Topeka is one of the more affordable capital cities in the country, and that shapes what a jumbo rental loan looks like here. Very few single properties in Shawnee County are worth enough, and rent for enough, to carry a $1.5 million loan. When jumbo balances do come up, they almost always involve a newer multi-unit building at the top of the local market or an investor consolidating a larger portfolio.
In short: LendingStreet offers jumbo DSCR loans from about $1.5M to $5M+ for purchase, rate-and-term and cash-out on high-value 1-8 unit rentals in Topeka and Shawnee County. They qualify on the property's rent instead of your personal income. Larger balances get more review, and maximum LTV can be lower and varies by program. In Topeka, a jumbo balance usually means a newer 7-8 unit building or several properties rather than one house.
High-end homes around Sherwood Lake and in southwest Topeka are among the most expensive in the area, but their rents rarely approach the payment on a jumbo loan. The properties that can support jumbo balances are usually:
Being direct about this saves time. If your target is a single luxury home as a rental, expect the rent to support only part of a jumbo balance and plan for a large down payment. If your target is a newer multi-unit building, the rent is much more likely to carry the loan at moderate leverage.
This example is illustrative and not a quote. An investor owns a newer eight-unit townhome building in southwest Topeka free and clear. It appraises at $2,300,000, and each three-bedroom unit with a garage leases for $1,800, or $14,400 a month. Taxes are budgeted at $3,300 a month and insurance at $650.
A 65% cash-out loan of $1,495,000 has estimated principal and interest of about $10,199 and a total payment of about $14,149, for a DSCR of about 1.02x. At 75% LTV the loan would be $1,725,000, the payment about $15,718 and the DSCR about 0.92x, below 1.0x. Moderate leverage is what makes the cash-out work, and the investor still receives about $1.5M before closing costs.
| Item | 65% LTV | 75% LTV |
|---|---|---|
| Loan amount | $1,495,000 | $1,725,000 |
| Estimated principal and interest | $10,199 | $11,768 |
| Taxes and insurance | $3,950 | $3,950 |
| Total payment | $14,149 | $15,718 |
| DSCR | About 1.02x | About 0.92x |
Residential property in Kansas, including apartment buildings, is assessed at an 11.5% assessment ratio on the county's appraised value, and the local levy applies to that. Shawnee County reappraises every year, so a newer, high-rent building may see its value updated regularly. On a property like the example, taxes alone can exceed $3,000 a month.
Use the current appraised value and actual bill when you underwrite, and expect increases as rents rise.
If a building was recently completed, ask whether any tax abatement or incentive applies and when it ends. We budget on the full bill so the loan still works after any reduction expires.
Appeals can lower a bill that seems out of line with similar buildings, but plan the loan on the current figure rather than a hoped-for reduction.
Jumbo loans get a closer look at the appraisal, your reserves and your experience with similar properties. In a smaller market like Topeka, the appraiser may need to look farther afield for comparable sales of newer multi-unit buildings, which makes clean rent rolls and operating statements even more important.
Reserves of several months of the full payment, professional management and well-documented leases all strengthen a jumbo file.
We also compare the building's rents with nearby properties. Rents well above the local market need support from lease history and comparable rentals, because the loan depends on those rents continuing.
Wind and hail deductibles on large Kansas policies are often a percentage of the insured value. On a $2M building, a 2% deductible is $40,000 out of pocket after a storm. Read the policy terms, consider impact-resistant roofing and keep reserves that reflect that exposure. Properties near the Kansas River or Soldier Creek should be checked against flood maps.
Some owners of large Kansas properties carry a separate policy or higher coverage limits for wind and hail. Whatever you choose, the lender will review the policy, so make sure the deductible and coverage meet the loan's requirements before closing.
Jumbo DSCR loans are available for all three purposes. A purchase uses the lower of price or appraised value. A rate-and-term refinance can replace a construction loan on a newly finished building. A cash-out refinance, like the example, frees equity, though maximum leverage on cash-out is usually lower and seasoning varies by program.
Seasoning matters on cash-out. If the building was bought or finished recently, some programs lend on cost plus documented improvements rather than the new appraised value until the seasoning period passes.
If your building needs a loan under about $1.5M, our standard 5-8 unit DSCR program covers it. If you own several Topeka rentals worth $1.5M or more together, a blanket portfolio loan can put five or more under one closing and one payment, with release provisions when you sell one. A jumbo loan fits when a single high-value property carries the whole balance.
Investors with properties in both Topeka and the Kansas City area can sometimes combine them on one blanket loan.
Send the address, value or purchase price, rent roll and any existing loan details. Call (877) 298-1001 or use the form below to get a quote.
If you are not sure whether your property or portfolio fits a jumbo loan, a blanket loan or our 5-8 unit program, send us the details and we will tell you which structure fits best.
Loan amounts from about $1.5M to $5M+ on high-value 1-8 unit rentals.
No. They usually involve newer multi-unit buildings or portfolios rather than single homes.
It varies by program and is often lower on larger balances and on cash-out.
Possibly, but the rent must cover the payment, which often requires a large down payment in Topeka.
No. The property's rent qualifies the loan, though reserves and experience get more review.
Yes. Five or more rentals can go into a blanket portfolio loan.
On some programs, yes. Ask about a blanket loan covering both.
Yes. A finished, leased 1-8 unit building can refinance into a jumbo DSCR loan.
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