The Quick Read: It depends on occupancy: at a 680 score, a wholesale non-QM lender reached through a broker usually fits best on a primary residence or second home, while an investment-property line needs a 700 score on the network Lendmire uses, so credit unions or portfolio banks become the fallback. A bank statement HELOC is a home equity line that is reviewed around documented deposits instead of traditional personal-income documentation. Every figure below is subject to lender guidelines and full file review.
- Primary residence at 680: the network’s ceiling reaches 85% combined loan-to-value (CLTV), with lines up to $500,000.
- Second home at 680: the same 85% CLTV and $500,000 line cap apply.
- Investment property at 680: not eligible, because the network’s investment floor is 700 and tops out at 70% CLTV.
- The 90% tier: it exists only at a 720-or-better credit profile on primary and second homes.
- Debt load: the maximum debt-to-income ratio is 50%, and a ratio above 45% needs at least a 680 score.
Where Does a 680 Score Land?
A 680 score clears the floor on a primary residence and a second home, and it misses the floor on an investment property. Occupancy decides almost everything here. The score matters less than what the property is used for.
How large a line the equity supports.
An equity line is sized by combined loan-to-value, occupancy, and credit — not by rental coverage. Switch the occupancy or the credit band and the ceiling moves with it.
Investment-property lines require a 700 minimum credit score; second-home lines start at a 640 minimum and primary-residence lines at 600, and the combined-LTV ceiling steps down as the credit band drops on primary-residence and second-home lines and holds on investment-property lines; the line cap steps down on primary-residence lines and holds at every tier on investment-property and second-home lines.
A debt-to-income ratio above 45% requires 680+ credit. Profiles under 640 are limited to single-family homes. At least 75% of the approved line is drawn at closing. Ceilings, floors, and caps update from Lendmire’s centralized guideline source.
Line estimate
Illustrative estimate only — not a quote, Loan Estimate, approval, or commitment to lend. The rate is an editable assumption; equity-line pricing is variable through both the draw and repayment periods and never converts to fixed. Occupancy and credit drive the ceiling together: an investment property tops out at 70% combined LTV (minimum credit 700, line cap $500,000); a second home tops out at 90% combined LTV (minimum credit 640, line cap $500,000), with the ceiling stepping down as the credit band drops (the cap holds at every tier); a primary residence tops out at 90% combined LTV (minimum credit 600), and its $750,000 maximum line is available only at 75% combined LTV or below with a 700-or-better credit profile (720 on the longer-runway program) and a full appraisal. Lines above $500,000 require a full appraisal. Credit, debt-to-income, property type, and full underwriting review all affect the final line.
CLTV, or combined loan-to-value, is your existing mortgage balance plus the new line, divided by the home’s value. Here is how the network’s tiers read for a borrower at 680:
| Occupancy | Minimum score | Ceiling at 680 | Max line |
|---|---|---|---|
| Primary residence | 600 | 85% CLTV | $500,000 |
| Second home | 640 | 85% CLTV | $500,000 |
| Investment property | 700 | Not eligible | $500,000 |
Notice what is missing. The 90% CLTV tier requires 720 or better, so a 680 borrower never sees it. A few states also change the math on a primary residence, for example by capping homestead leverage at 80% combined. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
The investment row matters most to landlords. Investment lines on this network start at a 700 score and stop at 70% CLTV. There is no tier above that. If you sit at 680, you have two honest choices: raise the score past 700, or pull equity from a different property.
Debt-to-income (DTI) is the other test. The ceiling is 50%, and it drops to 45% for scores from 600 to 679. At 680 you stand on the higher side of that line. The lender also reviews the interest-only payment calculated as if you drew the maximum line, not just what you plan to use.
Which Lender Type Fits at 680?
For a self-employed borrower at 680, a wholesale non-QM lender is usually the strongest fit. Non-QM means the loan falls outside standard agency documentation rules. These lenders accept bank statements as income proof, and a broker can shop several programs at once.
Credit unions and portfolio banks are the other realistic route. They keep loans on their own books and set their own rules. That helps if you have a long relationship and clean deposits. It hurts if their policy simply requires traditional personal-income documentation.
| Lender type | How it documents income | Fit at 680 |
|---|---|---|
| Wholesale non-QM, via broker | Statements, P&L, or DSCR | Strong on primary or second home |
| Credit union | Own rules, relationship-driven | Good if you already bank there |
| Portfolio bank | Held in-house, case by case | Workable; rules vary widely |
| Big bank or large retail lender | Often return-based | Less flexible for write-offs |
Bank statement HELOCs are not everywhere. They live on select programs, and most retail lenders do not offer them. That is why the wholesale route matters.
Across the network, several lenders with different guidelines compete for the same file. One may weigh overdrafts harder. Another may be more forgiving of a dip in income. A single lender’s page cannot show you that spread.
Lendmire is a broker, not the lender. It arranges these lines through select wholesale partners, and the lender reviews eligibility and approves. Home equity lines through Lendmire are available in 16 full-service states only, which is narrower than its DSCR investor footprint of 41 markets, including Washington, D.C.
How Do Deposits Become Qualifying Income?
The lender takes your deposits, removes what is not income, applies an expense factor, and divides by the number of months. Most programs ask for 12 or 24 months of statements. A declining trend can cut a 24-month review back to 12.
Run the numbers on a simple pattern. Say twelve months of business deposits total 100 units:
1. Strip out transfers between your own accounts and any loan proceeds. Suppose that removes 10%, leaving 90.
2. Apply an expense factor. Many programs use a flat percentage, often near half for business accounts, unless a CPA letter or profit-and-loss statement supports a different figure. At half, 90 becomes 45.
3. Divide by twelve. That monthly figure is your qualifying income.
This is a modeled example, not a program quote. It shows why the same bank balance can produce very different qualifying income depending on the account type and the expense factor.
Account choice matters. Whether a lender prefers personal or business statements depends on the program. Business statements usually carry the expense factor. Ask which set the lender reads before you gather anything.
Deposit hygiene decides many files. Underwriters look for overdrafts, returned items, large unexplained deposits, and personal and business money mixed in one account. If you cannot explain a deposit in one sentence, expect a letter request.
This is not a skip-the-underwriting product. The loan is reviewed on documented income under the applicable program, subject to lender guidelines. Credit, debt load, combined leverage, and title still get tested.
How Big a Line Does Your Equity Support?
Your available line is the CLTV ceiling applied to your home’s value, minus what you already owe, and then limited by the line cap. In percentages, that is simple. At 85% CLTV on a primary residence, your first mortgage plus the new line can total up to 85% of the home’s value.
Say your first mortgage already equals 60% of the home’s value. The room left is about 25% of value, before the $500,000 line cap. If your home is worth a large amount, the cap can bind before the percentage does.
Valuation is usually light on this network. Lines at or below $500,000 ordinarily run an automated valuation, though a higher CLTV may require a second look. You can always request a full appraisal. Lines above $500,000 require one, but those are outside the 680 conversation.
The line can sit in first or second position. That means it can stand alone, without touching your existing first mortgage. Lendmire’s piece Should a Self-Employed Owner Open a Bank Statement HELOC or Refinance? walks through that choice.
What Stalls a 680 File?
Most stalls trace to a short list of causes, and each has a fix you can start before you apply:
| Cause | Fix |
|---|---|
| Mixed personal and business deposits | Separate accounts for a few months |
| Large unexplained deposits | Write a short source letter |
| Income dropping year over year | Expect the 12-month window |
| Credit report too old | Pull a fresh report; confirm with your lender how recent it must be, since requirements vary by file and lender |
| Property deeded to an LLC | Retitle to you or a revocable trust |
Credit has a few quirks. The network uses a single-bureau score keyed to the primary wage earner, and rescores are not allowed. A 680 that slips to 670 after a new balance can drop you into the 45% DTI tier. Pay cards down before the report is pulled, not after.
Derogatory history is seasoned by type. A bankruptcy seasons in four years from discharge or dismissal. Foreclosure-family history splits by program on primary and second homes: one wholesale program seasons a foreclosure in seven years and a short sale or deed-in-lieu in four, while the other declines that history regardless of age.
Property and exposure limits also matter. Single-family, 2-4 unit, PUD, townhome, and condo properties are eligible, including non-warrantable condos. Manufactured homes, co-ops, condotels, log homes, and commercial or agricultural-zoned property are not offered. A borrower is limited to three lines, and anyone with more than 15 financed properties is not eligible.
What Does the Line Actually Do After You Close?
You borrow in two phases. Under the CFPB’s explanation of a HELOC, a draw period comes first and a repayment period follows. Payments are often significantly higher once repayment begins, and these lines usually carry a variable rate.
On this network, two draw structures exist for primary and second homes. One runs a 3-year interest-only draw and then a 17-year fully amortizing repayment. The other runs a 5-year draw and then 25 years. Investment lines use the 5-year structure only. Pricing floats during both phases and never converts to fixed.
Interest-only draws also leave the balance untouched. The CFPB’s HELOC brochure notes that nothing goes toward principal during that period. You borrow, and you owe the same amount when the draw ends.
Two network details catch borrowers off guard. At least 75% of the line is drawn at closing, so this behaves more like a lump sum than a flexible reserve. Later draws carry a $1,000 minimum in most states, and some states set it higher.
Check which product is actually being offered. Many non-QM second liens are closed-end, meaning one lump sum, not a reusable line. Ask the lender to say plainly whether the account revolves.
Your home secures the line. Missed payments put the home at risk, not just your credit. 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.
The Investor Decision: A Line on Your Home or a Loan on the Rental
At 680, a landlord chooses between two paths. One is a bank statement line on an owner-occupied home or second home. The other is a DSCR loan on the rental itself.
DSCR stands for debt service coverage ratio. It compares a property’s monthly rent to its full monthly payment, meaning principal, interest, taxes, insurance, and any association dues (PITIA). The loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. Lendmire’s complete DSCR loans guide covers the mechanics.
The 680 score works better on that side. Across the network, a 620 floor exists in some programs, most programs want about 660, and 700 or more unlocks the strongest leverage. Coverage of 1.00 is where many select programs start. A separate select-lender path takes coverage below 1.00, with leverage and terms adjusted.
Typical DSCR leverage looks like this:
- Purchase: most files land at 75%-80% LTV, and select programs reach 85% LTV with roughly a 700+ score.
- Cash-out refinance: it tops out around 75% LTV across most of the network, with about six months of seasoning commonly expected.
- Loan size: up to $3,000,000 on standard programs (smaller balances available through select lenders).
Clearing 1.00 is not the same as positive cash flow. Repairs, vacancy, management, utilities, and capital expenses sit outside the calculation.
The trade-off is structural. A DSCR cash-out replaces your first mortgage, while a standalone line sits beside it. If your existing first mortgage is cheap, leaving it alone is the point of a line.
Title is the sharpest difference. A HELOC property must be held by you personally or in a revocable living trust. A property deeded to an LLC cannot take one, so it needs a vesting change or a DSCR cash-out instead, with LLC borrowers subject to program terms.
If you are close but not at 700, a 30-to-60-day readiness plan can help. Clear card balances, correct report errors, and separate business and personal deposits. Then rerun the score before applying.
Questions to Ask Any Lender
Compare offers on the same basis. Ask each lender the same short list:
1. Is this an open-end line or a closed-end lump sum?
2. Which statements do you read, personal or business, and for how many months?
3. What expense factor applies, and can a CPA letter replace it?
4. What CLTV applies to my occupancy and score?
5. How much must I draw at closing?
6. Does the line sit in first or second position?
A lender who cannot answer the draw and expense-factor questions plainly is a red flag.
Key Terms Defined
HELOC: a home equity line of credit, a loan secured by your home that you can borrow against in stages.
CLTV: combined loan-to-value, all mortgage debt on the home divided by its value.
Draw period: the opening stretch of the line, often interest-only, when you can borrow.
Expense factor: the percentage a lender subtracts from business deposits to estimate what you actually keep.
Non-QM: a loan that uses documentation outside the standard agency box, such as bank statements.
DSCR: the ratio of a property’s rent to its full monthly payment.
Next Step
If you are considering a home equity line and want to see how the numbers work, Lendmire can help you compare HELOC options based on the property, the equity available, credit profile, combined leverage, and your goals. For a rental purchase or cash-out, Lendmire’s bank statement HELOC program checklist lists the documents to gather first.
Frequently Asked Questions
Can I get an investment-property bank statement HELOC at 680?
Not on this network. Investment lines require a 700 score and cap at 70% CLTV and $500,000. At 680, a primary-residence or second-home line, or a DSCR loan on the rental, is the realistic path. Exact terms depend on lender and investor guidelines, credit profile, reserves, and property review.
Is a bank statement HELOC the same as a no-questions loan?
No. It is reviewed on documented income under the applicable program, subject to lender guidelines. You still face credit, debt-to-income, combined leverage, valuation, and title review.
Why does my 680 score put me in a tighter debt-load tier than 700?
It does not, in the usual sense. A ratio above 45% requires a 680 minimum, so 680 clears that bar. Scores from 600 to 679 are held to 45%. The score also steers your leverage tier, so a higher score can lift your CLTV ceiling.
Can I hold the property in my LLC?
Not for a HELOC. Title must be in your name or a revocable living trust. A DSCR loan can fit an LLC-titled rental, subject to lender program eligibility.
Do I need to draw the whole line?
At least 75% of the line is drawn at closing on both wholesale programs. Borrow only what you need, because interest accrues on the drawn balance and pricing floats.
About Lendmire
Lendmire is a mortgage brokerage (NMLS# 2371349) arranging home equity lines of credit — primary-residence, second-home and investment-property lines — through a wholesale lending network in its 16 full-service states. Eligibility is determined by the lender on each file. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 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. CFPB, What is a home equity line of credit (HELOC)?
This article is part of Lendmire’s bank statement HELOC program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Bank Statement HELOC Credit and CLTV Tiers for Maximum Draw · Bank Statement HELOCs When Tax Returns Show a Business Loss · Should a Self-Employed Owner Open a Bank Statement HELOC or Refinance?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.