Can You Get a Bank Statement HELOC for LLC-Titled Borrowers Who Want Equity?

The Quick Read: Usually no. A bank statement line changes how a borrower’s income is documented, but it does not change who must hold title to the collateral. Across Lendmire’s wholesale network, the individual borrower or a revocable living trust must hold title, so a deed in an LLC’s name stops the file before income is reviewed. A DSCR cash-out refinance is the usual route for entity-held rentals.

• Title is the first gate. Bank statements prove income and cannot fix vesting.
• On this network’s investment lines, LLCs, corporations, partnerships, and irrevocable, blind, or land trusts cannot hold title.
• An LLC owned by a revocable trust is still treated as an LLC.
• A DSCR cash-out refinance can usually close in the LLC’s name, subject to program eligibility.
• Moving the deed out of the LLC carries real costs. Talk to an attorney first.

Why the Deed Decides Before the Income Does

A home equity line is personal credit secured by a property the borrower owns. Lenders check vesting at the start of the file. If the deed reads “Smith Holdings LLC” and the borrower is John Smith, the lien and the borrower do not match, and the file stops.

Bank statement income is a documentation method. It reads 12 months of deposits, strips out transfers and one-time items, and gives self-employed investors a way to show income when heavy write-offs shrink the tax return. That helps the borrower side of the file. It does nothing for the collateral side.

Three separate questions sit inside every LLC file: who holds title, who is the borrower, and whose income is used. Business deposits from an LLC can support the borrower’s income. They cannot fix a title problem.

Does Federal Law Block It?

No. The restriction comes from lender and investor policy, not a statute. The federal consumer-finance regulator notes in its exempt-transactions section that credit extended for a business or commercial purpose falls outside the consumer-credit rules, and that credit to acquire, improve, or maintain non-owner-occupied rental property is deemed business-purpose regardless of unit count. The same exemption appears in the rule text on eCFR.

So a line on a rental can sit partly or wholly outside consumer rules. Lenders still choose to write these lines against individuals only. Some portfolio banks and credit unions will lend to an LLC, but that is the exception, and availability is thin. The network Lendmire works with does not.

Who Can Hold Title on This Network’s Lines

Trusts set up for estate or tax planning are generally treated as natural persons for consumer-credit purposes, which is consistent with a revocable trust being acceptable as vesting. A personal guarantee from the owner does not turn an LLC into an eligible borrower on this network. Some portfolio lenders outside it do accept guaranteed LLC borrowers, which is why you will see conflicting claims.

What a Line Looks Like When Title Works

For an investor who does hold a property personally or in a revocable trust, the investment-property line has tight parameters, and they are narrower than the primary-residence version. Subject to lender guidelines:

• Investment lines top out at 70% combined loan-to-value, at a 700 or better credit profile, with a maximum line of $500,000.
• Investment lines use a 5-year interest-only draw followed by a 25-year repayment period.
• Lines at or below $500,000 ordinarily use automated valuation rather than a full appraisal, though a borrower can request one.
• Debt-to-income tops out at 50%, and the line is a personal obligation, so the borrower’s DTI matters. The property’s rent does not decide approval.
• A borrower is limited to three lines, and owning more than 15 financed properties makes a borrower ineligible.
• Availability is limited to Lendmire’s 16 full-service states, narrower than the DSCR footprint.

The Real Route for LLC-Held Rentals

A DSCR cash-out refinance is built for this situation. It is a business-purpose loan that qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.

Mechanically, here is how it differs from a line:

Cash-out leverage on standard rentals tops out around 75% LTV across most of the network, with about 6 months of seasoning as the common expectation. Credit floors vary: a 620 floor exists in parts of the network, most programs want around 660, and 700 or better opens the strongest leverage tiers. Reserves commonly run around 6 months of PITIA but vary by lender, leverage, and loan size. Coverage of 1.00 is where select programs start, and a separate select-lender path takes coverage below 1.00 with leverage and terms adjusted.

One catch: clearing 1.00 is not the same as positive cash flow. DSCR compares rent to PITIA only. Repairs, vacancy, management, and capex sit outside the number. Lendmire’s complete DSCR loans guide walks through the full calculation.

For the side-by-side with a revolving structure, Lendmire’s piece DSCR HELOC vs. DSCR Cash-Out Refinance for LLC-Titled Borrowers Who Want Equity covers the tradeoffs.

What About Deeding the Property Out of the LLC?

It is possible. Three costs show up.

First, asset protection. Once the deed leaves the LLC, the property sits in your personal name, and the liability shield no longer wraps it.

Second, the existing mortgage. The federal Garn-St Germain exemptions protect certain transfers, such as into a revocable inter vivos trust where the borrower stays a beneficiary. FedLaws’ summary says they do not protect a transfer into an LLC and apply only to residential property with fewer than five units. Deeding out and then back in can trigger a due-on-sale clause. Whether a lender enforces it is a separate practical question, but it is a risk you carry.

Third, title insurance, transfer costs, and lender consent vary by property and state. An attorney and CPA should review the sequence before any deed is signed.

Edge Cases Worth Knowing

Portfolio banks and credit unions. A few small institutions write LLC lines. Terms vary and change, and nothing here should be read as a promise that one exists near you.

BRRRR investors. The line must sit on a property you already own, not the one you are buying. Many investors hold the property personally until the refinance is done and move it into the LLC afterward. That sequencing is also why moving a property into an LLC can close the door on a later line.

Entity-level business lines. These are a different product from a bank statement line. They underwrite the business, not the borrower’s personal income.

Closed-end second mortgages on LLC rentals. These exist in the wider market.

Which Route Fits?

Run through these in order:

1. Is the property titled in your name or a revocable trust? If yes, a bank statement line may fit, and your documentation and DTI decide it.

2. Is it titled in an LLC and you want to keep it there? A DSCR cash-out refinance is the usual path.

3. Do you have another property in your own name with equity? A line on that property can fund the next purchase without touching the LLC.

4. Is asset protection worth more than the cheaper structure? Then keep the LLC and accept the closed-end loan.

Gather these before any conversation: the deed, the operating agreement, 12 months of bank statements, the current mortgage statement, and a list of every financed property you own. Equity and rent coverage both have to clear. A big pile of equity does not erase a leverage cap, and strong rent does not fix a vesting mismatch.

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.

This is not legal or tax advice. Consult a qualified attorney or CPA about your own entity structure, deeds, and existing loan terms before changing title.

For current guidelines and terms, see Lendmire’s bank statement HELOC programs page.

About Lendmire

As a mortgage broker (NMLS# 2371349), Lendmire helps homeowners and real estate investors in its 16 full-service states open home equity lines of credit arranged through wholesale lenders. Lendmire is never the lender; line amounts, ceilings and terms are set by the lender under its guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.

References

1. CFPB, Regulation Z exempt transactions (§1026.3)

2. eCFR, 12 CFR 1026.3

3. FedLaws, Garn-St Germain due-on-sale triggers and exceptions