Banks That Offer a Bank Statement HELOC on a Non-Warrantable Condo

The Quick Read: Few large retail banks write a bank statement HELOC on a non-warrantable condo, and no trustworthy universal list exists, so the useful question is which lenders write it and what they check, and a broker that shops several wholesale lenders can match your building and credit to the right program.

• The building and the borrower are reviewed separately, and both have to pass.
• A non-warrantable label is a review trigger, not an automatic decline.
• On an investment condo, the network ceiling is 70% combined loan-to-value (CLTV), with a 700 minimum credit score.
• Condotels, co-ops, and LLC-held titles are the usual dealbreakers.

Key Terms Defined

Warrantable condo: a condo project that meets the project rules set by Fannie Mae and Freddie Mac, so conventional lenders can sell the loan to them.

Non-warrantable condo: a condo project that fails one or more of those agency rules, even if the unit itself is in good shape.

Bank statement HELOC: a home equity line of credit where the lender reads your business or personal deposits to estimate income, instead of leaning on tax returns alone.

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

DSCR loan: an investor loan that qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. A bank statement HELOC works the other way, on the borrower’s own file.

What Makes a Condo Non-Warrantable?

A condo is non-warrantable when the project, not the borrower, fails agency eligibility rules. Enact, a mortgage insurer, lists the common triggers: heavy investor or single-entity ownership, commercial space above roughly 35%, pending litigation naming the HOA or developer, unmet presale requirements, and certain business arrangements inside the project.

Those rules exist for loans sold to the agencies. A HELOC placed through a non-QM wholesale lender is not sold that way. The lender sets its own project review, and that is why a building that fails the agency screen can still be financeable.

Not every trigger carries the same weight. Investor concentration and extra commercial space are often reviewable. Active litigation, insurance gaps, or serious deferred maintenance are harder, because they point to risk in the building itself. Enact also notes that some files get case-by-case review rather than an automatic no.

Why Do Most Banks Say No (and Who Says Yes)?

Some portfolio lenders will look at the building. Others only lend on owner-occupied units. Requirements differ widely from one lender to the next, so one decline tells you little about the next lender.

That is the honest reason a neutral bank list does not exist. Programs shift, and each lender’s appetite depends on why the building is non-warrantable. The lenders that write this product depend on the property type, occupancy, credit profile, and the building’s financial health.

This is where a broker earns its place. Lendmire works with a network of wholesale HELOC lenders and does not lend itself. The team matches the scenario to the program whose condo review and leverage tiers fit, rather than sending you from bank to bank. The best program for your situation depends on the file, not on a name.

How Underwriting Treats This Loan, Step by Step

Two reviews run side by side. One looks at you. The other looks at the building.

1. Borrower income. The lender reads bank statement deposits to estimate income. This is not a no-paperwork loan. The file still needs statements, a credit report, and a debt-to-income test, and income is reviewed on documented deposits under the applicable program, subject to lender guidelines.

2. Credit. The program floor starts at 600, but occupancy raises it: 640 for a second home and 700 for an investment property. The score model uses a single bureau report, keyed to the primary wage earner. The report can be no more than 90 days old at closing.

3. Debt-to-income. The maximum is 50%, and 45% for credit profiles from 600 to 679. The lender reviews your file on the interest-only payment calculated on the maximum draw, not on what you plan to borrow.

4. Project review. The lender asks for the HOA budget, reserve information, the governing documents, and a condo questionnaire. Reserves, delinquencies, special assessments, and investor concentration are the items that move the answer.

5. Valuation and lien position. Lines at or below $500,000 ordinarily run an automated valuation, though a higher CLTV may require a secondary valuation. Any line above $500,000 needs a full appraisal, and you can request one in any case. The line can sit in first or second position, so a low existing first mortgage can stay untouched.

6. Draw and repayment. The CFPB describes a HELOC as an open-end line you can borrow against repeatedly during a draw period, followed by a repayment period. On this network, primary and second-home lines run either a 3-year interest-only draw with a 17-year repayment, or a 5-year draw with a 25-year repayment, and investment lines use the 5-year draw with 25-year repayment only.

A larger equity cushion helps at step five. It does not erase the credit floors or property rules in the other steps. The strongest files clear all of them.

What the Network’s Programs Allow, by Occupancy

Ceilings depend on how you use the unit, so no single number describes this product. The network places files with two wholesale HELOC programs. One is a higher-leverage program. The other is a longer-runway program with a longer interest-only draw. Where they differ, each figure below applies only within its own program’s terms, and everything is subject to lender guidelines and full file review.

The 90% tier exists only for primary and second-home lines, and only with a 720 or better profile. A line above $500,000 is primary-residence only. It needs a credit profile of 700 or better (720 on the longer-runway program), caps at 75% CLTV, and requires a full appraisal.

Other structure points matter for planning:

• Line sizes start at $25,000, and at least 75% of the line is drawn at closing.
• Primary and second-home lines offer a 3-year interest-only draw with a 17-year repayment, or a 5-year draw with a 25-year repayment. Investment lines use the 5-year draw and 25-year repayment only.
• The line stays variable and does not convert to a fixed payment.
• A borrower can hold up to three lines, and an owner of more than 15 financed properties is not eligible.
• Condominiums, including non-warrantable ones, are eligible property types. Condotels and co-ops are not.
• A bankruptcy needs four years of seasoning, and foreclosure-family history is handled differently by each program.
• Availability is limited to Lendmire’s 16 full-service states: AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA, and WA.

Where the General Rule Breaks

Several situations change the answer even when the building looks fine on paper.

Title held in an LLC. Only an individual borrower or a revocable living trust can hold title on this product. LLCs, corporations, partnerships, and irrevocable, blind, or land trusts cannot. If the condo is already deeded to an entity, you need a vesting change or a different product. Subject to program terms, a DSCR cash-out is the usual alternative.

Condotels and hotel-style projects. These are non-warrantable by agency standards, and the HELOC network does not offer them at all. A building that rents by the night with front-desk services belongs in a different conversation.

Why the building failed. A project with high investor concentration is a different story from one with active litigation. Telling the lender early which trigger applies saves a wasted application.

Status changes. Warrantability is not permanent. A building can regain agency eligibility when its numbers improve or the rules shift, with no change to the physical property. A lender’s review is a snapshot, so a no today is not a no forever.

The line can shrink. A lender can generally freeze or reduce an open line if values or credit deteriorate. Borrowers who plan to depend on the line for a future purchase should treat it as flexible capital, not guaranteed capital. The FTC also reminds borrowers that the line is secured by the property, so missed payments can lead to foreclosure.

Listings and recent sales. A property listed for sale, or listed within the past 60 days, is ineligible in NC, PA, TN, TX, and WA.

HELOC, Cash-Out Refinance, or DSCR Loan?

The right tool depends on whose income carries the file and what happens to the first mortgage. A HELOC leaves a low-balance first mortgage in place. A cash-out refinance replaces it. A DSCR loan is reviewed on the property’s rent instead of your personal deposits.

The DSCR side works like this. The coverage ratio compares monthly rent with the full monthly housing obligation. A 1.00 ratio is where many select programs start. A separate select-lender path takes coverage below 1.00, with leverage and terms adjusted. Clearing 1.00 does not mean the condo cash flows, because repairs, vacancy, management, and HOA surprises sit outside the ratio. You can read the full mechanics in Lendmire’s complete DSCR loans guide. Cash-out files typically expect about six months of seasoning, and DSCR investor programs run across 41 markets, including Washington, D.C.

Picture a self-employed owner with strong deposits and a first mortgage they want to keep. The HELOC is the natural fit, as long as the credit score clears 700 and the title is personal. Now picture an owner whose condo sits in an LLC, or whose deposits are uneven but whose rent covers the payment well. The DSCR cash-out is likelier to match that file. Both can be true of the same owner at different properties.

Exit Strategy Is Part of the Math

A non-warrantable building narrows the pool of buyers, because many retail buyers find conventional financing a poor fit there. That can slow a future sale or weigh on price. The same thin lender pool applies when you refinance later. If you plan to hold for years, this matters less. If you plan to sell within a short window, factor it in before drawing against the unit.

Financing in these buildings also tends to run on tighter leverage than financing in warrantable ones, which is why the investment ceiling here sits at 70% CLTV.

Who Should Skip This Product

A bank statement HELOC is the wrong fit when any of these apply:

• Title sits in an LLC or an irrevocable trust and you do not want to change it.
• The building operates as a condotel or is a co-op.
• Your credit profile is below 700 and the unit is an investment property.
• You need more than $500,000 on an investment or second-home condo.
• The condo’s rent is the strongest part of your file and your personal deposits are thin. That points toward a DSCR structure.
• You live outside the 16 states where the HELOC is offered.

Questions to Ask and Documents to Gather

Before any application, ask the lender or broker these questions:

• Does the program accept non-warrantable condos for my occupancy type?
• What is the investor concentration limit, and how is it measured?
• How do you treat commercial space, litigation, and special assessments?
• Does the line sit in first or second position on my file?

Then gather:

• Twelve months or more of deposit statements for the accounts you want reviewed
• A current mortgage statement
• The HOA budget, reserve statement, and condo questionnaire
• Title or vesting documents showing who holds the property
• A recent credit report summary and a list of all financed properties

The HOA documents are usually the slowest to collect. Start there.

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. Call 828-256-2183 or request a quote. The bank statement HELOC overview covers the product in more detail.

About Lendmire

Lendmire (NMLS# 2371349) is a mortgage broker. Home equity lines of credit — on a primary residence, a second home or an investment property — are arranged through wholesale lenders in Lendmire’s 16 full-service states, and every line is underwritten by the lender under its program guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.

References

1. Enact – What makes a condominium non-warrantable

2. CFPB

3. FTC – Home equity loans and home equity lines of credit