The Quick Read: The best program for your yard project depends on the property that secures the line, your credit profile, and how your deposits read after the lender screens them. A bank statement line proves income through account deposits instead of tax returns. Lendmire is a broker that matches the file to a wholesale lender whose program fits.
- Bank statement describes how income is documented. It is not a different kind of line.
- On an investment property, the network ceiling is 70% CLTV, with a 700 minimum credit score.
- Primary-residence lines reach 90% CLTV only at a 720-or-better profile.
- Landscaping works best as a phased project drawn against a revolving line.
- Lendmire’s HELOC lending runs in 16 states, a narrower footprint than its DSCR lending.
A self-employed owner can have strong cash deposits and a tax return that shows little income. Depreciation, write-offs, and business expenses all shrink the taxable number. A bank statement line reads the cash instead. This article covers how that works, what the lender looks at, and where a yard project fits.
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.
What Is a Bank Statement HELOC?
A bank statement HELOC is a home equity line of credit qualified with 12 to 24 months of deposit history instead of tax returns. The line itself works like any other. You get a credit limit, you draw against it, and the home is the collateral.
Credit, equity, and the property are all underwritten the usual way. This is not a loan without documentation. Under the applicable program, the lender reviews full statements, your credit report, and the property, and qualification is built around documented income, subject to lender guidelines.
The CFPB’s HELOC booklet describes the product as revolving credit secured by the home. It also warns that a lender can freeze or reduce the line if the home’s value falls. That matters when you fund a project through draws over time.
Across the wholesale network, most statement-based files start from a 12-month window. A 12-month window helps if your income is rising. A 24-month window pulls in older, lower months.
Key Terms Defined
HELOC: a revolving line of credit secured by your home, with a draw period followed by a repayment period.
CLTV: combined loan-to-value, meaning all liens on the property added together and divided by its value.
Bank statement documentation: proving income through deposits in personal or business accounts rather than tax returns.
Expense factor: the percentage of business-account deposits the lender treats as operating costs, not income.
Draw period: the stretch when you can borrow from the line, typically paying interest only.
Second lien: a loan recorded behind your existing first mortgage, which stays in place.
How Does Underwriting Read Your Statements?
The underwriter turns deposits into a monthly income figure in a fixed sequence. The steps below are the ones that decide most outcomes.
1. Pick the window. Twelve or 24 months of statements, depending on the program.
2. Pull every page. All pages for every account used, with titles matching the borrower or entity. Gaps trigger conditions.
3. Screen the deposits. Transfers between your own accounts, loan proceeds, owner injections, and refunds come out. What remains must look like your business.
4. Average what’s left across the months reviewed.
5. Apply an expense factor to business accounts. Each program sets its own factor, and you do not choose it. A lower factor generally needs support, such as a CPA letter or a third-party profit-and-loss statement.
6. Apply your ownership share. Deposits count at your percentage of the business.
7. Check the trend. Falling deposits can bring a letter of explanation or a shorter lookback.
8. Compute CLTV and DTI. DTI is debt-to-income. The program caps it at 50%, or 45% for credit profiles from 600 to 679. The line is qualified on the interest-only payment calculated on the maximum draw.
9. Run valuation and full review. Pre-approval is a document review, not a commitment, and numbers can move.
Personal-account deposits are generally not discounted the same way business deposits are. That is why mixing the two in one account muddies a file.
What Does “Best Program” Mean for a Landscaping Project?
The best program is the one whose leverage, credit tier, line size, and structure match your property and your project. A broker shops several wholesale lenders and matches the scenario. No single lender wins for every borrower.
Here is what to weigh:
| Criterion | Why it matters | What to ask |
|---|---|---|
| Occupancy | Sets the CLTV ceiling | Is the line on a primary, second home, or rental? |
| Credit tier | Unlocks higher CLTV | Where does my score land on the matrix? |
| Draw structure | Sets repayment shape | Is it a 3-year or 5-year draw? |
| Line size | Caps what you can borrow | Does my project fit under the limit? |
| Title and vesting | Decides eligibility | Is the property in my name or a trust? |
These programs offer two draw structures on primary residences and second homes. One runs a 3-year interest-only draw followed by a 17-year repayment. The other runs a 5-year draw followed by a 25-year repayment. Investment lines use the 5-year structure only. Pricing floats through both periods and never converts to fixed. Tennessee shortens both structures.
Which Leverage Applies to Your Property?
The CLTV ceiling depends on occupancy and credit, and this is where borrowers most often misread the menu. Figures below come from select wholesale-network guidelines and are subject to lender review.
| Occupancy | Top CLTV | Credit needed | Max line |
|---|---|---|---|
| Primary residence | 90% | 720+ | $500,000 at that tier |
| Primary residence (larger line) | 75% | 700+ (720 on the longer-runway program) | $750,000 at that tier |
| Second home | 90% | 720+ | $500,000 |
| Investment property | 70% | 700+ | $500,000 |
On a primary residence, a 720+ profile also reaches 75% CLTV on lines up to $750,000. A line above $500,000 is primary-residence only. It requires a 700 profile or better (720 on the longer-runway structure), caps at 75% CLTV, and needs a full appraisal. Lines at or below $500,000 ordinarily run automated valuation, though a higher CLTV may require a second valuation.
At least 75% of the line is drawn at closing on these programs. That shapes how you plan a phased project. After closing, the minimum subsequent draw is $1,000 on the longer-runway structure, and Texas runs higher at $4,000.
Is a HELOC the Right Tool for Landscaping?
A HELOC suits landscaping when the project is staged, the scope is uncertain, or you want to keep a low-cost first mortgage untouched. It fits poorly when the project is small, speculative, or when you cannot carry the payment after the draw period ends.
| Project scope | Fit |
|---|---|
| Light refresh (planting, sod, mulch) | Usually savings or a small loan |
| Mid-size hardscape (patio, retaining walls, irrigation) | A line can work, drawn by milestone |
| Full outdoor build (kitchen, pool, grading) | Strongest fit for a line, if equity supports it |
A second-lien line leaves your existing first mortgage in place. For an owner with an attractive first loan, that is the main reason to choose a line over a cash-out refinance.
The 75% drawn-at-closing feature cuts against the classic idea of borrowing only as invoices arrive. Size the line to the project. Do not take a larger one for flexibility alone.
Landscaping may support a higher appraised value, depending on comps and underwriter review. Treat any value lift as unproven. Permanent work such as hardscape, trees, and irrigation tends to hold up better than decorative planting.
Prepare Your Statements Before You Apply
Clean deposits make a cleaner file. Gather these before the first call:
- Every page of each statement for the full window, for each account used.
- Your first-mortgage statement, insurance declaration, and latest tax bill.
- A business license or entity document if you rely on business accounts.
- A short written explanation for any large one-off deposit.
Deposit habits matter:
- Do keep business and personal deposits in separate accounts.
- Do document where unusual deposits came from.
- Don’t move money between your own accounts right before applying. Underwriters strip those transfers out anyway, and they clutter the file.
- Don’t deposit loan proceeds or personal injections and expect credit for them.
Where the General Rule Breaks
Seasonal income. A window that captures only your peak season overstates income. A landscaping-trade owner will see this firsthand. Averaging smooths lumpy months, but weak months still pull the number down.
Young businesses. Time in business is a lender overlay, not a universal rule. Some underwriters weigh liquid assets and credit alongside the statements.
Commingled accounts. One account serving both business and personal use makes deposit screening harder and can cost you income credit.
Mismatched profit-and-loss. If you supply a P&L that does not support your statements, an underwriter may apply a lower expense factor than you expected.
Title in an LLC. LLCs, corporations, partnerships, and irrevocable, blind, or land trusts cannot hold title on these lines. This is the sharpest difference from a DSCR loan. A property already deeded to an LLC needs a vesting change, or a DSCR cash-out refinance instead.
Rentals. Many depository lenders write lines only on primary homes, which is why investors often arrive here. Investment lines in the network cap at 70% CLTV and need a 700 score.
Ineligible property types. Manufactured homes, co-ops, condotels, log homes, commercial, mixed-use, and agricultural-zoned properties are not offered.
Credit history. A bankruptcy needs 4 years of seasoning from discharge or dismissal. Foreclosure history splits by program, and one lender declines it entirely on primary residences and second homes.
A Phased Yard Project, Step by Step
Picture a self-employed homeowner with a primary residence, a 720 credit profile, and strong deposits but a thin tax return. Her plan is a patio and retaining wall first, then irrigation and planting, then an outdoor kitchen.
She documents 12 months of business statements. The underwriter strips transfers, applies an expense factor, and arrives at a qualifying income. Her CLTV lands well under the program ceiling because she sizes the line to the project, not to the maximum.
Then she lines up draws with her contractor’s milestones: deposit, materials, completion. A contingency covers change orders and permit or HOA delays. Because most of the line draws at closing, she parks the unspent portion with a plan, not in her spending account.
When the draw period ends, the payment shifts from interest-only to fully amortizing. Budget for that change on day one. A project that pencils only during the draw period is underfunded.
Costs, Risks, and the Tax Question
Costs include closing charges, interest on whatever you draw, and the float of pricing across both periods. Compare total cost over the life of the line, not just the opening payment.
The core risk is that your home secures a discretionary project. If values fall, the lender can freeze or reduce the line, as the CFPB booklet explains. Selling the home generally means paying the line off in full.
IRS Publication 936 ties home equity interest deductibility to using the funds to buy, build, or substantially improve the home that secures the loan. Tax treatment varies; consult a qualified professional.
Alternatives If This Isn’t the Fit
| Option | Best when |
|---|---|
| Cash-out refinance | Your first mortgage is not low-cost |
| Personal loan | The project is small and short-term |
| Savings | You can phase the work over time |
| Contractor financing | One contractor, one defined scope |
| DSCR cash-out | The collateral is an LLC-held rental |
A DSCR cash-out refinance qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. It suits rentals titled in an entity. The complete DSCR loans guide explains how that product works. For a broader look at yard financing, see Lendmire’s piece Best HELOC Program to Fund a Landscaping Project. If your goal is a different project type, Lendmire also covers whether a bank statement line can fund a flip or BRRRR.
Frequently Asked Questions
Can I use a bank statement HELOC for landscaping?
Yes, the use of funds is generally your choice. Lenders underwrite income, credit, equity, and the property, not the project. A contractor bid is useful for sizing the line.
Do I need tax returns?
Not under a bank statement program. You qualify on documented income from statements under the applicable program, subject to lender guidelines. Credit, equity, and a property review still apply.
Personal or business statements?
Either can work. Business deposits take an expense factor set by the program, while personal deposits are generally not discounted the same way. The better choice depends on which account actually carries your income.
What if my income is seasonal?
Deposits are averaged across the window, which smooths lumpy months. A short window that catches only your peak season can overstate income. Falling trends can bring a letter of explanation.
What can disqualify me?
Credit below the program floor of 600, DTI above the cap, a recent bankruptcy, an ineligible property type, or title held in an LLC can each stop a file. Rental lines also need a 700 score.
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.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage serving homeowners and real estate investors in its 16 full-service states. Home equity lines of credit are arranged through wholesale lending channels; Lendmire brokers the line and the lender underwrites each application under its occupancy-based guidelines. 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
This article is part of Lendmire’s bank statement HELOC program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Best Investment Property HELOC Program for Borrowers With 1099 Income · Investment Property HELOC Options for Self-Employed or Freelance Homeowners · Best Bank Statement HELOC Program for Self-Employed Borrowers Paid on 1099s
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.