Banks That Offer a Bank Statement HELOC for an Investment Property Down Payment

The Quick Read: Large retail banks rarely write this product, so investors usually reach it through a mortgage broker that places the file with a non-bank wholesale lender, and the line then supplies cash that a separate purchase loan must accept as down payment funds.

• Finder reports that bank statement equity lines are offered almost exclusively by non-bank, non-QM lenders and brokers.
• On Lendmire’s wholesale network, a line secured by an investment property tops out at 70% CLTV, requires a 700 credit profile, and caps at $500,000.
• The purchase lender, not the equity-line lender, decides whether borrowed money counts as down payment funds.
• A DSCR purchase loan measures the new rental’s rent against its own payment, but your personal cash flow still carries both payments.
• The equity-line programs described here are available in 16 states, a narrower footprint than the DSCR platform.

Do Banks Offer a Bank Statement HELOC for an Investment Property Down Payment?

Some lenders do, but they are seldom the large retail banks. Finder’s explainer on income-flexible equity lines says these programs come almost exclusively from non-bank, non-QM lenders and mortgage brokers. It also notes that borrowers still need financial verification, such as bank statements, assets, or a profit-and-loss statement. Labels that suggest no verification overstate what these programs do.

That is why the useful question is which type of lender fits your file, not which bank to call. Lendmire is a mortgage broker that works with a network of wholesale home equity lenders. It does not lend itself, and it does not name individual lenders. The program that fits depends on the property type, your credit profile, how much leverage you need, and how your income shows up in deposits.

A broker that shops several wholesale lenders can match the scenario to the program, instead of the borrower guessing which door is open.

Key Terms Defined

Bank statement HELOC: A home equity line approved on deposit history, usually a year or two of statements, instead of tax returns.

CLTV: Combined loan-to-value, which adds every lien on the property and divides by its value.

Draw period: The stretch of time when you can borrow against the line before repayment begins.

Seasoning: The time borrowed or deposited funds must sit in your account before a purchase lender treats them as your own.

DSCR: Debt service coverage ratio, which divides a rental’s monthly rent by its monthly principal, interest, taxes, insurance, and any HOA dues.

What a Bank Statement HELOC Actually Does

The line supplies cash and nothing else. A separate purchase loan, usually a DSCR loan, buys the rental and has its own underwriting. The line is secured by a property you already own. It is never secured by the rental you are buying.

Underwriting a bank statement line focuses on the person: credit, equity, existing liens, and income inferred from deposits. Business accounts and personal accounts can both be analyzed. Common stall points are unexplained transfers, deposits that do not count as income, and account names that do not match the borrower.

Here is how the network’s lines are built:

• Structure: A standalone line in first or second lien position. Investment lines run a 5-year interest-only draw followed by a 25-year fully amortizing repayment.
• Draw at closing: At least 75% of the line is drawn at closing.
• Pricing: It floats through both the draw and repayment periods and never converts to fixed.
• Line size: $25,000 to $750,000 overall, but investment lines cap at $500,000. Only primary residences can carry a line above that amount.
• DTI: 50% maximum, qualified on the interest-only payment at the maximum draw.
• Valuation: Lines at or below $500,000 ordinarily use an automated valuation, so an investment line commonly closes without a traditional appraisal.

The CFPB’s HELOC explainer describes the general shape: an open-end line you can borrow against repeatedly, followed by a repayment period. It warns that monthly payments are often much higher once repayment starts. The CFPB’s HELOC booklet adds that some plans require an initial draw when the line opens, which matches the draw-at-closing feature here.

Which Property Secures the Line?

Collateral changes the ceiling more than any other choice. Ceilings are tiered by occupancy, so the figure depends on which property backs the line.

An investment-property line has two tiers, 720 and 700, and both reach 70% CLTV. A higher score on that collateral buys eligibility rather than more leverage. Business accounts need a 680 minimum for deposit analysis, but investment collateral already floors at 700, so bank statement income is never the binding limit there.

A line above $500,000 is primary-residence only. It needs a 700 or better credit profile (720 if the borrower chooses the 5-year-draw structure rather than the 3-year one), caps at 75% CLTV, and requires a full appraisal. Other eligibility points:

• Eligible property types include single-family, 2-4 units, PUD, townhome, and condominium, including non-warrantable condos.
• Manufactured homes, co-ops, condotels, log homes, commercial, mixed-use, and agricultural zoning are not offered.
• A borrower can hold up to three lines, and a borrower with more than 15 financed properties is not eligible.

Title is the sharpest difference from a DSCR loan. The borrower or a revocable living trust must hold title. LLCs, corporations, partnerships, and irrevocable, blind, or land trusts cannot. A rental already deeded to an LLC needs a vesting change, or a DSCR cash-out refinance instead.

From Open Line to Rental Closing, Step by Step

1. Choose the collateral. Decide whether the primary home or a seasoned rental backs the line, and check the ceiling for that occupancy.

2. Ask the purchase lender first. Get its position on borrowed down payment funds in writing before opening or drawing anything.

3. Document income through deposits. Gather a year or two of statements and be ready to explain transfers and irregular deposits.

4. Close the line and draw. The draw must land in your own account and be traceable.

5. Let the funds season if required. Some purchase lenders want the money to sit for a period before they treat it as yours.

6. Underwrite the purchase separately. The DSCR loan looks at the rental’s rent against its own payment, plus your credit and reserves.

7. Keep three pots separate. Down payment, closing costs, and reserves are tested separately. Borrowed funds are commonly accepted for the first two with documentation, and are often excluded from reserves, depending on the purchase lender.

Each step has its own decision-maker. The line lender approves the line. The purchase lender approves the use of the money. Passing the first does not settle the second.

Where the General Rule Breaks

A fully borrowed down payment. Some purchase programs accept it. Others cap the borrowed share or want part of the down payment in seasoned, unborrowed cash.

DTI loans versus DSCR loans. On a DTI-based purchase, the line’s payment counts in your debt-to-income ratio. On a DSCR loan, the ratio looks only at the property. The line payment remains real money leaving your account every month, so DSCR math alone does not show whether you can carry both obligations.

Stacked leverage. Picture a purchase at 85% LTV, which select high-leverage programs reach at roughly a 700+ score, with the 15% down payment fully borrowed. The investor is then financed near 100% of the price, and the primary home now backs the rental’s down payment. That is a concentration of risk, not just a financing choice.

The draw-period cliff. If the plan is to keep the line short-lived, the jump in payments when repayment begins matters less. If the balance will sit for years, it matters a great deal.

A rental in an LLC. A line cannot be secured by an LLC-titled property. A DSCR cash-out refinance on that rental is the usual alternative, subject to program terms.

A purchase loan on deposits. A bank statement purchase loan buys the property based on deposits. It is a different product from a line that supplies cash. If qualifying on deposits for the purchase itself is the goal, that route may fit better.

What the DSCR Purchase Side Expects

Select high-leverage DSCR purchase programs reach 85% LTV with roughly a 700+ score. Credit floors range from 620 in parts of the network to about 660 on most programs, and 700+ unlocks the strongest leverage tiers. Standard loan sizes reach up to $3,000,000 on standard programs, with smaller balances available through select lenders.

On coverage, 1.00 is where many select programs start. A separate select-lender path takes coverage below 1.00, with leverage and terms adjusted. Stronger ratios open better pricing and leverage. A bigger down payment lowers the payment and can lift the ratio, but it never erases credit floors, reserve rules, or property eligibility. The strongest files have enough equity and enough rental coverage.

Reserves vary by lender, leverage, loan size, and transaction type. About 6 months of PITIA is common, and loans above $1,500,000 typically step up to about 9 months. Remember that clearing 1.00 does not mean positive cash flow. Repairs, vacancy, management, utilities, and capex sit outside the calculation. Lendmire’s complete DSCR loans guide walks through how the ratio is built, and programs are reviewed file by file, subject to lender guidelines.

Line, Cash-Out, or Savings: How the Choice Looks

A DSCR cash-out refinance on an owned rental tops out around 75% LTV across most of the network, with about 6 months of seasoning as the common expectation. For short-term-rental collateral, the cash-out ceiling is 70% instead. The line makes the most sense for a self-employed investor whose deposits show income better than tax returns do and whose equity sits in a home rather than a rental. Savings win when the cash is available, because they add no second obligation. Lendmire’s piece Banks That Offer a Bank Statement HELOC to Cover the Down Payment on Your Next Home covers the primary-residence version of this decision. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.

If the plan is a one-time down payment that you will pay down from rental income, the numbers should hold up under both payments, not only the DSCR ratio. Lendmire also publishes a piece Best Bank Statement HELOC Program to Fund an Investment Property Down Payment Without Tax for investors weighing program differences.

Questions to Ask Before You Open the Line

• Does the purchase lender accept a fully borrowed down payment, or cap the borrowed share?
• Does it require seasoning, and for how long?
• Will it count any borrowed funds toward reserves?
• Who must hold title on the rental, and who holds it on the collateral property?
• Can the line’s payment be covered from cash flow that exists today?

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. Programs change and every file is underwritten individually, so this is not a commitment to lend.

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. Finder – No income verification HELOCs

2. The CFPB’s HELOC explainer

3. CFPB – HELOC booklet