Jumbo & Non-QM Mortgage Down Payments Explained

Luxury and non-traditional buyers often need creative financing that suits their needs. Jumbo and non-QM loan programs let affluent, self-employed, and “outside-the-box” borrowers win home purchases with less conventional income documentation. Many believe that the tradeoff means a bigger down payment, and while most multi million dollar loans won't let you put 3% down, they also don't require 30% down. In this guide we break down each program’s structure, required down payment, and ideal borrower – with local examples from California, Texas, Virginia, Colorado, Illinois, New Jersey, and Connecticut.

Jumbo Mortgage Basics (5%–20% Down)

Jumbo loans are mortgages that exceed the conforming loan limit, which means they usually come with stricter guidelines than standard conventional loans. Because the loan amounts are larger, lenders pay close attention to down payment, credit score, reserves, debt-to-income ratio, property type, and overall financial strength.

The good news is that jumbo loans do not always require 20% down. Many well-qualified borrowers can buy a primary residence with 10% down, and in select cases, even 5% down may be available depending on the loan size, credit profile, property type, and lender. That said, 20% down is still the most common benchmark for stronger pricing, cleaner approvals, and more program flexibility.

For primary residences, jumbo borrowers may be able to put as little as 10% down, especially with strong credit, stable income, and healthy reserves. Some programs may allow lower down payments, but those options are usually more selective and may come with higher rates, stricter underwriting, or lower maximum loan amounts.

For second homes, lenders usually expect more equity. A 15% to 20% down payment is common, especially in expensive markets, resort areas, or condo-heavy locations. Even when a second home is used personally, lenders may view it as a higher-risk property than a primary residence.

For investment properties, jumbo lenders typically require at least 20% down, and many programs require 25% to 30% down depending on the property, rental income, borrower profile, and loan amount. The more complex the property or income structure, the more equity the lender may want to see.

Credit also matters, but jumbo loans do not always require a perfect credit score. Many jumbo borrowers have scores above 700, but a lower score may still work if the borrower has more equity, strong reserves, low debt, or significant compensating factors. In jumbo lending, the full financial picture matters more than one single number.

For example, a Austin buyer may want a $1.5M jumbo loan with 10% down because they plan to keep cash available for renovations after closing. In another scenario, a Houston buyer may choose to put 20% down because they want stronger pricing, a cleaner approval, and more lender options. Neither structure is automatically better. The right down payment depends on the borrower’s goals, cash position, and loan strategy.

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Asset Depletion Mortgages (15%–20% Down)

For retirees or high-net-worth individuals living off investments, asset-depletion loans let your cash/stock pile count as income. Lenders “deplete” (divide) your liquid assets over a fixed term to create a faux monthly income, instead of using pay stubs.

• Down payment: Programs typically cap out at 80–85% LTV, meaning 15–20% down. In practice many asset-depletion lenders expect at least 15% down for a primary or second home, and ~20-25% for an investment.

• Who it’s for: Retirees or executives with large savings but little salary. Think a tech exec cashing out retirement funds to buy a vacation home, or a former CEO who earned mostly stock.

• How it works: The lender takes your qualifying assets (bank accounts, stocks, retirement funds) minus the down payment, divides by a set period, and uses that as monthly income.

• Properties: Available for primary homes, second homes, and (in many cases) investment properties.

• State examples: In affluent California markets (LA, Bay Area) or Virginia’s suburbs, borrowers often have big stock portfolios and can use asset-depletion loans to qualify. In Connecticut or New Jersey, retirees with large 401(k)s use this to buy a dream house on the Connecticut coast or a trophy home in Princeton without selling assets. A common scenario: a 62-year-old Texas retiree with $5.6M in accounts qualified for a $3.2M Westlake Hills (Austin) home purely on asset-depletion income.

Bank-Statement Loans (15%–20% Down)

Self-employed or 1099 earners often turn to bank statement loans or self employed mortgages, which qualify you based on cash flow in your accounts. Lenders average 12–24 months of personal or business bank deposits, apply an expense factor, and treat the rest as income.

• Down payment: Generally 15–20%. Many programs advertise 10% down for top-credit borrowers, but in practice 15–20% is more common. For example, a program might say “10% minimum down” but charge much higher pricing than even a 15% down loan.

• Who it’s for: Entrepreneurs, consultants, freelancers – anyone with strong deposits but low reported income (due to write-offs or new business). In Illinois, a Chicago-based web designer or in Texas a Houston oil-entrepreneur with fluctuating revenue could use their last 2 years of deposits to qualify.

• Loan amounts: Commonly cap around $1–2M. Bank-statement loans are offered for primary and second homes, and often investments too (with 20–30% down).

• Example: A freelance graphic designer moving from Chicago to Houston. With $20K average deposits but low taxable AGI, she qualified for a $1.2M home loan using 12 months of bank statements and no tax returns.

RSU-Based Mortgages (10% Down)

Tech employees who get paid in Restricted Stock Units (RSUs) can sometimes use those grants as qualifying income. Specialized mortgage programs will recognize a steady, vesting RSU schedule on par with salary.

• Down payment: Typically 10% down (90% LTV). In other words, if you’ve got $100K in annual RSU vests at Google or Meta, you may buy a home with just $20K down.

• Who it’s for: Silicon Valley, employees of public companies like Tesla, SFii or Amazon who receive compensation in the form of RSUs or any high-comp firm with equity pay. For example, a software engineer in San Jose or Stamford could use RSUs instead of salary to qualify.

• Qualifying: Lenders typically require vested (not pending) RSUs on a 2-year history or an approved vesting schedule. They convert the average annual vesting into income – similar to how bonus income is treated.

• Example: Consider a tech manager in California or New Jersey who gets $50K/year in RSUs working for Affirm, a buy now pay later company. A lender might allow her to count that as income and extend a jumbo loan with only 10% down.

Crypto-Backed Mortgages (20% Down)

Our crypto mortgages let borrowers leverage their Bitcoin, Ether, or other digital assets as an asset that's no different than a share of Apple, categorizing it as an asset depletion loan. Other lenders offer crytpo collateral mortgages, but pledging your Bitcoin as collateral is a much more restrictive option. As Bitcoin becomes more mainstream, more lenders will start adopting this model. LendFriend rolled out this product in July and has been extremely happy to be able to service this niche of legitimate and high-net-worht crypto investors and Bitcoin maxis.

• Down payment: 20% is typical. Some programs even fund 100% of a mortgage against crypto collateral, but those are rare and usually interest-only structures.

• Who it’s for: High-net-worth crypto investors or even W2 employees who were wise enough to see the potential of Bitcoin and invested early.. Think a blockchain startup founder in Texas (Austin’s crypto scene), an accountant in California who bought Bitcoin in 2016, or a New Jersey day trader with a crypto portfolio. These borrowers can avoid triggering capital gains taxes by using crypto as security.

• Key point: These loans carry rates slightly higher than a typical asset depletion loan. If you choose a collateral based loan, your rate would be much higher. Either way, because this product is new it carries stricter LTV limits to protect against crypto volatility. But the big win is liquidity: you don’t sell your coins, yet you can still buy the $1.5M beach house in Florida or a mansion in Greenwich, CT with crypto mortgages on the side.

• Example: A New Jersey resident with $5M of bitcoin wants to leverage his BTC to buy a house. He makes a 20% down payment in cash, then qualifies for the mortgage with his $5M in crypto as collateral using a crypto mortgage

Buy-Before-You-Sell (Bridge) Loans

In pricey areas, many buyers can’t wait to line up buyers for their existing home. A “Buy Before You Sell” (bridging) loan lets you use your departing house’s equity to fund the new purchase. The typical structure:

• Bridge on old home: Lend up to 75% LTV (i.e. 25% equity) on your existing house. The bridge lender usually goes 2nd position behind your first mortgage. For example, if your current home is $1M with $500K mortgage, the lender might give $250K (25% of $1M) as a bridge loan. You pay no interest on this short-term bridge; instead, when your old house sells, the entire bridge balance plus a fee is repaid.

• Down on new home: You still need ~20% down on the new purchase in most cases. In practice you’ll have combined equity sources: part from savings, part from the bridge.

• Who it’s for: Move-up buyers in New Jersey/New York, California, Colorado (hot Denver market), etc. For example, a Fairfield County, CT, family can lock in a Montclair, NJ home with a bridge loan on their Norwalk house. Or a Seattle couple upsizes to a Bellevue mansion before selling their condo, using the condo’s equity as a bridge.

• Example: A Virginia homeowner buys a $800K new home in Arlington before selling his Alexandria condo. He does 20% down ($160K) on the new home from savings, and takes a bridge loan on the condo: up to 75% of its value. If the condo is worth $400K with $200K first mortgage, he could draw $100K (25% of $400K) as bridge.

Gift Funds Can Be Used Toward a Down Payment

For conventional loans, eligible down payment gifts can be used toward the down payment and closing costs. On many one-unit primary-residence purchases, Fannie Mae allows the entire required down payment to come from an eligible gift without requiring the borrower to contribute their own funds.

Gift funds can also be used with many jumbo loans, although individual lenders may impose additional requirements for borrower contributions and reserves. For a high-income borrower with strong assets, a large family gift can make a lower-down-payment jumbo structure even more attractive by preserving more of the borrower's own liquidity.

Employer Relocation Assistance Can Help Fund the Purchase

Borrowers relocating for work may have another source of money available through their employer. Fannie Mae allows qualifying assistance from an established employer program to be used toward the down payment and closing costs on a primary residence.

That can include relocation grants and other qualifying employer benefits. Properly documented employer relocation funds can become part of the down payment, allowing a borrower to buy the new home while keeping more of their personal savings and investments intact.

Jumbo lenders that permit employer assistance may have their own documentation, contribution and reserve requirements, making lender selection particularly important on larger purchases.

State-by-State Snapshot

To ground these rules, here are quick examples by state:

• California (CA): In higher-cost California markets, buyers frequently use jumbo loans in California alongside RSU income, asset depletion and other strategies. A San Francisco engineer with significant annual RSU compensation might use a 10% down jumbo loan to buy in Silicon Valley. Retiring executives in La Jolla or Napa with several million dollars in savings may use asset depletion financing to preserve liquidity rather than paying cash. Crypto investors can also use Bitcoin and Ethereum holdings to help qualify for a mortgage without liquidating their positions.
• Texas (TX): Texas homebuyers have access to conventional, jumbo and Non-QM options across Austin, Dallas, Houston and the rest of the state. A self-employed Austin founder may qualify using 12 months of bank statements with 15% down, while a Dallas retiree with substantial retirement assets may use asset depletion. Jumbo buyers can often purchase with 10% down, although 20% may produce stronger pricing depending on the lender and loan amount.
• Virginia (VA): In expensive Northern Virginia markets such as McLean, Great Falls and Arlington, Virginia jumbo loans are common. High-income professionals may qualify conventionally using salary, bonuses or equity compensation, while self-employed consultants and high-net-worth borrowers can use bank statement or asset depletion programs when appropriate. Eligible veterans also have access to VA and VA jumbo financing with little or no down payment.
• Illinois (IL): Illinois homebuyers in Chicago, the North Shore and higher-priced suburbs have access to conventional jumbo, bank statement and asset-based financing. Attorneys, physicians and business owners may use bank statement mortgages, while executives with equity compensation can qualify using RSU income. Many jumbo lenders offer 10% down options for strong borrowers purchasing in areas such as Winnetka, Lake Forest or Hinsdale.
• New Jersey (NJ): New Jersey homebuyers frequently need financing strategies that account for high property values, substantial existing home equity and complex compensation. A Hoboken homeowner moving to Montclair may use a Buy Before You Sell strategy to purchase before selling the departing residence. High-net-worth buyers in Short Hills, Bergen County and along the Jersey Shore may use jumbo mortgages, asset depletion or RSU income depending on how their finances are structured.
• Connecticut (CT): Connecticut homebuyers in Greenwich, Westport, Darien and New Canaan regularly use jumbo mortgages because of the state's higher home values. A Greenwich business owner may use a bank statement loan in Connecticut, while a Stamford executive may qualify using salary, bonuses or RSU income. Buyers with substantial investment portfolios can use asset depletion, and Buy Before You Sell strategies can help homeowners access equity or purchase before the existing Connecticut home is sold.

Who Benefits?

• High-net-worth individuals: Luxury borrowers with 6+ figure incomes or big portfolios avoid selling assets or messing with complicated tax returns. Products like asset depletion and crypto loans let wealth buy homes without liquidation.

• Self-employed professionals: Consultants, freelancers and business owners don’t fit “cookie-cutter” lending. Bank-statement mortgages and 1099 loans let them qualify on real cash flow; non-QM jumbos (with 10–20% down) give them access to expensive properties despite no W-2s.

• Tech and crypto workers: People paid in stock or crypto often prefer keeping those assets. RSU and crypto-backed loans let techies in California or New York leverage their equity compensation or digital coins for home purchases, usually requiring a 10–20% cushion.

• Move-up buyers: Anyone needing to buy before selling can use a buy-before-you-sell bridge loan. These are especially handy in fast markets (Northern NJ, CA, D.C. suburbs) where selling a house can take longer than you’d like.

Program Structures (Quick List)

• Jumbo Loan: 10%–20% down (primary), 20%+ (second/investment). Higher credit and reserves required. Example: San Diego attorney buys a $2M house with 15% down.

• Asset Depletion Loan: 15% down (owner-occupied), 20% down (investment). Qualify on assets (stocks, 401k) instead of income. Example: Silicon Valley retiree uses $4M in mutual funds to get a jumbo on a mountain home.

• Bank-Statement Loan: 15%–20% down (10% if FICO ≥680). Qualify on 12–24 months of deposits. Example: Chicago freelance designer qualifies with 12 months of $20K deposits (15% down) for a $1.2M home.

• RSU Mortgage: ~10% down. Lenders convert vesting stock into qualifying income. Example: Mountain View engineer with $80K/yr in RSUs uses 10% down RSU loan to buy a $1.2M home.

• Crypto-Backed Mortgage: ~20% down. Use BTC/ETH as collateral. Example: Austin investor pledges $2M in Bitcoin to secure an 80% LTV loan on a $2.5M home.

• Buy-Before-Sell Bridge: 75% LTV on existing home (2nd lien), plus ~20% down on new home purchase. Example: Northern Virginia buyer puts 20% down ($200K) on a $1M new house and takes a 75% LTV bridge on his current $400K condo ($100K bridge).

Why Working With a Mortgage Broker Matters for Your Down Payment

The amount you put down is only half the equation. The other half is finding a lender that prices that exact down payment level competitively for the loan product you are using.

One jumbo lender may be strongest at 20% down while another is far more competitive at 10%. Bank statement, asset depletion and other Non-QM programs can vary even more, with different lenders offering different loan-to-value limits, reserve requirements and pricing.

A mortgage broker can compare those options and determine whether 10%, 15% or 20% down gives you the strongest combination of rate, payment and liquidity without forcing you into one lender's guidelines.

Why Work With LendFriend Mortgage on Your Down Payment Strategy

At LendFriend Mortgage, we compare conventional, jumbo and Non-QM lenders to find the strongest structure for the amount you actually want to put down.

That matters because the best lender at 20% down may not be the best lender at 10% down. One lender may offer better pricing with a larger down payment, while another may allow you to preserve significantly more cash without materially changing the rate or monthly payment.

We look at the entire transaction: loan amount, credit, reserves, income, property type and how much liquidity you want to keep after closing. Then we compare lenders to determine whether putting 5%, 10%, 15% or 20% down gives you the strongest overall result.

The goal is not simply to minimize the down payment or maximize it. It is to make sure every dollar you put into the house is actually improving the mortgage enough to justify tying up that cash.

The Bottom Line on Down Payments and Jumbo and Non-QM loan

Jumbo and non-QM loans offer luxury and non-traditional borrowers flexibility, so long as you can hit the minimum down payment required. The amount you need to put down depends on the loan amount, property type, credit profile and lender, which is why mortgage down payment guidelines can vary considerably from one borrower to another.

By accepting alternative income documentation or asset collateral, lenders enable high-asset, self-employed, and tech-savvy borrowers to purchase homes they otherwise couldn’t. The catch is that most of these programs insist on sizeable equity from the borrower – typically 10–20% or more.

In practice, expect ~20% down on most non-traditional loans unless you have a stellar profile. A bare-minimum 10% down often targets very strong applicants or owner-occupied scenarios. Second homes and investment properties usually require 20%–25%.

If you’re in California, Texas, Virginia, Colorado, Illinois, New Jersey, or Connecticut, these programs are readily available. A local mortgage broker can match you to the right product. Whether you have RSUs in Palo Alto or crypto in Austin, or you’re a small-business owner in Houston or Chicago, these loans exist to help you achieve homeownership.