The Quick Read: The best provider for this loan depends on your property, credit, and leverage, and no single ranking can answer that for you. Lendmire is a mortgage broker that matches a large-balance rental file to select wholesale lenders, so the useful question is which program fits your numbers. Paying off a non-purchase-money second inside a new first loan is typically treated as a cash-out, even if no cash reaches you.
- Cash-out leverage typically steps down with loan size: 75% to $1,000,000, 70% to $1,500,000, and 60% to $3,000,000, subject to underwriting.
- There is no cash-out above $3,000,000, so a payoff-only refinance there is not available as a cash-out.
- Coverage of 1.00 earns full leverage; reduced-coverage paths exist through select programs, with LTV and terms adjusted.
- Credit floors run 660 on loans to $3,000,000 and 700 above, with six months of reserves on the subject property. The top cell in each band needs a higher score: 700 in the $1,000,000 to $1,500,000 band and 720 from $1,500,000 to $3,000,000.
- Qualification rests primarily on property-level rental income covering the payment, subject to lender guidelines.
Here’s the catch with the word “providers.” A roundup would imply one lender wins for everyone. Nothing in this market works that way, so this guide explains how these programs operate and how to find the right fit. A broker that shops several wholesale lenders can then match your file to the program.
What Does “Super Jumbo” Actually Mean?
Super jumbo is a trade label, not a regulatory category. No agency defines it. Lenders commonly use roughly $3 million as the line, but each draws it differently.
The contrast is the conforming limit. The FHFA baseline for one-unit properties is $832,750 for 2026, with a high-cost ceiling of $1,249,125. Those limits don’t cap DSCR loans. DSCR loans are non-QM products, and Scotsman Guide reports that a non-QM jumbo loan can reach $3 million or more.
Lendmire’s standard DSCR program stops at $3,000,000. A portfolio investor program carries qualified borrowers from $150,000 to $10,000,000, though cash-out stops at $3,000,000 and every request above $4,000,000 is reviewed case by case, subject to underwriting. Short-term-rental files and reduced-coverage files stop at $2,000,000.
Key Terms Defined
Super jumbo: An industry label for loan balances well above the conforming and standard jumbo ranges, with tighter leverage.
DSCR: Monthly rent divided by the full monthly obligation: principal, interest, taxes, insurance, and any HOA dues.
Second mortgage: A lien behind the first, often a HELOC or private loan.
Cash-out refinance: A new first loan that exceeds the old payoffs, or is treated as if it does under the program’s rules.
Seasoning: The time that must pass between a prior loan or line and the new cash-out.
Business-purpose loan: Financing for an investment property, reviewed differently from a standard owner-occupied mortgage.
How Does Underwriting Treat a Second-Mortgage Payoff?
Underwriting starts by classifying the transaction. Across the wholesale network, paying off a non-purchase-money second, such as a HELOC used for renovations, is typically treated as cash-out. That holds even when the borrower receives nothing. The cash-out leverage ladder and credit needs apply, not the higher rate-and-term cells.
Lenders set their own treatment, so confirm it before assuming rate-and-term pricing. The lower tier is easy to assume and easy to get wrong.
Next, the file identifies what the second is. A HELOC is an open-end line of credit you can borrow against repeatedly, with a draw period followed by repayment. The FTC notes these lines typically carry variable pricing. The payoff letter must show the drawn balance, and the line is closed or frozen at payoff.
Then comes the coverage test, step by step:
1. Total the payoffs: the first lien, the second, accrued interest, and costs.
2. Read the leverage cell for the resulting loan amount, not the purchase price or property value.
3. Test rent against the full monthly obligation on that larger loan.
4. If rent can’t support the loan at the required ratio, the loan shrinks.
A bigger payoff means a bigger payment, so coverage falls. Clearing 1.00 is also not the same as positive cash flow. The ratio counts only the payment, not repairs, vacancy, or management.
Rent evidence is usually the lower of the lease or the appraiser’s market rent. Appraisers commonly document it on forms such as the Form 1025 for two- to four-unit properties and the Form 1007 rent schedule. Those are simply the names of the forms and set no program rules.
The Leverage Ladder at Large Balances
Leverage drops as the loan grows. Every figure below is a ceiling through select wholesale programs, subject to underwriting. The bands read the loan amount, not the price.
| Loan amount | Purchase | Rate-and-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% | 60% | — |
| $6M–$10M | 60% | 60% | — |
Above $4,000,000, every request is reviewed case by case before submission, and only purchase or rate-and-term is considered, on review. The top cell in each band needs a certain score: 660 or better for the first band, 700 for the $1M–$1.5M band, and 720 for the $1.5M–$3M bands. A lower score takes a lower cell in the same band. Above $3,000,000, 700 is the program floor, with 0x30x24 mortgage history.
Cash-out proceeds are unlimited at or below 60% LTV and capped at $1,500,000 above 60%. Borrowers at 680 or below get no cash-out above $1,500,000. Cash-out proceeds never satisfy reserves. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Because the band reads the loan, size is a real lever. A slightly smaller loan can land in a higher-leverage band.
Where the General Rule Breaks
The payoff pushes the loan past $3,000,000. There is no cash-out in that range. Options include a smaller loan that fits the ladder, paying the second down first, or staging the debt. Above $4,000,000, every request is reviewed case by case before submission, purchase or rate-and-term only.
Recent HELOC seasoning. Programs commonly apply a seasoning clock between a recently opened line and a refinance. A line opened just before the refinance may be treated as cash-out when it is paid off. Confirm the clock with your broker before drawing.
HELOC draw structure. Some plans require an initial draw when the line is opened. That balance is part of the payoff total.
Leaving the second in place. Keeping it requires the junior holder to subordinate, and a cash-out thins the equity cushion under it. A holder that won’t cooperate pushes the file toward a payoff inside the new first loan.
Short-term-rental collateral. Short-term-rental files run to loan amounts of $2,000,000, with coverage of 1.00 or higher, and the cash-out ceilings follow the same ladder as other rentals, subject to underwriting. Income is twelve months of operating history on a refinance, counted at 80% of gross. Short-term rental rules are set locally and change by city, county, HOA, and property type, so investors should document permission for the specific property before relying on projected rental income.
Property type. One-to-four units qualify. Non-warrantable condos go to 75% and $1,500,000. Above $3,000,000: no rural property, and no more than ten acres on a non-rural one.
Low appraisal. A low value shrinks the band or the ratio. Two appraisals are required above $2,000,000. Options are bringing cash, a smaller draw, or waiting.
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 the Decision Looks Like in Practice
Run the numbers on a luxury rental valued at $3,200,000 with a first lien and a HELOC. At 60% cash-out LTV, the loan lands near $1,920,000, inside the $1.5M–$3M cash-out band, and proceeds are unlimited at or below 60%. If the combined payoffs fit and rent clears 1.00, the structure is on the table, subject to underwriting. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Now push the value to $5,500,000 with the same payoff stack. The cash-out ladder offers nothing above $3,000,000, so the cash-out route is closed there regardless of the property’s rent.
Several tradeoffs are worth weighing:
- Combined payoff versus keeping the first. A combined payoff reprices the whole balance, not just the new cash. You gain one lien and one payment, and you lose a low-cost first mortgage if you have one. If the first is cheap and the second is the problem, refinancing only the second may be the stronger play.
- Interest-only runway. A 120-month interest-only period is available on 30- and 40-year terms up to 75%, with coverage of 0.75 or better, qualified on interest, taxes, and insurance. Higher leverage and interest-only don’t automatically stack in every cell.
- Coverage below 1.00. Programs below 1.00 are available through select lenders in the network, but LTV and terms adjust. The no-ratio path is available to $2,000,000 only through select programs, within an envelope of a seven-year clean housing history and 0x30x24, subject to underwriting.
How to Evaluate Providers (Without a Ranked List)
The right program depends on property type, credit, leverage need, and documentation. Compare on these criteria:
- Loan-amount band and the leverage cell it triggers. Ask which band your payoff total lands in.
- Second-lien treatment. Ask whether the payoff is cash-out and how seasoning is counted.
- Reserve rules. Six months on the subject property is typical, 12 for first-time investors, and cash-out proceeds don’t count.
- Appraisal and rent method. Two appraisals above $2,000,000 is a common overlay.
- Vesting. Entity vesting is welcome, with no layered entities.
- Property and credit overlays. Rural, acreage, and score limits vary by lender.
| Provider type | What it offers | Tradeoff |
|---|---|---|
| Mortgage broker | Shops several wholesale lenders | Matches scenario to program |
| Single wholesale lender | One set of guidelines | Narrower fit |
| Portfolio lender | Custom judgment | Relationship needed |
| Large retail lender | Familiar process | Often income-based underwriting |
That’s the case for a broker that sees many programs. Lendmire arranges these loans across 41 markets, including Washington, D.C., through select lenders in its wholesale network. DSCR financing qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Entity-held files are reviewed depending on program guidelines.
For the full mechanics, see Lendmire’s complete DSCR loans guide. For a related decision, read Lendmire’s piece on a super jumbo cash-out versus a portfolio loan to pay off a hard money second.
What to Prepare
A typical file includes:
- Payoff statements for both liens, including the HELOC draw history.
- The lease or rent evidence.
- Entity documents if vesting in an LLC.
- The appraisal, plus a second above $2,000,000.
- Proof of six months of reserves on the subject property.
The market itself is pushing more investors this way. Scotsman Guide reports DSCR volume grew more than 50% year over year, becoming the largest share of non-QM production.
Frequently Asked Questions
Does paying off a HELOC with no cash back count as rate-and-term?
Usually not on a non-purchase-money second. Across the network it is treated as cash-out, so the cash-out leverage ladder applies. Lenders set their own treatment, so confirm before you assume the higher cell.
What if my combined payoff is above $3,000,000?
Cash-out isn’t available above that size. Alternatives include a smaller loan, paying the second down beforehand, or staging the debt. Requests above $4,000,000 are reviewed case by case, purchase or rate-and-term only.
Can the proceeds count toward reserves?
No. Reserves are six months on the subject property, 12 for first-time investors, and cash-out proceeds never satisfy them. Some lenders outside the network allow it, so rules vary.
Is this available for my personal residence?
No. These are business-purpose loans for investment property. A second on an owner-occupied home needs a different product.
Do I need to show personal income?
Qualification runs primarily on property-level rental income covering the payment, subject to lender guidelines. Credit, reserves, and appraisal still apply, and every file is underwritten individually.
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.
For the mechanics of pulling equity out of a rental property, see Lendmire’s guide to cash-out refinance on an investment property.
Lendmire’s self-employed mortgages page presents both super jumbo programs, bank statement and DSCR, side by side.
About Lendmire
A non-QM mortgage broker (NMLS# 2371349), Lendmire arranges DSCR financing for real estate investors in 41 markets — 40 states plus Washington, D.C. Because deals are underwritten primarily on property cash flow rather than personal income documentation, the structure suits self-employed buyers and entity-owned portfolios. Lendmire places loans through wholesale investor lenders; it is not a direct lender.
Scotsman Guide named Lendmire a Top Mortgage Workplace in 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. $832,750 for 2026, with a high-cost ceiling of $1,249,125
2. Scotsman Guide – One out of 20 mortgages are non-QM
4. FTC – Home Equity Loans and HELOCs
5. Scotsman Guide – DSCR lending is surging
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: Super Jumbo DSCR Cash-Out Refinance vs Portfolio DSCR Loan Through a Mortgage Broker · How to Plan and Use a Super Jumbo DSCR Cash-Out Refinance to Pay Off a Second Mortgage · Can You Get Approved for a Super Jumbo DSCR Cash-Out Refinance After Delisting?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- 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.