Bank Statement HELOC Requirements for Savannah Landlords Tapping Equity

The Quick Read: A bank statement home equity line lets a self-employed landlord document income with 12 to 24 months of deposits instead of tax returns, but on an investment property it still requires a 700 credit score, title held in your name or a revocable trust, and combined leverage of no more than 70% of value, subject to lender guidelines.

• On an investment property, the line caps at 70% combined loan-to-value (CLTV) and $500,000, with a 700 minimum credit score.
• The property must be titled to you personally or to your revocable living trust. An LLC cannot hold title on these lines.
• Deposits replace tax returns as proof of income. Credit, equity, debt-to-income, and the property are all still reviewed.
• Lendmire arranges these lines in 16 full-service states, Georgia among them. That is narrower than its DSCR investor footprint of 41 markets, including Washington, D.C.

Key Terms Defined

Bank statement income is a way to document earnings using the deposits in your personal or business accounts, rather than the net income on your tax returns.

HELOC stands for home equity line of credit. It is a revolving line secured by a property, and you borrow against it as needed up to a limit.

CLTV is combined loan-to-value. It adds your existing mortgage balance and the new line together, then divides by the property’s value.

DTI is debt-to-income. It compares your monthly debt payments to your monthly qualifying income.

Vesting is how title to the property is held, whether in your name, a trust, or an LLC.

DSCR is the debt service coverage ratio. It compares a rental’s monthly rent to its full monthly housing payment: principal, interest, taxes, insurance, and any association dues.

What a Bank Statement HELOC Actually Is

It is a standard equity line with a different way of proving income. You borrow against the equity in a property, and the lender reads your deposits instead of your tax returns to decide what you earn.

That matters for landlords because tax returns often understate cash flow. Depreciation, repairs, and other write-offs can shrink taxable income to almost nothing while your accounts stay healthy.

A HELOC is also not a one-time loan. The CFPB describes it as an open-end line you can draw on repeatedly during a draw period, followed by a repayment period when borrowing stops. Where a first mortgage already exists, the line sits behind it as a second lien. Across our wholesale network, a line can also sit in first position when there is no mortgage.

How Underwriting Treats Your Deposits, Step by Step

1. Choose the statement window. Trade press describes 12 to 24 months of personal or business statements as the common range for self-employed borrowers. The lender picks the window.

2. Strip out what is not income. Transfers between your own accounts, loan proceeds, refunds, and one-time deposits generally do not count.

3. Average what remains. The eligible deposits are totaled and divided by the number of months reviewed.

4. Apply an expense factor on business accounts. Business deposits are revenue, not profit, so the lender reduces them by a factor it sets. Personal statements typically get little or no reduction.

5. Scale for ownership. If a business account is shared, the lender generally counts only your ownership share.

6. Calculate DTI. The result becomes your qualifying income. The maximum DTI is 50%, and 45% for credit scores from 600 to 679. A ratio above 45% requires at least a 680 score. The payment used in the test is the interest-only payment on the full line amount, not on what you plan to draw.

7. Run everything else. Credit, existing mortgage balance, equity, title, and property type are underwritten the same as on any other file.

The result is reviewed around documented income under the applicable program, subject to lender guidelines. It does not remove underwriting. It changes which documents the underwriter reads.

One detail simplifies the picture for landlords. An investment line already requires 700, so the deposit analysis is never the tightest requirement.

The Investment-Property Requirements

These are the program figures across the select wholesale lenders in the network. They apply to investment properties specifically, and each is subject to lender guidelines and full file review.

• Credit: 700 minimum, with no tier below it. A single-bureau score is used, keyed to the primary wage earner, and the report must be no more than 90 days old at closing.
• Leverage: 70% CLTV on an investment property. A 720 score and a 700 score reach the same ceiling, so a higher score buys eligibility rather than extra leverage.
• Line size: $25,000 minimum and $500,000 maximum on an investment property. Larger lines exist only on primary residences.
• Structure: a five-year interest-only draw period, then a 25-year fully amortizing repayment period. Pricing floats during both periods and never converts to fixed.
• Draw at closing: at least 75% of the line is drawn at closing, so this is not a pure standby line.
• Later draws: the minimum subsequent draw is $1,000.
• Credit events: a bankruptcy needs four years of seasoning from discharge or dismissal. Foreclosure history follows a seven-year path, and a deed-in-lieu, pre-foreclosure, or short sale follows a four-year path.
• Exposure: a borrower is limited to three lines, and an owner of more than 15 financed properties is not eligible.

Eligible property types include single-family homes, 2-4 unit buildings, PUDs, townhomes, and condominiums, including non-warrantable condos. Manufactured homes, co-ops, condotels, log homes, commercial, mixed-use, and agricultural-zoned properties are not offered.

How Big a Line Can You Actually Get?

Size the line with percentages first. Take the property’s value, apply 70% on an investment property, subtract your existing mortgage balance, and cap the result at $500,000. Our calculator can convert the percentages to dollars as an illustrative estimate.

Three quick pictures show how the math behaves:

• Existing mortgage at 55% of value: about 15% of value is available before the cap.
• Existing mortgage at 65% of value: only about 5% of value is available, which may fall below the $25,000 minimum on a modest property.
• Existing mortgage at 70% or more of value: there is no room on an investment line.

The value itself usually comes from an automated valuation. An investment line never exceeds $500,000, and full appraisals begin only above that size. So these lines commonly close with no traditional appraisal. A higher CLTV may call for a secondary valuation, and you can request a full appraisal in any case. NerdWallet notes that multiple appraisals may be required on investment-property lines in the wider market.

The same source says fewer lenders offer these lines at all, and they carry stricter requirements because lenders see higher default risk on rentals. That thin pool is the reason a broker that shops several wholesale lenders can matter. The best program for your situation depends on your credit, your leverage need, and how your title is held.

Structures and Variations

The line can sit in first or second position. A second-lien line leaves your existing mortgage untouched, which helps if that mortgage carries terms you want to keep. You also pay interest only on what you draw after closing, though the required opening draw sets a floor.

Primary residences and second homes get a wider menu, including a three-year interest-only draw with a 17-year repayment period, plus higher CLTV ceilings at stronger credit profiles. Those do not apply to a rental. If the line you want sits on your own home rather than a rental, the occupancy changes the table entirely.

Short-term rental owners should know that occupancy review can differ on an Airbnb-style property. Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income.

Where the General Rule Breaks

The LLC problem. Title must be held by you individually or by your revocable living trust. LLCs, corporations, partnerships, and irrevocable, blind, or land trusts cannot hold title. Many landlords deed rentals into an LLC for liability reasons, and those properties need either a vesting change or a different product. A DSCR cash-out refinance is the usual alternative, since it qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.

One line, one property. Equity does not pool across your portfolio. Each line is secured by a single property, and your exposure is limited to three lines.

Listed properties. A property listed for sale, or listed within the past 60 days, is ineligible in several states, including Indiana, North Carolina, Pennsylvania, Tennessee, Texas, and Washington. Confirm the rule for your state before you apply.

Selling. The CFPB’s HELOC brochure notes that if you sell the home, you generally must pay the line off in full right away. A line on a rental you plan to sell soon can be awkward.

Variable payments. The payment moves with the balance and with pricing, since the line never converts to fixed. If you cannot repay on schedule, the rental is the collateral. Stress-test the payment at a fully drawn balance before you rely on the line.

Use of funds. Tax treatment can depend on how the funds are used and how the property is held; borrowers should keep clear records and speak with a qualified tax professional before relying on any deduction.

High leverage on the existing mortgage. A landlord with thin equity gets little from this product even with excellent credit, because the 70% ceiling is fixed.

Bank Statement HELOC or DSCR Cash-Out?

A DSCR loan and a bank statement line test different things. The HELOC tests you, through deposits, credit, and DTI. A DSCR cash-out refinance tests the property, comparing rent to the full monthly payment. Neither is better in general. The right fit depends on your title, your credit, and how much equity you want to pull.

Coverage thresholds differ by program. A 1.00 coverage ratio is where many select programs start. A separate select-lender path goes below 1.00, with leverage and terms adjusted. Clearing 1.00 is also not the same as positive cash flow, because repairs, vacancy, management, and capital expenses sit outside the calculation.

A cash-out refinance typically expects about six months of seasoning, and reserves commonly run around six months of PITIA, though they vary by lender, leverage, and loan size. Our complete DSCR loans guide covers those mechanics in full.

What the Decision Looks Like in Practice

Start with title. If your rental is in an LLC and you do not want to change it, the HELOC is likely off the table and DSCR becomes the main path.

Next, check leverage. If your existing mortgage is already near 70% of value, the line will not fit. If it sits well below that, the line may deliver real room.

Then look at your credit. A 700 is the hard floor on an investment line, with no lower tier. A score in the 660s fits many DSCR programs but not this product.

Finally, match the product to the need. A revolving line suits staged spending, such as rehab draws or a down payment on the next purchase. A lump sum for a purchase or a payoff points toward a refinance.

Your 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. Reach the team at 828-256-2183. Savannah landlords with rentals held in an LLC may find that a DSCR cash-out refinance fits the title and the equity better than a line.

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.

References

1. CFPB

2. Scotsman Guide – Rev Up the Engine for Non-QM Lending

3. NerdWallet

4. CFPB – HELOC brochure