The Quick Read: Three separate limits govern this file: the loan-size ladder, the building-type cap, and the coverage adjustment. The lowest one sets your leverage. On a non-warrantable condo, the building cap usually binds before the “super jumbo” label ever applies.
- Non-warrantable condos typically cap at 75% LTV on an investment-property purchase and at a $1,500,000 loan, subject to underwriting.
- Super jumbo generally means roughly $3,000,000 and up, so a non-warrantable condo cannot reach that tier.
- Coverage below 1.00 is a real path through select programs, with LTV and terms adjusted down.
- Rent that covers less than the payment means you fund the gap every month.
- Two appraisals apply above $2,000,000.
Most investors who search this phrase picture one product that combines all three features. That product does not exist in the way the search implies. This guide explains why, then shows how the pieces interact on a real file.
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Rate source: Freddie Mac 30-yr average via FRED® — Federal Reserve Bank of St. Louis · effective Oct 15, 2026
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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.
Key Terms Defined
DSCR (debt service coverage ratio) is monthly rent divided by the full monthly housing obligation. On a condo, that obligation includes association dues.
LTV (loan-to-value) is the loan balance as a percentage of the property’s value.
Super jumbo has no official definition. No regulator sets the line. It is a lender overlay for very large balances, and across our wholesale network it generally means roughly $3,000,000 and up.
Non-warrantable condo is a unit in a building that fails the project standards used by the big mortgage-purchasing agencies. Investor-focused lenders fund these buildings under their own rules.
Sub-1.00 coverage means the ratio is calculated and comes in below 1.00. The lender accepts the gap and adjusts LTV and terms.
No-ratio means the ratio is never calculated. Credit, equity and housing history carry the file instead.
Interest-only period is a stretch of the loan when you pay interest but no principal.
Sub-10 in the search phrase is almost always a typed version of sub-1.0. That is how this guide reads it.
What Does Each Overlay Actually Do?
Each overlay answers a different question. The size ladder asks how big the loan is. The building cap asks what kind of building secures it. The coverage test asks whether the rent supports the payment.
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 property’s rent carries the file, and qualification runs primarily on that rent covering the payment, subject to lender guidelines.
Here is how the three limits sit side by side on an investment-property file.
| Gate | What it controls | Governing figure |
|---|---|---|
| Size ladder | Max LTV by loan amount | 80% to $1M, 75% to $3M on purchase |
| Building type | Cap for non-warrantable | 75% LTV, $1.5M loan |
| Coverage | Full vs. reduced leverage | 1.00 earns full ladder |
| Interest-only | Lifts coverage on the payment | 120 months, 75% max |
All figures are ceilings through select wholesale programs, subject to underwriting.
Why Can’t a Non-Warrantable Condo Be a Super Jumbo?
The loan-size windows barely overlap. Non-warrantable condos cap at a $1,500,000 loan. Super jumbo starts around $3,000,000. Sub-1.00 and no-ratio files top out at $2,000,000.
Our network guidelines do not publish a combined product for these three overlays. They also do not say how the building cap and the sub-1.00 adjustment stack. Treat any combined LTV as a question for underwriting rather than a number you can look up. A broker who quotes you one before the file is reviewed is guessing.
Say you want a condo priced well above the cap. The building limit does not move. You bring more equity until the loan fits under $1,500,000, or you look at a different building or a different structure.
How Does Underwriting Treat the Building First?
The building is classified before anything else, and the label belongs to the project, not to your unit. A unit can be spotless and still sit in a building that fails project standards.
Common triggers include:
- Too much commercial space in the building.
- One owner holding too many units.
- Delinquent association dues.
- Thin reserves.
- Pending litigation.
Underwriters read the condo questionnaire, budget, financials, reserve study, master insurance policy and meeting minutes. Special-assessment notices matter too.
The causes are not equal. A building that is non-warrantable only because of investor concentration can still work. Pending litigation over safety or structure, deed or resale restrictions, or mandatory rental pooling can sink the file under any rental strategy.
The label can also change. Fannie Mae’s condo project standards update changed how established projects are reviewed, which means a building that failed before may pass now. HousingWire reports that the limited review process is gone, so established projects face a full review or a waiver. The investor-concentration cap was retired for established projects, but other agency rules remain. A Michigan condo-law blog notes the single-entity ownership limits and the presale requirement for new projects still apply, and individual lenders may keep stricter overlays.
None of those agency rules governs a DSCR loan. They matter only because they change which buildings carry the non-warrantable label. A DSCR lender in our network may stay stricter than the agencies, and some do.
How Is Coverage Tested on a Condo?
Coverage is monthly rent divided by the full monthly obligation: principal, interest, taxes, insurance and association dues. Dues sit in the denominator, and that is where luxury condos struggle.
Rent does not scale with price the way dues and taxes do. A condo priced at the top of the range can carry heavy dues while renting like a much cheaper unit. Coverage becomes the binding constraint.
At 1.00 or higher, you earn the full leverage ladder, then the building cap trims it. Below 1.00, select programs will review the file, but LTV and terms adjust, subject to underwriting. The adjustment is not a published formula. It works as a grid: weaker coverage moves you into lower leverage buckets, and the grid shifts again with loan size.
Sub-1.00 and no-ratio are not the same thing. Sub-1.00 measures the ratio and accepts the shortfall. No-ratio never computes it. A few lenders in the network review no-ratio files to $2,000,000 through select wholesale programs, subject to underwriting, and they ask for a clean housing history and tighter credit, reserves and LTV.
Which Limit Wins? The Lowest One
Take the tighter of the tests. The loan is sized to the lower of the LTV cap and the largest loan the rent can support. Whichever produces the smaller loan is the one that binds.
Here is the sequence we run on a file:
1. Classify the building. Warrantable condo, non-warrantable condo, or condotel? 2. Apply the building cap. On a non-warrantable condo, that is 75% LTV and $1,500,000 on an investment-property purchase. 3. Apply the size ladder for the loan amount you want. 4. Test coverage. If it clears 1.00, the ladder stands. If it falls short, leverage steps down. 5. Compare the results from the building cap, the size ladder, and the coverage test. The smallest result is your real ceiling. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
On a purchase at $1,000,000 or less, the ladder alone would allow 80% on an investment property. The non-warrantable cap trims that to 75%. Same unit, different building status, different leverage. Building status can decide your leverage before the rent does.
Cash-out is lower still. The ladder gives 75% on a cash-out up to $1,000,000 and 70% from $1,000,000 to $1,500,000, so the ladder can bind below the building cap. Lendmire’s piece on cash-out rules for non-warrantable luxury condos covers that side in detail.
What Does a Worked Example Look Like?
Run the numbers on a $1,200,000 non-warrantable condo purchase, using modeled assumptions. We express everything in ratios and percentages, not payments.
File A: coverage comfortably above 1.00. The size ladder allows 75% LTV on an investment-property purchase in this band, and the building cap also says 75%. Leverage lands at the cap. Credit for the top leverage in this band is typically 700 or higher, and a lower score takes a lower leverage cell.
File B: coverage just under 1.00. The ratio is measured and the gap is accepted. Leverage drops below the 75% cap, and terms adjust. You bring more cash, and you fund the monthly shortfall yourself.
File C: dues-heavy building, coverage under 1.00. The interest-only period can help. Select programs offer 120 months of interest-only on 30- and 40-year terms, up to 75% LTV. The file is qualified on interest, taxes, insurance and dues, which lifts the ratio. The balance does not shrink during that period, and the structure is subject to underwriting. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Notice what did not change: the building cap. In every case it sits on top of the other two tests.
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 Does the General Rule Break?
Four named edge cases change the picture.
Condotels. These hotel-style condo units reach 75% on a purchase and 65% on a refinance, up to $1,500,000. They typically require $250,000 in cash in hand. They are a separate category from a standard non-warrantable condo.
Short-term rentals. Short-term-rental files require coverage of 1.00 or higher and loan amounts up to $2,000,000. Income comes from twelve months of operating history on a refinance, or the appraisal’s short-term-rent analysis on a purchase, at 80% of gross. The investor needs recent experience owning income property, and these files are not 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. For a non-warrantable building, the HOA documents must allow it too. Our piece on super jumbo requirements for luxury short-term-rental operators goes deeper. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Balances above the building cap. If the loan you want exceeds $1,500,000 on a non-warrantable unit, the file does not scale up. It needs more equity, a different building or a different structure.
HOA rental restrictions. A building that bans rentals or forces a rental pool can disqualify the unit regardless of coverage.
What Do the Other Gates Look Like?
LTV is only one gate. Reserves, credit and appraisals apply on the same file.
| Gate | Typical requirement |
|---|---|
| Credit floor | 660, subject to underwriting |
| Reserves | 6 months on the subject; 12 for first-time investors |
| Appraisals | Two above $2,000,000 |
| Vesting | Entity vesting welcome, no layered entities |
Credit for the best leverage in a given band runs higher than the floor. The appraised market rent matters as much as the sales value, because it drives the coverage test. Across the network, most programs want the rent schedule supported by the appraiser, not just the lease.
Reserves are not optional on a thin-coverage file. If you fund a monthly gap, lenders want to see you can.
What If the File Does Not Clear?
Change one lever at a time, in this order:
1. Lower the balance. A smaller loan raises coverage and lowers LTV at the same time.
2. Add equity. More cash down moves you into a better bucket on the grid.
3. Restructure to interest-only. On dues-heavy buildings, this is often the cleanest lift.
4. Choose a different building. A warrantable condo in the same area may sidestep the building cap.
5. Change the product. Above the building cap, a different property type or program may fit better.
Clearing 1.00 does not mean the property cash flows. The ratio ignores repairs, vacancy, management and capital expenses. A sub-1.00 file is a trade-off: you accept negative monthly carry in exchange for owning the asset. 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.
Resale deserves a thought too. Future buyers may also have fewer financing options while the project stays ineligible, which can narrow your exit.
Frequently Asked Questions
Does a ratio under 1.0 rule me out?
No. Expect lower leverage and a bigger cash commitment than a file that clears 1.00.
Does passing the ratio mean the condo cash flows?
Not necessarily. The ratio compares rent to the housing obligation only. Repairs, vacancy and management sit outside it, so a file can pass and still lose money after real-world costs.
Can a non-warrantable condo reach super jumbo balances?
Not in our network. Non-warrantable condos typically cap at 75% LTV and a $1,500,000 loan, while super jumbo generally starts around $3,000,000. A pricier unit needs more down payment or a different structure.
Is no-ratio the same as sub-1.0?
No. Sub-1.00 calculates the ratio and accepts the gap. No-ratio skips the calculation. A handful of lenders in the network review no-ratio files to $2,000,000, subject to underwriting, with tighter credit, reserves and LTV.
What does sub-10 mean in this search?
It is almost always a typed version of sub-1.0, meaning coverage below 1.00. Some people also type it meaning a loan under $10 million, but the program ladder tops out at $10,000,000 and non-warrantable condos stop far below that.
The Takeaway
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 that arranges business-purpose financing through select lenders in its wholesale network across 41 markets, including Washington, D.C. For the full picture of how these loans work, read the complete DSCR loans guide.
On a luxury condo, the building decides how much you can borrow, the rent decides whether it works, and the lower of those two numbers is the one you plan around.
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 DSCR and non-QM mortgage broker, Lendmire — NMLS# 2371349 — connects investors with wholesale lending channels across 41 markets, including Washington, D.C. The property’s rental income, not the borrower’s tax returns, is central to lender review, which works for self-employed operators and portfolios beyond four financed properties. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Fannie Mae Capital Markets: condo project standards update
2. HousingWire: condo financing overhaul
3. Michigan Community Association Law Blog: 2026 condominium lending guidelines
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 Super Jumbo DSCR Condotel Income Rules Work for Short-Term Rental Owners · Super Jumbo DSCR vs Regional Bank Condo Loan for a Portfolio Investor · How to Meet Super Jumbo DSCR Sub-1.0 LTV Requirements on Acreage Rentals
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.