Banks That Offer a Bank Statement HELOC on an Inherited Home After Probate

The Quick Read: Big retail banks rarely write this product, so it usually comes from non-bank and portfolio lenders reached through a broker, and none of them will lend until the heir’s name sits on recorded title, because only a titled owner can pledge the house.

• “After probate” means the deed to you is recorded with the county. A closed court file alone is not enough.
• A bank statement approach changes how income is documented. It does not change the title, equity, credit, or property rules.
• On an investment property, the network Lendmire works with tops out at 70% CLTV (combined loan-to-value) and a $500,000 line, subject to lender guidelines.
• The best lender or program for you depends on your property, credit profile, leverage need, and documents.
• Co-heirs, an existing mortgage, or an LLC deed can change the answer.

Key Terms Defined

HELOC is a home equity line of credit. It works like a revolving credit line secured by the house.

CLTV is combined loan-to-value. Add every lien on the home, including the first mortgage, and divide by the home’s value.

Letters testamentary are the court document that proves an executor’s authority. Cornell’s Legal Information Institute explains that letters let the executor collect assets, pay debts, and distribute property. They do not make the heir the owner.

Recorded title means the deed putting the heir’s name on the property is filed at the county recorder.

Bank statement income is qualifying income worked out from your deposits over a look-back period, not from tax returns.

Which Kinds of Lenders Offer This?

Deposit-based equity lines sit mostly outside the big banks. Finder’s consumer guide reports that these programs are offered almost exclusively by non-bank non-QM lenders and mortgage brokers. Non-QM means the loan follows a lender’s own underwriting method rather than the standard mortgage template.

This article does not rank or name lenders. Programs change, and the right fit depends on your file. Here is how the lender types sort out.

Lendmire is a mortgage broker, not a lender. It places equity lines through select wholesale partners and matches the property, equity, and credit profile to a program. Whether a particular lender reads deposits in place of tax returns varies by program, and that match gets checked during file review.

Lendmire’s equity line programs are available in 16 full-service states. That is narrower than its 41-market DSCR investor footprint.

Why Recorded Title Is the Gate

A lender needs a borrower who owns the house, because a lien attaches to a titled owner. Probate is the court process that gathers assets, pays debts, and distributes what remains, and Nolo’s probate overview walks through it. The executor acts under letters, but letters give authority over estate assets. Title moves to the heirs only when a distribution deed is signed and recorded.

The deed’s name varies by state. You may see executor’s deed, personal representative’s deed, or deed of distribution. Any of them can serve as the document that finishes the job.

An estate loan, sometimes called a probate loan, borrows against the house while the estate still owns it. It is short-term, and the estate is the borrower, so it is not an heir’s HELOC.

How Bank Statements Become Qualifying Income

Deposits replace tax returns as the proof of income. The lender reads personal or business deposits over a look-back period. It then applies an expense factor or other analysis to arrive at usable income. Some lenders also want a self-employment history. The look-back months, expense factors, and ownership minimums differ by lender, so ask for each lender’s version in writing.

Three points trip up borrowers.

• Documentation does not disappear. Lenders still verify every deposit, and the file is reviewed on documented income under the applicable program, subject to lender guidelines.
• Inherited cash in your account may not count as income. A one-time deposit is not the same as recurring income, so expect the lender to ask which deposits repeat.
• Debt-to-income still applies. Across the equity line programs Lendmire places, the maximum DTI is 50%. It drops to 45% for credit profiles from 600 to 679, and anything above 45% requires a 680 minimum. The payment is figured on the interest-only amount at the maximum draw.

Prefer to qualify on the house’s rent instead of your deposits? That is a different loan. A DSCR loan compares the property’s rent to its full monthly obligation. Lendmire’s complete DSCR loans guide covers it. For the deposit-based route, see Lendmire’s page on the bank statement HELOC.

What the Equity Line Programs Look Like

The ceiling depends on how the home is used, so occupancy comes first. Every figure below applies to a standalone line in first or second lien position, subject to lender guidelines and full file review.

Ceilings step down with credit. On a primary residence, a 700 score reaches 85% CLTV up to $500,000, and a 620 score reaches 70% CLTV up to $400,000. If you keep the inherited house as a rental, the investment row is the one that applies. Market-wide, lenders may advertise higher figures for investment lines. They do not apply to Lendmire’s network.

More program facts:

• Line size: $25,000 to $750,000. Anything above $500,000 is primary-residence only and needs a full appraisal.
• Structure: Investment lines carry a 5-year interest-only draw followed by a 25-year repayment period. At least 75% of the line is drawn at closing. Pricing floats and never converts to fixed.
• Valuation: Lines at or below $500,000 ordinarily use an automated valuation. You may request a full appraisal in any case.
• Credit: The program uses a single-bureau score keyed to the primary wage earner. The report can be no more than 90 days old at closing.
• Derogatory history: A bankruptcy needs 4 years of seasoning from discharge or dismissal.
• Exposure: A borrower is limited to three lines. Owning more than 15 financed properties makes you ineligible.

Property types matter as well. Single-family homes, 2-4 units, PUDs, townhomes, and condos, including non-warrantable condos, are eligible. Manufactured homes, co-ops, condotels, and log homes are not eligible on these programs.

A Worked Example in Percentages

Say you inherit a single-family house and the deed is recorded in your name. A first mortgage stays in place at about 40% of the home’s value. You plan to rent the house, so the investment ceiling of 70% CLTV applies.

The most the new line could add is the gap between those two figures, roughly 30% of value, before credit, DTI, and valuation checks trim it. That is the ceiling, not a promise. A lender may approve less.

If you moved in and the house became your primary residence, the CLTV cap would depend on your credit tier. A 720 score would open the higher tiers. The occupancy decision changes the math more than any other single choice, so settle it before you apply.

Business-purpose lending is treated differently from owner-occupied lending. CFPB examination procedures list credit extended primarily for a business purpose as exempt from Regulation Z. It also treats credit to acquire or improve non-owner-occupied rental property as business purpose. Your lender decides how a given file is classified.

Where the General Rule Breaks

Probate-avoiding transfers. A transfer-on-death designation, a revocable trust, or joint tenancy with survivorship can move the house outside probate. Title may already be in your name, so a title search settles it.

Co-heirs and siblings. A single lien generally needs every owner’s signature, even from someone who is not on the loan. One holdout can stall the file.

An LLC deed. Many investors deed inherited property into an LLC. On these equity lines, an LLC, corporation, partnership, or irrevocable or land trust cannot hold title. Only the individual borrower or a revocable living trust can. A house already deeded to an LLC needs a vesting change first, or a DSCR cash-out refinance instead.

An open estate or a will contest. The personal representative acts for the estate, which means an estate loan, not your line. A contested will can also delay clean title.

The existing mortgage. It stays on the house. The first mortgage counts toward CLTV, and the new line can sit behind it.

A vacant house. Many investor programs want a lease in place or a property that is rentable. A house that needs heavy rehab may need a renovation or bridge loan first.

Time on title. Lenders treat an inherited transfer differently when they count how long you have owned the property. There is no single rule, so get the treatment confirmed in writing.

HELOC, DSCR Refinance, Estate Loan, or Sale

On standard rentals, DSCR cash-out refinances top out around 75% LTV across most of Lendmire’s network, with about 6 months of seasoning as the common expectation. Compare the line against a refinance if your first mortgage terms are not worth keeping. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.

What to Prepare While Probate Runs

You cannot close during probate, but you can get ready.

• Get certified copies of the death certificate, the letters, and the final distribution order.
• Order a title search to find every existing lien.
• Collect the look-back period of personal or business statements.
• Pull the first mortgage statement showing the balance.
• Decide whether the house will be a rental, a second home, or your residence.
• Ask co-heirs now whether they will sign.

A line cannot close until title is in your name, so work the title side first.

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. Lendmire is a mortgage broker that arranges financing through select lenders in its wholesale network, including home equity lines and DSCR investor loans. Once the deed records, your title is the one thing every lender will check first.

About Lendmire

Lendmire, NMLS# 2371349, is a mortgage brokerage that arranges home equity lines of credit through wholesale lending partners in its 16 full-service states. Lines on primary residences, second homes and investment properties are each reviewed individually by the lender under the program’s occupancy, credit and combined-loan-to-value guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.

References

1. Cornell LII Wex, letters testamentary

2. Finder, no-doc HELOCs

3. Nolo, how probate works

4. CFPB TILA exam procedures

5. Texas State Law Library probate guide