000,000 the super jumbo overlay adds more: 0x30x24 mortgage history, 48-month seasoning after any credit event, citizens and permanent residents only, no rural property, and no more than ten acres on a non-rural one. Above $4,000,000 every request is reviewed case by case before submission, purchase or rate-and-term only.
Above $2,000,000, expect two appraisals.
The 75% purchase ceiling on a 70% cash-out line sounds odd until you notice the cash-out column. The lender gives less leverage when you pull money out. Cash-out proceeds are unlimited at or below 60% LTV, capped at $1,500,000 above 60%, and not available above $3,000,000. Borrowers with credit of 680 or below face no cash-out above $1,500,000. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
A Founder-Scale Example
Run the numbers on a luxury rental priced at $2,800,000. At 75% on a purchase, the loan lands in the $2M–$3M band, so two appraisals apply and the top cell needs a 720 score. That leaves 25% as down payment, plus reserves seasoned in your own accounts.
Now suppose the property’s rent supports coverage around 1.1x. The file clears the 1.00 mark for full leverage in the band. Suppose instead coverage lands near 0.90. Programs below 1.00 exist through select lenders in the network, but LTV and terms adjust, subject to underwriting. The founder either brings more cash, picks a different property, or restructures.
This is a hypothetical illustration, not a quote or approval.
When Coverage Is Thin: Interest-Only
Some programs offer a 120-month interest-only period on 30- and 40-year terms, up to 75% leverage, with coverage of 0.75 or better, qualified on ITIA. That can make a thin file work on paper. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
There is a trade-off. When the interest-only window ends, the payment steps up because principal begins amortizing. A founder planning a long hold should size the property for the later payment, not just the early one. A short hold with a planned sale or refinance fits interest-only better.
Where the Rules Bend
Here is where the general picture breaks down.
Short-term rentals. They qualify on documented operating history at a discount to gross rent. Specifically: twelve months of operating history on a refinance, or the appraisal’s short-term-rent analysis on a purchase, at 80% of gross. Coverage must be 1.00 or higher, loans run to $2,000,000, and you need to be an experienced investor (twelve months owning income property in the last thirty-six). 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. Permission to operate gets documented per property.
No-ratio files. Through select wholesale programs, a handful of lenders in the network offer no-ratio files to $2,000,000 with a seven-year clean housing history and 0x30x24, subject to underwriting. No minimum ratio is published, and leverage is reduced.
Condos. Warrantable and non-warrantable condos both work. Non-warrantable condos reach 75% and $1,500,000. Condotels reach 75% on a purchase and 65% on a refinance, up to $1,500,000, with $250,000 cash-in-hand.
Rural collateral. Five acres or less, up 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.
Earn-outs, holdbacks and escrow. Money not yet in your account is not an asset the lender can count. A pending earn-out helps your story but not your reserves. Rollover equity and stock consideration are harder to value, so lenders may discount them or ignore them.
Entity timing. Entity vesting is welcome, with no layered entities. Business-purpose loans to entities fall outside the consumer mortgage rules under 12 CFR 1026.3, subject to program terms. A newly formed LLC is common, but moving title on an owned property can bring seasoning questions. Read Lendmire’s piece on how seasoning rules work for founders after a company sale before restructuring.
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 DSCR Cannot Do
It cannot finance the home you live in. The loan is business purpose: acquiring or refinancing a rental. Rental property with more than two units is generally treated as business purpose, and for one or two units the lender looks at the actual purpose of the loan.
It also cannot rescue a property with weak rent. And it will not turn a one-time payout into a recurring income stream. For that, founders look at other paths.
Which Path Fits a Post-Exit Founder?
| Your situation | What the lender reads | Likely path |
|---|---|---|
| No new income, buying a rental | Property rent plus assets | DSCR |
| Earn-out or consulting income | Deposits over time | Bank-statement or DSCR |
| Heavy liquid assets, wants income credit | Assets divided over months | Asset-based non-QM |
| Buying a home to live in | Personal income and DTI | Not DSCR |
A founder who needs a residence should use a different product. The rental portfolio is where DSCR earns its keep.
Common Mistakes
- Counting proceeds as income instead of assets.
- Maxing leverage into thin coverage.
- Refinancing a property just bought, without checking seasoning. Lendmire’s article on super jumbo cash-out rules for founders covers that sequence.
- Moving proceeds between accounts during the file.
- Spending the full gross sale amount before the tax bill lands.
For the wider mechanics, see Lendmire’s complete DSCR loans guide.
Key Terms Defined
DSCR: The ratio of monthly eligible rent to the full monthly obligation on the property.
PITIA: Principal, interest, taxes, insurance and association dues, the full monthly cost of owning the property.
Reserves: Seasoned liquid assets that remain after closing, counted in months of PITIA.
Super jumbo: An industry label for a very large loan balance, with no regulatory definition.
No-ratio: A path through select programs with no coverage test, reduced leverage and strict credit history, subject to underwriting.
Frequently Asked Questions
Can I use my own home for this loan?
No. These are business-purpose loans on investment property. A primary residence needs a different, income-based mortgage.
Do my sale proceeds count toward reserves?
Yes, once documented and seasoned in your accounts. Typical programs want 6 months of PITIA on the subject property, and 12 for first-time investors. Cash-out proceeds never satisfy reserves above $3,000,000.
Do I need to wait a year after the sale?
The file turns on documenting where the money came from, not a waiting period. Underwriting looks at the paper trail, credit and the property. Each lender sets its own policy, subject to underwriting.
Can I buy through a new LLC?
Often yes, since entity vesting is welcome with no layered entities. Program terms and lender review apply, and title moves on owned property can raise seasoning questions.
How large a cash-out check can I take?
Proceeds are unlimited at or below 60% LTV. Above 60% they cap at $1,500,000, and there is no cash-out above $3,000,000. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
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 (NMLS# 2371349), a non-QM mortgage broker serving investors in 41 markets including Washington, D.C., helps structure DSCR scenarios commonly evaluated around a property’s rental income rather than personal income paperwork, subject to lender guidelines. A Scotsman Guide Top Mortgage Workplace in 2025 and 2026, Lendmire places loans through wholesale investor lenders and is not a direct lender.
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References
1. Fannie Mae
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 You Pay Principal During the IO Phase of a Super Jumbo DSCR Loan? · How Big Can a 40-Year Super Jumbo DSCR Loan Be? · Can a Business Owner Get a 40-Year 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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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.