The Quick Read: The best provider for your file depends on the loan amount, the property, your credit, and how much cash you need, so judge providers by how their programs handle two appraisals rather than by a ranking. On programs in Lendmire’s wholesale network, a second appraisal is typically ordered once the loan passes $2,000,000, and the lower of the two values generally drives the loan. Every figure below is subject to underwriting.
- The trigger is the loan amount, not the property price.
- The lower supported value generally sets the loan, so a weak second report shrinks proceeds.
- On a cash-out refinance, 60% LTV is the ceiling from $1,500,000 to $3,000,000, and above $3,000,000 there is no cash-out, so those files can only be rate-and-term refinances.
- Lendmire is a broker. It matches your scenario to select wholesale lenders and does not lend.
Plenty of investors search for a ranked list of super jumbo lenders. No honest list exists, because the best program for your situation changes with every file. This article does something more useful. It explains how these loans work, what the second appraisal does to your numbers, and what to ask any provider before you commit.
What Does “Super Jumbo” Actually Mean?
Super jumbo has no official definition. Each lender sets its own line, which is why one program’s jumbo is another’s super jumbo.
Non-QM loans, the category DSCR loans belong to, can’t be bought by the government-sponsored mortgage agencies. Scotsman Guide notes that DSCR loans focus on property rental income rather than personal income, and that a non-QM jumbo can reach $3 million or more. Because no agency sets a limit, each program picks its own size triggers.
In Lendmire’s network, the picture looks like this. Loans run from $150,000 to $10,000,000 on the portfolio investor program. The standard DSCR program stops at $3,000,000, and the ladder carries qualified investors past that line. For the full basics, see the complete DSCR loans guide.
Qualification runs primarily on property-level rental income covering the payment, subject to lender guidelines. 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.
Why Do Two Appraisals Get Required?
Two appraisals are a lender risk policy, not a legal rule for business-purpose loans. Above $2,000,000 in loan amount, most programs we place files with want a second independent opinion of value before they put that much money behind one property.
The only federal second-appraisal mandate is the so-called flip rule inside the federal consumer-finance regulator’s higher-priced mortgage appraisal rule. That rule’s text confines it to purchases of a consumer’s principal dwelling. A business-purpose cash-out refinance on a rental falls outside that scope. That is a reading of the rule’s reach, not a statement the agency makes about DSCR loans.
The practical takeaway: the trigger is set by the program, so it moves from program to program. Always ask a provider for its threshold in writing, and ask whether it applies to loan amount or property value. In our network it is the loan amount.
Which Appraisal Wins When the Two Disagree?
The lower supported value generally governs. A lighter second report doesn’t just trim the value. It shrinks your cash-out faster, because leverage magnifies the gap.
Here is the mechanic in index units. Say the first appraisal comes in at 400 and the second at 330. That is a 17.5% drop in value. At a fixed LTV cap, the loan falls by the same percentage. Cash to you, however, is the new loan minus the payoff and closing costs, and the payoff stays put. The cash can therefore fall by far more than 17.5%. These are unitless illustrations of the leverage effect, not quotes.
Rent works the same way. Each report also produces a market rent opinion. The rent used is usually the lower of the signed lease and the appraiser’s market rent, and a vacant property uses market rent. A lease above market doesn’t boost the number.
How Does Underwriting Treat a Super Jumbo Cash-Out, Step by Step?
Underwriting follows a repeatable sequence. Knowing it lets you spot where a file can slip.
1. Size the loan band. The requested loan amount, not the purchase price or value, sets max LTV, minimum credit, and the appraisal count. Multiply value by leverage first, then read the band.
2. The lender orders both appraisals. You don’t order them. The second typically comes through a separate, independent appraisal firm.
3. Each report supplies value and market rent. The single-family rent schedule is Form 1007, and the 2-4 unit report is Form 1025. A condo unit typically pairs Form 1073 with a rent schedule. These are appraisal form names only.
4. Reconcile the reports. The lower supported value governs.
5. Pick the rent. Lower of lease and market rent, as above.
6. Apply the two-limit test. The loan is the smaller of the LTV cap times appraised value, and the amount the rent supports at the required coverage.
7. Test coverage on the new payment. The larger new payment is the test, not the old one.
8. Assemble documents. Expect the appraisals with rent schedule, leases, entity papers, insurance, a payoff statement, proof of reserves, the guarantor’s credit report, and a signed business-purpose statement. A use-of-funds letter helps.
DSCR, or debt service coverage ratio, is monthly rent divided by the full monthly housing obligation (principal, interest, taxes, insurance, and any HOA dues). A ratio of 1.00 means rent just covers it.
What Does the Size Ladder Look Like?
Leverage steps down as the loan grows. These figures assume coverage of 1.00 or higher, are ceilings through select wholesale programs, and are subject to underwriting.
| Loan band | 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% on review | 60% on review | — |
| $6M–$10M | 60% on review | 60% on review | — |
The table shows leverage only. Credit scores work like this: the top cash-out cell needs roughly 660 or better in the lowest band, about 700 from $1,000,000 to $1,500,000, and about 720 from $1,500,000 to $3,000,000. Those are what each band’s top leverage needs, not the program floor. The overall floor is 660 on loans to $3,000,000 and 700 above $3,000,000. A lower score takes a lower leverage cell inside the same band. Above $3,000,000 the file also needs 0x30x24 mortgage history, 48-month event seasoning, a citizen or permanent resident borrower, and no rural property. Acreage tops out at ten acres on a non-rural property.
The cash-out figures in the table are ceilings for standard rentals, and short-term rental collateral is treated in the edge-case section below. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Cash-out has its own twist. Proceeds are unlimited at or below 60% LTV, and the $1,500,000 proceeds cap applies only to the bands that allow more than 60%, meaning loans up to $1,500,000. Credit of 680 and below is not eligible for cash-out on loans above $1,500,000. Reserves run six months of PITIA on the subject property (twelve for first-time investors), and cash-out proceeds can’t satisfy them. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
How Do You Judge Providers When Two Appraisals Apply?
Judge by criteria, not rankings. No neutral source ranks DSCR lenders on this question, and a list would age the moment a program changes. A broker that shops several wholesale lenders can compare these items side by side.
| Question to ask | Why it matters |
|---|---|
| What loan amount triggers two appraisals? | Staying under the line changes the path |
| Which value governs? | Lower value cuts proceeds |
| What is the cash-out ceiling in my band? | Leverage steps down with size |
| Do reserves exclude cash-out proceeds? | Affects cash you must hold back |
| Can a low second report be reviewed? | Some files allow desk or field review |
| Does the program allow my vesting? | Entity vesting is welcome, but layered entities are not |
Lendmire works with a network of wholesale lenders and does not lend itself. The lenders that write super jumbo cash-out depend on your property type, credit profile, leverage need, and documentation. The match is the job.
What If the Second Appraisal Comes In Low?
You have options, and each has a tradeoff.
| Option | Tradeoff |
|---|---|
| Accept the lower value | Smaller loan, less cash out |
| Request a desk or field review | A desk review checks the first report on paper; a field review sends someone to the property. Outcome isn’t assured |
| Restructure to rate-and-term | Higher leverage in some bands, but no cash to you |
| Borrow less to stay under the trigger | Avoids the second report; sacrifices proceeds |
| Stage the debt | Smaller loan now, more later; costs repeat |
A low rent opinion can sink a file even when value holds. Coverage between 0.75 and 0.99 is a real path through select programs, with LTV and terms adjusting, subject to underwriting.
Where Does the General Rule Break?
Several edge cases change the picture.
Above $3,000,000. No cash-out exists. The file becomes a payoff-only refinance, so don’t plan around cash.
Short-term rentals. Form 1007 documents monthly rent, not nightly income. In our network, short-term rental files need 1.00 or higher coverage, run to $2,000,000, and count twelve months of operating history on a refinance at 80% of gross. Cash-out on these files follows the same loan-band ceilings as the table above, so above $1,500,000 it is capped at 60% LTV, subject to underwriting. Investors need twelve months owning income property in the last thirty-six. 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. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Condos and penthouses with thin comps. Project warrantability is screened first. Loan size, not warrantability, triggers the second appraisal. Non-warrantable condos run to 75% and $1,500,000.
Second liens. Combined coverage can fail even if the first loan passes alone.
No-ratio files. Through select wholesale programs, a handful of lenders in the network take no-ratio files to $2,000,000, with a seven-year clean housing history and 0x30x24, subject to underwriting. Files with coverage from 0.75 to 0.99 are a separate path through select programs to $2,000,000, where LTV and terms adjust, subject to underwriting.
Interest-only is a useful lever. A 120-month interest-only period on 30- and 40-year terms runs to 75% maximum, with coverage of 0.75 or better qualified on interest, taxes, and insurance, subject to underwriting.
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 Does the Decision Look Like in Practice?
Picture an investor with a luxury fourplex who wants cash for the next acquisition. The loan they want sits at $2,400,000. That crosses $2,000,000, so two appraisals apply, and the band caps cash-out at 60% LTV. If both reports come in close, the plan holds. If the second is light, cash drops sharply. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Run the sequence before applying. Compute value times leverage to find your band. Decide whether trimming the request below $2,000,000 is worth the lost proceeds. Check reserves from funds other than the cash-out. Then ask for the provider’s threshold in writing.
Maximum cash-out also tightens cash flow. DSCR compares rent to the payment, so clearing 1.00 doesn’t mean the property cash flows. Size the loan for the life of the hold, not only for closing. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Non-QM is mainstream, too. Scotsman Guide reports it is about 5% of all mortgages.
Key Terms Defined
Super jumbo: A loan larger than a lender’s standard jumbo limit, with no official definition.
DSCR: Debt service coverage ratio, rent divided by the full monthly obligation.
Cash-out refinance: A new, larger loan that pays off the old one and returns the difference.
LTV: Loan-to-value, the loan amount as a percentage of appraised value.
Reserves: Liquid funds held after closing, counted in months of payments.
Desk review: A paper check of an appraisal. A field review sends someone to the property.
Pre-Application Checklist
- Compute your target loan amount and find its band.
- Gather leases, entity papers, insurance, and the payoff statement.
- Confirm six months of reserves outside cash-out proceeds.
- Know your credit tier for the leverage you want.
- Ask for the two-appraisal threshold in writing.
- Decide in advance what you’ll do if the second value is low.
Frequently Asked Questions
Are two appraisals required by law on a super jumbo DSCR cash-out?
No. For a business-purpose refinance, the second appraisal is a lender or investor policy. In Lendmire’s network it applies above $2,000,000 in loan amount, subject to underwriting.
Which value does the lender use if the appraisals differ?
Generally the lower supported value. A lighter second report also reduces proceeds, because the payoff doesn’t shrink with it.
Can I take cash out on a loan above $3,000,000?
No. Cash-out isn’t available above $3,000,000 on the programs in our network.
Who orders the second appraisal?
The lender orders both, not you.
Can the cash-out count toward my reserves?
No. Reserves are six months on the subject property, twelve for first-time investors, and must come from other funds.
Next Step
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 arranges business-purpose financing in 41 markets, including Washington, D.C., through select lenders in its wholesale network. Nothing here is a commitment to lend.
For a related situation, see Lendmire’s piece Top Super Jumbo DSCR Cash-Out Refinance Providers When the Hard Money Note Is Coming Due.
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.
For the mechanics of pulling equity out of a rental property, see Lendmire’s guide to cash-out refinance on an investment property.
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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. Scotsman Guide: Non-QM Mortgages
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: Top Super Jumbo DSCR Cash-Out Refinance Providers Without Counting Personal Income · Top Super Jumbo DSCR Cash-Out Refinance Providers for a Foreign National Investor · Banks That Offer a Super Jumbo DSCR Cash-Out Refinance When Two Appraisals Are Required
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.