How Much Can You Borrow on a Bank Statement HELOC for Landlords Planning a Rehab Draw?

The Quick Read: It depends on your equity, not your rehab budget: on an investment property, the line equals 70% of the property’s as-is value, minus every mortgage already on it, capped at $500,000, and bank statements only prove your income without raising that ceiling or that cap. The lender tests the full line, not just the amount you plan to spend.

• Ceiling: 70% combined loan-to-value (CLTV) on an investment property, with a 700 minimum credit score. A 720 score earns no extra leverage on investment lines.
• Line size: $25,000 to $500,000, subject to lender guidelines.
• Valuation: the property as it stands today, not the after-repair value (ARV).
• Draw rules: at least 75% of the line is drawn at closing, and later draws carry a $1,000 minimum.
• Title: you or a revocable living trust. An LLC cannot hold title on this product.

The Formula Behind How Much You Can Borrow on a Bank Statement HELOC

The line is the CLTV ceiling times the property’s value, minus all existing liens, then trimmed to the program cap. Three limits apply at once, and the smallest one wins. Those limits are your equity, the $500,000 maximum, and your debt-to-income test.

A bank statement HELOC is a home equity line of credit where your income is documented through bank deposits instead of tax returns or pay stubs. Combined loan-to-value (CLTV) is your first mortgage plus the new line, divided by the property’s value. The ceiling on an investment property is 70% CLTV across the wholesale network Lendmire brokers through.

Picture a rental with a first mortgage you plan to keep. Subtract that balance, as a share of value, from the CLTV ceiling. What is left is the most the new line can be. This table shows the pattern in percentages, so you can apply your own value.

The third row matters. A thin-equity rental can fail outright, because the room left can be smaller than the smallest line the program writes. Bigger renovation plans do not change that math.

Does the Rehab Budget or After-Repair Value Change the Size?

No. The line is sized on value and liens, not on what you plan to spend. Investment lines ordinarily run on an automated valuation of the property as it stands today. Your finished-rehab value does not count until a later refinance.

Many landlords expect the opposite. Some renovation-focused products size against after-renovation value, but those are built around primary residences. NerdWallet notes that investment-property HELOCs come from fewer lenders, allow smaller amounts than a primary-home line, and may require multiple appraisals.

Investment lines top out at $500,000, so they sit in the automated-valuation lane. A fresh rehab will not show up in an automated value. You can request a full appraisal at any size if recent work should be reflected, but the line is still capped by the 70% ceiling.

How Do Bank Statements Fit In?

Bank statements prove income. They do not buy leverage. Non-QM lenders commonly look at 12 to 24 months of personal or business statements, as Scotsman Guide describes in its non-QM overview. The lender then applies an expense factor, and a profit-and-loss statement can substitute in some cases. Each program sets its own factor, so treat any single percentage as an illustration.

Three details matter for a landlord:

• Deposits are screened. Transfers between your own accounts, loan proceeds, and refunds are stripped out before the lender averages anything.
• The debt test uses the full line. Maximum debt-to-income is 50% on this network, and it is measured on the interest-only payment at the maximum draw. Your planned spending is not the test.
• Credit still matters. Business bank accounts need a 680 minimum for deposit analysis, but investment lines already floor at 700. Bank-statement income is never the binding constraint on an investment line.

Non-QM does not mean no underwriting. Lenders still must confirm you can repay.

The Catch for Rehab Draws: Most of the Line Funds at Closing

This is not a pay-as-you-go card. At least 75% of the line is drawn at closing on an investment line. Later draws must be at least $1,000.

A landlord who wants to draw only as contractors invoice will not get that shape here. You will carry interest on most of the line from day one, and that cost belongs in your rehab budget. The FTC confirms you pay interest only on what you borrow.

The structure is a 5-year interest-only draw period followed by 25 years of amortizing repayment. Pricing floats the whole time and never converts to fixed. When the draw period ends, the payment steps up. The CFPB also warns that if home value drops significantly, a lender may stop additional draws. Treat the undrawn portion as available, not promised.

Which Property Secures the Line?

Often not the one you are renovating. A HELOC is usually unavailable on the rental under rehab. Investors typically borrow against a different, seasoned property and repay the line by refinancing the renovated one. This is the BRRRR pattern: buy, rehab, rent, refinance, repeat.

That sequence is where a HELOC fits best. It works when you expect to refinance and take the money back out. It fits poorly when the funds will sit tied up for years, because the repayment period and floating pricing are built for a shorter horizon.

Here is the eligibility screen for the property that does secure the line:

• Property types: single-family, 2 to 4 units, PUDs, townhomes, and condos, including non-warrantable condos.
• Not eligible: manufactured homes, co-ops, condotels, log homes, commercial, mixed-use, and agricultural zoning.
• Listing status: a property listed for sale, or listed within the past 60 days, is ineligible in Indiana, North Carolina, Pennsylvania, Tennessee, Texas, and Washington.
• Exposure: you can hold up to three lines, and owning more than 15 financed properties makes you ineligible.
• Availability: this product is written in 16 states, a narrower footprint than Lendmire’s DSCR lending in 41 markets, including Washington, D.C.

What If the Rental Is Held in an LLC?

Then this product does not fit as the property is titled. Title must sit with you personally or in a revocable living trust. LLCs, corporations, partnerships, and irrevocable, blind, or land trusts cannot hold title. A property already deeded to an LLC needs a vesting change, or a different tool.

The usual different tool is a DSCR cash-out refinance, which qualifies primarily on property-level rental income covering the payment, subject to lender guidelines and program eligibility for entity-held loans. On most of the network, cash-out tops out around 75% LTV on standard rentals, and about 6 months of seasoning is the common expectation. Credit minimums start around 620 in parts of the network, and most programs want about 660.

HELOC, DSCR Cash-Out, or Rehab Loan?

Each tool is reviewed on something different, and the right one depends on the property, the plan, and the borrower.

On DSCR, coverage compares rent to the full monthly obligation of principal, interest, taxes, insurance, and any HOA dues. Many select programs start at 1.00 coverage. A separate select-lender path goes below 1.00, with leverage and terms adjusted. Clearing 1.00 does not mean positive cash flow, because repairs, vacancy, and management sit outside the calculation.

For a full walkthrough of how those loans work, read Lendmire’s complete DSCR loans guide.

Key Terms Defined

CLTV (combined loan-to-value): your first mortgage plus the new line, divided by the property’s value.

As-is value: what the property is worth today, before any planned repairs.

ARV (after-repair value): the projected value once renovations are done. A HELOC does not size against it.

Closing draw: the minimum share of the line you must borrow at closing, which is 75% here.

Draw period: the stretch when you can borrow and pay interest only. This line runs 5 years.

Lien position: your place in line for repayment. The line can sit in first or second position.

Common Ways a Rehab-Draw Plan Stalls

Most sizing problems come from a short list of mismatches. Check these before you apply:

1. Thin equity. The first mortgage leaves less room than the $25,000 minimum.

2. Credit under 700. The network does not write investment lines below that floor, and 720 adds no leverage.

3. Wrong title. The property sits in an LLC or an irrevocable trust.

4. Wrong collateral. You are trying to borrow against the same unit you are gutting.

5. Stale value. Recent work does not appear in an automated valuation, so the line reflects the old value.

6. Overrun risk. Costs exceed the line, and the only fix is a second source of capital.

An overrun is the one to plan for. Because the ceiling and the cap are fixed, a budget that grows mid-project cannot be solved by asking for a bigger line. Build a cushion into the plan, or line up a refinance path before you start.

If you are weighing options, the figures above are program ranges, not offers. Every file is underwritten individually, and an illustrative calculator can help you test equity scenarios. Details are subject to lender guidelines and are not a commitment to lend.

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. A landlord who sizes the line against as-is equity, rather than the rehab budget, goes into the project with a number that holds up.

About Lendmire

Lendmire — NMLS# 2371349 — is a mortgage broker that arranges home equity lines of credit in its 16 full-service states through wholesale lenders, on primary residences, second homes and investment properties. Every line is subject to the lender’s guidelines and full underwriting. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.

References

1. NerdWallet

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

3. FTC – Home Equity Loans and Home Equity Lines of Credit

4. CFPB