The Quick Read: It is a very large mortgage on a home you will use part of the year, where the lender reviews your file on 12 or 24 months of bank deposits instead of traditional personal-income documentation. Three separate ideas stack together: the loan is big, the income is proven by deposits, and the house is a second home rather than a rental. Each one changes the underwriting, and the combination is why these files get reviewed one at a time.
- Size: Through select wholesale programs, loans run from $300,000 to $30,000,000, and everything above $4,000,000 is reviewed case by case before submission.
- Income: Eligible deposits, minus an expense ratio, divided by the months in the window. That is your qualifying income.
- Leverage: On a second home, typical ceilings run about five points below a primary residence at most sizes under $3,000,000. The gap widens to ten points between $3,000,000 and $4,000,000, and ceilings step down as the balance climbs.
- Occupancy: A second home is one unit that you actually use. A property meant to pay for itself on rent belongs on a different loan.
- Reserves: They often bind before income does, and cash-out proceeds cannot satisfy them on the largest files.
Every figure here is a typical ceiling through select wholesale programs, subject to full underwriting, and none of it is a commitment to lend. Programs change.
What Is the Loan, Layer by Layer?
The loan is three labels on one file: a size label, an income-documentation label, and an occupancy label. Each answers a different underwriting question. Size sets how much cushion the lender wants. Documentation decides how your income is measured. Occupancy decides which rule book the property falls under.
| Label | What it describes | What it changes |
|---|---|---|
| Super jumbo | Loan size | Leverage, reserves, review depth |
| Bank statement | How income is proven | Qualifying income math |
| Second home | How the property is used | Leverage, property type, rent rules |
This product suits founders, physicians, attorneys, entertainers, athletes, and investors whose traditional personal-income documentation understates what actually comes in. Write-offs and depreciation shrink taxable income. Deposits can show the real picture. A W-2 borrower with a clean return usually has no reason to take this path.
Why “Super Jumbo” Is a Lender Label, Not an Official Tier
A jumbo loan is any mortgage above the conforming limit, which is the ceiling for loans Fannie Mae and Freddie Mac can buy. The current baseline for a one-unit property is $832,750, and high-cost areas reach $1,249,125, according to Orrick’s summary of the FHFA announcement. Nothing above that line has a regulatory name.
“Super jumbo” is simply where each lender decides the file needs a heavier look. Across the wholesale network, the practical lines show up at $3,000,000 on a second home and $3,500,000 on a primary residence. Above those sizes, the overlays tighten:
- A 700 credit score floor.
- A clean housing payment history over the prior 24 months.
- 48 months of seasoning after any credit event.
- U.S. citizens and permanent residents only.
- No non-occupant co-borrowers.
- No rural property, and ten acres at most.
- Cash-out proceeds that cannot count toward reserves. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
At the very top, a bank portfolio program carries twelve-month-statement files up to $30,000,000 on its own ladder. Its ladder begins above $4,000,000 and overlaps the portfolio non-QM program, which carries files to $6,000,000. Above $6,000,000 the bank program stands alone. Those files are always reviewed case by case before they are submitted.
How Do Deposits Become Qualifying Income?
Underwriters take your eligible deposits, subtract an expense ratio, and divide by the number of months in the window. The result is a monthly income figure. They then test it against your debts, credit, and reserves.
Here is the sequence, step by step:
1. Pick the window. Most programs accept 12 or 24 consecutive months. The bank portfolio program uses 12. Statements must be consecutive. A transaction history never substitutes for statements.
2. Choose the account type. Personal or business statements both work. Business statements require at least 25% ownership.
3. Scrub the deposits. Underwriters strip out refunds, loan proceeds, transfers between your own accounts, and anything that is not income.
4. Apply the expense ratio. This is the share of business deposits assumed to be eaten by costs.
5. Prorate for ownership if you own only part of the business.
6. Divide by the months in the window.
7. Test the file. Debt-to-income can run up to 50%. Credit and reserves get reviewed beside it.
The Scotsman Guide describes the same basic pattern for self-employed borrowers: 12 to 24 months of statements, an expense factor, and sometimes a profit-and-loss statement or a third-party expense statement instead.
The expense ratio is not a number you choose. Across most programs in the network, fixed ratios apply by business type:
| Business profile | Typical expense ratio |
|---|---|
| Service business, no employees | 20% |
| Service business, 1-5 employees | 40% |
| 6+ employees, or any product business | 50% |
| Accountant-provided ratio | As documented |
A profit-and-loss method also exists, with qualifying income capped at 80%. An accountant’s letter can sometimes support a lower ratio than the fixed default. That is one reason a good CPA matters on these files.
Run it as a picture, not a dollar figure. Say you own a business with eight employees and twelve months of clean business deposits. The 50% ratio means half of the average monthly deposit counts as income. If that half comfortably covers your existing debts plus the new second-home obligation inside a 50% debt-to-income test, the income side works. If not, a 24-month window, a different account mix, or an asset path may change the answer.
Personal statements work differently. Transfers from your own business into your personal account count at 100%, because the business expenses were already paid before the money moved.
Personal or Business Statements?
Personal statements are simpler when your business pays you steadily through transfers. Business statements fit when income flows through the company and you own at least 25% of it. Many borrowers have both, and the choice can move qualifying income noticeably.
Watch for the common snags:
- Commingled accounts. Personal spending mixed into a business account muddies the deposit review.
- Unexplained large deposits. Expect to document the source.
- Transfers counted as income. Moves between your own accounts do not count.
- Seasonal revenue. A 24-month window can smooth lumpy deposits. A 12-month window can look better if your business grew recently.
What Counts as a Second Home, and Why Does It Matter?
A second home is a single-unit property you will occupy for part of the year, that you control, and that is not run as a rental. Lenders classify by actual use, not by what the file is labeled. Second homes are one unit only. Two-to-four unit properties do not qualify.
That classification drives leverage. Through select wholesale programs, subject to full underwriting, typical second-home ceilings on a purchase look like this:
| Loan size | Second-home purchase LTV | Credit score |
|---|---|---|
| $300K to $1M | 85% | 700+ |
| $1M to $1.5M | 80% | 680+ |
| $1.5M to $2.5M | 80% | 700 to 720+ |
| $2.5M to $3M | 75% | 720+ |
| $3M to $4M | 65% | 760+ |
| $4M to $5M | 65%, case by case | 760+ |
Compare that to a primary residence on a purchase: 90% to $1,000,000, 85% to $2,000,000, 80% to $3,000,000, and 75% at the top credit tier to $4,000,000. Above $4,000,000 on a primary residence, the bank program’s ladder takes over at 65% to $5,000,000, 60% to $10,000,000, and 55% to $30,000,000, all reviewed case by case. Second homes sit about five points lower at most sizes under $3,000,000, though the two briefly match between $2,000,000 and $2,500,000. From $3,000,000 to $4,000,000 the gap widens to ten points.
Honesty matters here. A buyer who plans to rent the house most of the year and calls it a second home is describing an investment property. The occupancy declaration is certified and verified. Misstating it is not a pricing trick. It is misrepresentation on a mortgage file, and experienced investors treat it that way.
What Does Underwriting Check Beyond Income?
Reserves, credit, and property type get as much attention as deposits at this size. Many borrowers expect income to be the hurdle. Often it is not.
Reserves are liquid funds left after closing. Typical requirements across the network run 3 months of housing payments to $500,000, 6 months to $1,500,000, and 9 months above that. Each additional financed property adds 2 months, up to a 12-month maximum. First-time investors are typically asked for 12.
Credit floors run 660 on the portfolio non-QM program and 680 on the bank program. Above the super-jumbo line, expect 700.
Cash-out on a second home is allowed but tighter. On the portfolio program, proceeds are unlimited at or below 60% LTV and capped at $1,500,000 cash in hand above 60%. On a second-home cash-out, ceilings run 75% at the smaller sizes and fall to 55% at $3,000,000 to $5,000,000, reviewed case by case above $4,000,000. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Interest-only structures exist. On the portfolio program, interest-only runs to 85% LTV with a 700 credit floor, using a 40-year term with a 10-year interest-only period. On the bank program, interest-only runs at 60% or the band’s ceiling, whichever is lower. The interest-only ceiling applies to purchase and rate-and-term files, and it does not raise a cash-out ceiling. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Property type also matters. Warrantable condos run to 85% and non-warrantable condos to 80% on primary residences, with second homes lower. Condotels are limited, and rural property is restricted and never available above $3,000,000.
Who Is Reviewing the Income Paperwork?
Non-QM does not mean no paperwork. It means a different kind of paperwork. The CFPB’s compliance guide says lenders generally cannot rely on a borrower’s say-so about income. They need reasonably reliable third-party records, and bank statements are on that list.
Trade press makes a related point. Non-QM loans often look more like prime jumbo loans than like subprime loans. They are simply documented another way. These loans sit outside the standards for agency purchase, so the lender evaluates each file against its own guidelines and overlays.
Across the wholesale network, the pattern on large second-home files is consistent. Strong deposits do not rescue thin reserves, and a clean file with modest leverage moves further than an aggressive file with a story attached. Getting a CPA letter and a reserve plan in order before applying prevents most surprises.
Other Ways to Qualify (When Deposits Are Not the Best Fit)
Deposits are one path of several. The right one depends on how you earn and how you plan to use the house.
| Path | How income is measured | Best fit |
|---|---|---|
| Bank statements | Deposits after expense ratio | Self-employed, heavy write-offs |
| Asset allowance | Liquid assets divided by 36, 60, or 84 months | Large liquid balances |
| Assets only | Liquidity vs. loan plus costs | Wealth but irregular income |
| DSCR | The property’s rent covers its payment | Properties that will be rented |
Asset allowance divides liquid assets by 36 months when it supplements income and DTI is at or below 60%, by 60 months when DTI is above 60%, and by 84 months when assets stand alone or the loan exceeds $3,500,000. It applies to primary and second homes, up to 80% LTV. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Assets-only needs no DTI. U.S. liquid assets must equal the loan amount plus closing costs plus 60 months of any net loss on other residential property. Retirement accounts count at 70%, or 80% at age 59.5 and up. Business funds, gifts, most trusts, unvested stock, and cryptocurrency never count. Assets used as income cannot also serve as reserves.
DSCR is the fork to understand. A debt service coverage ratio loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. If the house is meant to carry itself on rent, read Lendmire’s complete DSCR loans guide. Some programs in the network review coverage below 1.00, but leverage and terms adjust when they do. DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose loans, they are reviewed differently from a standard owner-occupied mortgage.
The same house can be two different loans. A bank statement second-home loan stacks on your personal debt-to-income, so each added mortgage reduces your room. A DSCR loan stands on each property’s rent and leaves your personal ratio alone. Occupancy is the fork. A true personal-use home fits the first. A property built to produce rent fits the second.
Where the General Rule Breaks
The usual pattern holds most of the time, but several named edge cases bend it.
- A business under 24 months old. A 12-month window may still work, and underwriters weigh assets and credit alongside the shorter history.
- Seasoning on a credit event. Above the super-jumbo line, 48 months of seasoning applies. Below it, programs vary.
- Texas home-equity loans. A Texas 50(a)(6) loan takes a 5-point LTV reduction and stops at $3,000,000 on the portfolio program.
- A second home that also rents. Occasional rental does not always flip the classification, but a property bought mainly for rent may have to be financed as an investment property. Investment-property leverage ladders run at or near second-home levels at many sizes, but with different treatment on rent and eligibility.
- A balance above $4,000,000. Everything is reviewed case by case before submission. Any leverage figure at that size is a starting point, not a promise.
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.
What Does the Decision Look Like in Practice?
Work through four questions in order.
1. How will you use the house? If you will live in it part of the year and it is not a rental, a second-home loan fits. If it must earn rent to pay for itself, look at DSCR instead.
2. Does traditional personal-income documentation understate your income? If yes, deposits or assets may qualify you better than returns.
3. What size and leverage do you need? Check the ladder. Past $3,000,000 on a second home, leverage drops sharply and the overlays tighten.
4. Can your reserves carry it? Count liquid funds after the down payment and closing costs. If cash-out proceeds are part of the plan, remember they cannot satisfy reserves on the largest files.
Key Terms Defined
Non-QM: A mortgage that falls outside the standard rules for agency purchase and verifies repayment ability another way, such as bank statements.
Expense ratio: The share of business deposits the lender assumes goes to costs before counting what is left as income.
Reserves: Liquid funds you hold after closing, measured in months of the housing payment.
Seasoning: The waiting period a lender requires after a credit event or between events.
Overlay: An extra requirement a lender adds on top of its base guidelines, usually at larger loan sizes.
Occupancy: How you will use the property: primary residence, second home, or investment.
DSCR: Debt service coverage ratio, which compares a rental property’s income to its monthly debt obligation.
Frequently Asked Questions
Can I use a bank statement loan for a vacation home?
Yes, if the home meets the second-home test: one unit, used part of the year, under your control, and not run as a rental. Through select wholesale programs, second-home purchases typically top out at 85% LTV up to $1,000,000 and step down from there, subject to full underwriting.
Do I need traditional income documentation?
Not on a bank statement program. It is reviewed on documented income under the applicable program, subject to lender guidelines. You supply 12 or 24 consecutive months of personal or business statements instead of returns. Some files add a CPA letter or profit-and-loss statement to support the expense ratio.
Is super jumbo a legal category?
No. Jumbo means above the conforming limit, but nothing official defines super jumbo. In the wholesale network, the extra overlays begin around $3,000,000 on second homes and $3,500,000 on primary residences. Above $4,000,000, files are reviewed case by case.
Can I rent the home out?
Occasional rental may be fine, but a property bought mainly to produce rent is usually an investment property. That changes the leverage ladder and the rules. If rent is the plan, a DSCR loan is usually the better structure.
Do business deposits count in full?
No. Business deposits are reduced by an expense ratio, commonly 20%, 40%, or 50% depending on the business. Transfers from your own business into a personal account count at 100%, which is why the account choice matters.
Next Step
If you are financing a high-balance property on business or personal bank statements and want to see how the numbers work, Lendmire can help you compare super jumbo bank statement loan options based on your deposits, the property, credit profile, leverage, and your goals. Lendmire is a broker that shops multiple wholesale programs. It is not the lender. Its consumer mortgage business operates in 16 states: AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA, and WA. Reach the team at 828-256-2183.
A second home that fits the occupancy rules and the reserve math is the file that gets through review; the borrowers who plan reserves first usually face the fewest surprises.
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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References
1. Orrick InfoBytes, FHFA conforming limits
2. Scotsman Guide, “Rev Up the Engine for Non-QM Lending”
3. CFPB ATR/QM Small Entity Compliance Guide
4. Scotsman Guide, “Careful Underwriting Makes This a Valuable Loan”
This article is part of Lendmire’s super jumbo bank statement loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How to Get a Bank Statement Second Lien on a Second Home · How to Qualify as a Real Estate Agent for a Super Jumbo Bank Statement Loan · How Super Jumbo Bank Statement Second-Home Loan Limits Work
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.