Is a Bank Statement HELOC Available in Every State?

The Quick Read: No. A bank statement HELOC is not available in every state, because each lender and wholesale partner decides where it will lend, and Lendmire arranges this product in only 16 full-service states, which is narrower than its 41-market DSCR footprint.

• The 16 states are AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA and WA.
• Your state is only the first test. Occupancy, vesting, and property type decide the rest.
• On an investment property, the ceiling is 70% CLTV, the minimum score is 700, and the line caps at $500,000.
• If your property sits outside those states, a DSCR cash-out refinance is the usual alternative, subject to lender guidelines.

Here is the longer answer. A bank statement HELOC is a home equity line that is reviewed around documented deposits instead of traditional personal-income documentation. The “where” question has no single map, so this article shows you how to check your own situation.

Why Isn’t It Available Everywhere?

Availability is a lender decision, not a government map. No federal rule switches this product on or off state by state. Each wholesale partner picks the states where it is licensed and willing to lend.

The product also lives in the non-QM world. Non-QM loans are mortgages that fall outside the standard rules the government-sponsored enterprises buy. Scotsman Guide puts non-QM at about 5% of all mortgages and notes that bank statement programs typically use 12 to 24 months of deposits to qualify self-employed borrowers. A small slice of the market means fewer lenders, and fewer lenders means patchy footprints.

Brokers see this across many lenders. One partner may be active in 40-plus states for investor loans and still offer a home equity line in only a handful. That is why a lender’s DSCR reach and its HELOC reach rarely match.

A HELOC is also a different animal from a standard mortgage. The CFPB describes it as an open-end line you can borrow against repeatedly, with a draw period followed by a repayment period and a variable rate. The CFPB’s Truth in Lending summary adds that open-end credit like a home equity line follows different rules than closed-end mortgages. The practical result: each lender writes its own income-documentation standards for these lines.

Where Lendmire Arranges It

Lendmire, a mortgage broker working through select wholesale partners, arranges bank statement HELOCs in 16 full-service states: Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia and Washington.

Lendmire is never the lender. Every figure here is subject to lender guidelines and full file review. This is not a commitment to lend.

Other brokers and lenders will show different lists. A company that advertises “nationwide” reach may still carve out states for this one product. Ask for the state list in writing.

What Changes by Occupancy?

Your state opens the door, but occupancy sets the ceiling. The network treats the same house very differently depending on how you use it.

CLTV means combined loan-to-value: your first mortgage plus the new line, divided by the property’s value. The 90% tier exists only at a 720-or-better profile, and on a primary residence it applies to lines up to $500,000. Lower scores step down to lower ceilings. The investment tier has no level above 70%.

Rent does not size the line. The lender looks at your credit, your debt-to-income ratio (50% maximum, 45% for scores from 600 to 679), and the equity in the property.

Be careful with market chatter. Investor forums and market surveys often describe higher leverage on rentals at local banks. Those describe the broader market, not this network. On an investment property here, 70% CLTV is the top.

The Texas Exception

Texas is the clearest example of state law changing the deal. A Texas primary residence is a homestead, and the Texas Constitution restricts home equity borrowing against it. Through this network, a Texas primary residence carries an 80% combined loan-to-value cap, a 12-day waiting period, a one-lien-at-a-time rule, and 12-month seasoning. Texas properties are also limited to 10 acres.

Those rules bind primary residences only. Texas second homes and investment properties are eligible as non-homestead transactions and follow the standard tables above.

So a Texas investor often has an easier path than a Texas homeowner borrowing against the house they live in. Occupancy again.

Other State-Level Quirks

Several more state-level items can knock a file out even in a covered state:

• New Mexico and Ohio apply a CLTV cap that depends on your credit profile.
• Indiana, North Carolina, Pennsylvania, Tennessee, Texas and Washington make a property ineligible if it is listed for sale, or was listed within the past 60 days.
• Tennessee shortens the repayment periods on its lines.
• Michigan lowers the line floor to $10,000, while the floor in other states varies by scenario.

A common mistake: an investor lists a rental, pulls the listing, and applies the next week. In those six states, the 60-day clock still blocks the file.

What Stays the Same Everywhere?

The income method does not change by state. In every covered state, the file is reviewed on documented income under the applicable program, subject to lender guidelines. Underwriters typically use 12 or 24 months of personal or business statements. For business accounts, the underwriter usually applies an expense factor to deposits, and each lender sets its own.

Alternative documentation does not mean less scrutiny. Credit, debt-to-income, combined leverage, title, and valuation all still get tested.

The structure is also constant. These are standalone lines in first or second lien position. Programs offer a 3-year interest-only draw with a 17-year repayment, or a 5-year draw with a 25-year repayment. Investment lines run the 5-year draw and 25-year repayment only. At least 75% of the line is drawn at closing, so this works more like a lump sum than a flexible reserve. Pricing floats through both periods and never converts to fixed. The CFPB warns that payments can change month to month and often jump when repayment begins.

The Investor Catch: Vesting and Property Type

Even in a covered state, many rentals do not fit. Title must be held by you personally or by a revocable living trust. LLCs, corporations, partnerships, and irrevocable, blind, or land trusts cannot hold title. That is the sharpest difference from a DSCR loan, which can be made to an LLC, depending on program guidelines.

If your rental already sits in an LLC, you need a vesting change or a DSCR cash-out refinance instead.

Property types matter too. Single-family, 2-4 units, PUDs, townhomes, and condominiums (including non-warrantable) are eligible. Manufactured homes, co-ops, condotels, log homes, commercial, mixed-use, and agricultural zoning are not offered.

Exposure limits apply as well. You can hold three lines at most, and a borrower with more than 15 financed properties is not eligible.

How Do You Check Your State?

Run this five-step check before you spend time on paperwork:

1. Confirm your property’s state against the 16-state list.

2. Decide the occupancy: investment, second home, or primary residence.

3. Check how title is held. Individual or revocable trust works. An LLC does not.

4. Look at listing history if your state is Indiana, North Carolina, Pennsylvania, Tennessee, Texas, or Washington.

5. Ask for the lender’s state list and product terms in writing. Anyone arranging loans should also be findable through the NMLS Consumer Access lookup.

What If Your State Isn’t Covered?

Take the rental’s equity another way. The most common alternative is a DSCR cash-out refinance. A DSCR loan is an investor loan that qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Coverage of 1.00 is where many select programs start, and a separate select-lender path takes coverage below 1.00 with leverage and terms adjusted. Cash-out on a standard rental tops out around 75% LTV across most of the network, with about six months of seasoning as the common expectation.

The tradeoff is real. A HELOC leaves your existing first mortgage alone. A cash-out refinance replaces it. If your first mortgage is a low one, keeping it matters. For the full picture, read Lendmire’s complete DSCR loans guide.

Also remember that clearing 1.00 does not mean positive cash flow. DSCR compares rent to the full payment only. Repairs, vacancy, management, and utilities sit outside it.

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.

Myths vs. Facts

“Every state offers it.” Not accurate. This network covers 16 states, and other footprints vary.

“Bank statement means no paperwork.” False. Income is documented through deposits, and the rest of the file is still underwritten.

“The same rules apply everywhere.” False. Texas homestead rules differ, and open-end lines follow different federal rules than closed-end mortgages.

“An LLC can hold the property.” Not on this product.

“It works like a DSCR loan.” No. A bank statement HELOC tests your personal deposits and credit. A DSCR loan tests the property’s rent against its payment.

Key Terms Defined

• CLTV: combined loan-to-value, meaning all liens on the property divided by its value.
• Non-QM: a mortgage outside the standard rules that the government-sponsored enterprises buy.
• Open-end line: credit you can draw, repay, and draw again up to a limit.
• Vesting: how title to the property is held, such as in your name or a trust.
• DSCR: debt service coverage ratio, which compares a property’s rent to its full monthly payment.

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. Reach the team at 828-256-2183 or request a quote.

For the related cases, see Lendmire’s piece Does a High-Cost State Quitclaim Restart Bank Statement HELOC Seasoning?.

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.

References

1. Scotsman Guide – One out of 20 mortgages are non-QM

2. CFPB – What is a HELOC

3. CFPB – Truth in Lending Act summary