The Quick Read: The network Lendmire brokers through does not offer a 10-year interest-only draw. Its standalone lines run a 3-year or 5-year interest-only draw, followed by a fully amortizing repayment period. The best program for your situation depends on occupancy, credit profile, and leverage, and the answer starts with the real draw structure, not the search phrase.
- Investment-property lines run one structure only: a 5-year interest-only draw, then 25 years of principal and interest.
- Investment lines top out at 70% CLTV, with a 700 minimum credit profile and a $500,000 maximum line.
- Primary residences and second homes can choose between a 3-year and a 5-year draw. The 90% CLTV ceiling exists only at 720 or better.
- At least 75% of the line is drawn at closing, so interest-only carry starts on day one.
- Title must sit with an individual or a revocable living trust. An LLC cannot hold it.
Why 10 Years Is a Search Phrase, Not a Program
Ten-year draws are a real pattern in the wider market. Experian reports that a draw period typically lasts five to 10 years, followed by a 20-year repayment period, and that it varies by lender. That is a market-wide description, not a statement about what Lendmire’s network offers.
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.
Here is the network figure. The longest interest-only runway available is 5 years, paired with a 25-year repayment. A 10-year draw is not part of the lines Lendmire places.
Why spell that out? Plenty of borrowers search for a 10-year draw because it sounds like a decade of low carrying cost. A broker who nods along and then delivers a 5-year structure has wasted your time. It is better to size the decision around the structure that exists.
Lendmire is a mortgage broker, not a lender. It works with select wholesale partners and matches a file to the program that fits. Each figure below is subject to lender guidelines and full file review, and none is a commitment to lend.
What Is a Bank Statement HELOC, Exactly?
A bank statement HELOC is a standalone home equity line, in first or second lien position, where income is documented from deposit history instead of tax returns alone. It suits self-employed owners and 1099 earners whose returns understate what actually moves through their accounts. The file is reviewed on documented income under the applicable program, subject to lender guidelines.
Two features separate it from a DSCR loan, and investors often mix them up.
- What gets tested. A DSCR loan is reviewed primarily on property-level rental income covering the payment. A bank statement line is tested on the borrower’s income and debt-to-income ratio.
- Who can hold title. A DSCR loan can often close in an LLC, subject to program terms. A HELOC line cannot.
If your rentals sit inside LLCs, a line is the wrong tool, and a DSCR cash-out refinance is the usual route. Lendmire’s piece DSCR HELOC vs. DSCR Cash-Out Refinance With a 10-Year Interest-Only Draw Period covers that decision in more depth.
How Does the Interest-Only Draw Work, Step by Step?
During the draw, you pay interest on the drawn balance and nothing toward principal. When the draw ends, borrowing stops and the line converts to a fully amortizing repayment. The CFPB’s HELOC brochure describes the same two-phase design. It notes that an interest-only plan means you pay nothing toward the principal during the draw.
On the network’s lines, the sequence looks like this:
1. Closing. At least 75% of the line is drawn at closing. This is not a pure revolving line you leave untouched.
2. Draw period. Interest-only carry on the drawn balance. Later draws start at a $1,000 minimum, with Texas at $4,000 (stated by the 5-year program).
3. Repayment period. Borrowing ends. Principal and interest amortize over the 17 or 25 remaining years, depending on the structure.
4. Pricing. It floats through both the draw and the repayment. It never converts to fixed.
The 75% closing draw matters more than most borrowers expect. It removes the idea of opening a line and only borrowing when needed. If your plan depends on a large undrawn cushion, this product fits that plan poorly.
The Two Draw Structures
The wholesale network has two programs for primary residences and second homes. For this article, the higher-leverage program is the 3-year interest-only draw with a 17-year repayment. The longer-runway program is the 5-year draw with a 25-year repayment. Tennessee shortens both, to 3 and 12 years and 5 and 10 years.
| Structure | Draw | Repayment | Occupancy |
|---|---|---|---|
| Higher-leverage program | 3 years | 17 years | Primary, second home |
| Longer-runway program | 5 years | 25 years | Primary, second, investment |
| Market-wide typical | 5-10 years | 20 years | Varies by lender |
Investment properties get the longer-runway structure only. That is the closest the network comes to what the title asks for. It is half the market-typical upper bound, but still the longest interest-only runway available.
A quoted figure always belongs to its own program’s draw and repayment. A leverage number from the higher-leverage program cannot be paired with the 25-year repayment of the other.
Qualifying: What the Underwriting Actually Tests
Qualification starts with the income your deposits support, then runs through debt-to-income, credit, equity, and property eligibility. Debt-to-income is capped at 50%, and 45% for credit profiles from 600 to 679. A ratio above 45% requires at least a 680 score.
Here is the catch most borrowers miss. The payment used to qualify you is the interest-only payment calculated on the maximum draw, not the amount you plan to draw. Drawing less later does not make you qualify more easily. A $500,000 line is tested as if fully drawn.
Credit is a single-bureau score keyed to the primary wage earner. The report can be no more than 90 days old at closing, and there are no rescores. The longer-runway program also expects two tradelines seasoned 12 months, or one seasoned 24, and a clean housing history.
Valuation depends on the line size. Lines at or below $500,000 ordinarily use an automated valuation with no traditional appraisal, though a higher CLTV may require a secondary valuation. Every line above $500,000 needs a full appraisal, and a borrower may request one on any line.
CLTV by Occupancy: Where Investors Hit the Ceiling
Investment property is the tightest category on this network. The ceiling is 70% CLTV, with a 700 minimum credit profile and a $500,000 maximum line. Both the 720+ and 700+ tiers are capped at 70%, so there is no leverage upside from a higher score.
Primary residences and second homes run looser, and they are the only place higher tiers exist.
| Occupancy | Top CLTV tier | Credit pairing | Max line |
|---|---|---|---|
| Investment property | 70% | 700 minimum | $500,000 |
| Second home | 90% | 720+ only | $500,000 |
| Primary residence | 90% | 720+ only | $500,000 at that tier |
On a primary residence, 90% exists only at 720 or better, up to $500,000. At 700 or better the cap is 75% on a line up to $750,000, or 85% up to $500,000. Lines above $500,000 are primary-residence only. They need at least 700 (720 on the longer-runway program), cap at 75% CLTV, and require a full appraisal.
A Texas primary residence is a homestead and caps at 80% combined loan-to-value. Second homes and investment properties there are handled as non-homestead transactions.
What Makes One Program the Best Fit?
The best program for your situation is the one whose structure matches your hold plan and your equity. No single line wins across the board. The lenders that write this product differ on tradelines, housing-history standards, property types, and valuation rules.
A few working distinctions help.
- Need a longer runway on a rental? The 5-year draw with a 25-year repayment is often a strong option. The decision is whether the line makes sense at all, given the 70% ceiling.
- Primary residence with strong credit? The higher-leverage program can reach higher CLTV tiers. A shorter draw and shorter repayment come with it, so the repayment payment steps up sooner and the amortization period is shorter.
- Self-employed with multiple lines? A borrower is limited to three lines. Combined exposure caps at $2,000,000 on the higher-leverage program and $750,000 on the longer-runway program. An owner with more than 15 financed properties is not eligible.
- Property type matters. Single-family, 2-4 units (a 640 minimum on the longer-runway program), PUDs, townhomes, and condominiums, including non-warrantable ones, are eligible. Modular factory-built homes qualify on the longer-runway program only. Manufactured homes, co-ops, condotels, log homes, commercial, mixed-use, and agricultural-zoned properties are not offered on either program.
Because Lendmire shops several wholesale partners, the real work is matching those variables to the program, not ranking company names.
The Payment Cliff: What Happens When the Draw Ends
The risk with interest-only is not the draw. It is the day after. The CFPB brochure notes that when the draw period ends, you enter a repayment period, often over ten or 15 years. Some plans can require the full balance at once.
On this network, the repayment is fully amortizing, with no balloon. The whole principal has to amortize over the repayment years alone, since nothing was paid down during the draw. Experian notes that many borrowers find their payments more than double compared with interest-only payments.
Because pricing floats, the cost of carry can change even if you never draw more. Stress-test three things before you commit:
- Rental cash flow at the repayment payment, not the draw payment.
- Rental cash flow if pricing moves meaningfully against you during the draw.
- Your exit: a sale, a refinance into a DSCR loan, or a planned paydown before the draw ends.
Treat the interest-only phase as a window to execute a plan, not a permanent state. A borrower who needs the draw period to stay affordable has probably borrowed too much.
Where the Rule Breaks: Edge Cases
LLC-held property. A property already deeded to an LLC cannot take a HELOC. It needs a vesting change, or a DSCR cash-out refinance instead. Entity-owned portfolios typically fit DSCR better, subject to program terms.
Large portfolios. Past 15 financed properties, a borrower is ineligible. Past three lines, the exposure cap applies. Investors scaling up usually outgrow this product.
Recent derogatories. A bankruptcy needs 4 years of seasoning from discharge or dismissal on both programs. Foreclosure history splits on primary residences and second homes. One program seasons a foreclosure at 7 years and a deed-in-lieu, pre-foreclosure, or short sale at 4. The other declines it regardless of age. Investment files follow the 7-and-4-year path.
Listed properties. A property listed for sale, or listed within the past 60 days, is ineligible in NC, PA, TN, TX, and WA.
Geography. HELOC availability is narrower than the DSCR footprint. Lendmire’s DSCR programs run across 41 markets, including Washington, D.C. HELOC lines are available only in its 16 full-service states: AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA, and WA.
HELOC or DSCR: Which Fits Your Profile?
The decision turns on how you earn and how you hold.
A bank statement line tends to fit a self-employed owner who holds a rental personally, has strong credit, and wants a smaller draw of equity. It also helps if the owner’s income, rather than the rental’s, is the stronger part of the file. The 70% CLTV ceiling and $500,000 cap are the price of that flexibility.
DSCR typically fits better for LLC-held rentals, larger equity pulls, and files where rent is the cleaner story. DSCR qualifies primarily on property-level rental income covering the payment. Most select programs start at 1.00 coverage, and a separate select-lender path goes below 1.00 with leverage and terms adjusted. Clearing 1.00 does not mean the property cash-flows after repairs, vacancy, management, and utilities, which sit outside the calculation. Cash-out refinances on standard rentals generally top out around 75% LTV with about 6 months of seasoning. That is higher than the 70% investment-line ceiling.
If your priority is leverage on an investment property, a DSCR cash-out usually outruns the line. If you want a smaller draw and have no LLC, the line may suit you. Lendmire’s complete DSCR loans guide walks through the DSCR side in full.
Key Terms Defined
Draw period: The stretch when you can borrow against the line and pay interest only on what is drawn.
Repayment period: The phase after the draw ends, when borrowing stops and payments cover principal and interest.
CLTV: Combined loan-to-value, meaning all liens on the property divided by its value.
Qualifying payment: The interest-only payment calculated on the maximum draw, used to test your debt-to-income ratio.
DTI: Debt-to-income ratio, which compares your monthly debts to your documented monthly income.
Payment cliff: The jump in payment when an interest-only draw ends and amortization begins.
Frequently Asked Questions
Can I get a bank statement HELOC with a 10-year interest-only draw?
Not through this network. The longest draw is 5 years, followed by a 25-year repayment, and that is the only structure available on investment properties. A 10-year draw appears in the broader market, but it is not a program Lendmire places.
Does drawing less lower the income I need to qualify?
No. Qualification runs on the interest-only payment calculated on the maximum draw. At least 75% of the line is also drawn at closing. Leaving part of the line undrawn does not reduce the test.
What is the highest CLTV on an investment property?
It is 70%, with a 700 minimum credit profile and a $500,000 maximum line. Higher tiers, up to 90%, exist only for primary residences and second homes, and only at a 720-or-better credit profile. Every figure is subject to lender guidelines and file review.
Can my LLC take out the line?
No. Title must be held by an individual or an inter vivos revocable living trust. LLCs, corporations, partnerships, and irrevocable, blind, or land trusts cannot hold it. A DSCR cash-out refinance is the usual alternative, depending on program terms.
Is the interest deductible?
Tax treatment varies by how the funds are used and how the property is held, so consult a qualified tax professional before relying on any deduction.
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. Call 828-256-2183 or request a quote through Lendmire’s site. An illustrative calculator on the page can give a rough sense of the structure.
The simple test before you commit is whether the deal still works when the draw ends and the full principal starts amortizing over 25 years.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage that arranges home equity lines of credit through wholesale lending partners in its 16 full-service states. Lines on primary residences, second homes and investment properties are each reviewed individually by the lender under the program’s occupancy, credit and combined-loan-to-value guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
Get Started
Ready to find the right loan for you?
See your offer in seconds. No credit pull, no obligation.
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. Experian
This article is part of Lendmire’s bank statement HELOC program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can You Get a Bank Statement HELOC on a Home Held in a Revocable Trust? · Bank Statement HELOC vs Bank Statement Cash-Out Refinance for Investors Comparing Advice · DSCR Loan vs Bank Statement Loan for an Investor With No Paycheck
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.