The Quick Read: A 30-year term on a bank statement home equity line is a timeline, not a special product. On Lendmire’s wholesale network it means a 5-year interest-only draw followed by a 25-year fully amortizing repayment, with income typically documented through 12 to 24 months of deposits. The right provider depends on property type, credit, and equity. Lendmire is a mortgage broker, so it does not lend. It matches your file to a wholesale lender whose guidelines fit.
- The 30 years are two phases. The 5-year draw and 25-year repayment add up to 30. The 3-year draw with 17-year repayment adds up to only 20.
- Investment properties get one structure. Investment lines run the 5-year draw and 25-year repayment only, with a 70% CLTV ceiling, a 700 minimum credit score, and a $500,000 maximum line.
- Pricing floats. It never converts to a fixed payment, so payments can change during the draw and the repayment.
- Title matters. An LLC cannot hold title on this product, subject to lender guidelines.
- Availability is narrower than DSCR. HELOC placement covers 16 full-service states, while DSCR investor loans cover 41 markets, including Washington, D.C.
Why Nobody Can Hand You a Ranked List of Providers
A leaderboard would mislead you here. Whether a lender writes a bank statement line on a rental depends on how the property is titled, your credit profile, the lien position, and how much equity you hold. A lender that fits one file can decline the next.
How large a line the equity supports.
An equity line is sized by combined loan-to-value, occupancy, and credit — not by rental coverage. Switch the occupancy or the credit band and the ceiling moves with it.
Investment-property lines require a 700 minimum credit score; second-home lines start at a 640 minimum and primary-residence lines at 600, and the combined-LTV ceiling steps down as the credit band drops on primary-residence and second-home lines and holds on investment-property lines; the line cap steps down on primary-residence lines and holds at every tier on investment-property and second-home lines.
A debt-to-income ratio above 45% requires 680+ credit. Profiles under 640 are limited to single-family homes. At least 75% of the approved line is drawn at closing. Ceilings, floors, and caps update from Lendmire’s centralized guideline source.
Line estimate
Illustrative estimate only — not a quote, Loan Estimate, approval, or commitment to lend. The rate is an editable assumption; equity-line pricing is variable through both the draw and repayment periods and never converts to fixed. Occupancy and credit drive the ceiling together: an investment property tops out at 70% combined LTV (minimum credit 700, line cap $500,000); a second home tops out at 90% combined LTV (minimum credit 640, line cap $500,000), with the ceiling stepping down as the credit band drops (the cap holds at every tier); a primary residence tops out at 90% combined LTV (minimum credit 600), and its $750,000 maximum line is available only at 75% combined LTV or below with a 700-or-better credit profile (720 on the longer-runway program) and a full appraisal. Lines above $500,000 require a full appraisal. Credit, debt-to-income, property type, and full underwriting review all affect the final line.
Large retail lenders and depository institutions vary a great deal on investment-property lines. One BiggerPockets thread shows local banks and credit unions treating non-owner-occupied lines very differently from one another. Some decline them, and some write them at modest leverage. That spread is the reason a broker exists. A broker with access to many wholesale lenders reads the guidelines of each and matches the scenario to the program that fits it.
This article therefore explains how the structure works and what decides approval. It also gives you questions to ask any provider.
What Does a 30-Year HELOC Term Actually Mean?
A 30-year term is the draw period plus the repayment period. It is not 30 years of borrowing. On the 5-year draw structure, you can borrow and pay interest only for 5 years. Then borrowing stops and 25 years of fully amortizing payments begin, covering both principal and interest.
Here are the structures that exist across the network:
- 3-year draw and 17-year repayment. This is a 20-year life. It is offered on primary residences and second homes only.
- 5-year draw and 25-year repayment. This is the 30-year life. It is offered on primary residences, second homes, and investment properties.
- Tennessee shortens both structures. The 3-year draw pairs with a 12-year repayment, and the 5-year draw pairs with a 10-year repayment, so neither reaches its usual length there.
Four more mechanics shape how the line behaves:
1. A large draw at closing. At least 75% of the line must be drawn at closing. This is not a reserve you leave untouched.
2. A standalone line. It sits in first or second lien position, so it can stand alone on a property with no mortgage.
3. Subsequent draws. After closing, the minimum draw is $1,000 under the 30-year structure, with a Texas exception at $4,000.
4. Floating pricing. Pricing floats through both the draw and the repayment, and it never converts to fixed. The federal consumer-finance regulator’s HELOC booklet explains that plans like this tie to a public index and carry a cap, and that payments can change even if you draw nothing more.
The same booklet warns about plans that end in a balloon payment. The 30-year structure here is fully amortizing, so the repayment phase is designed to retire the balance. Still, read the terms of any line before you sign.
Key Terms Defined
Draw period: The window when you can borrow against the line and pay interest only.
Repayment period: The phase after the draw ends, when borrowing stops and payments include principal and interest.
CLTV (combined loan-to-value): All liens on the property added together, divided by its value.
DTI (debt-to-income): Your monthly debts divided by your monthly qualifying income.
Expense factor: A percentage a lender subtracts from business deposits to estimate what you actually keep.
Bank statement documentation: Qualifying on income shown by your deposits rather than by tax returns, under the applicable program and subject to lender guidelines.
Lien position: Whether the line is the first or second claim against the property.
How Does Underwriting Treat Bank Statement Income?
The lender reads your deposits and turns them into qualifying income. It still underwrites credit, equity, DTI, and the property. A bank statement line is reviewed on documented income under the applicable program, subject to lender guidelines. It is not a shortcut around underwriting. Scotsman Guide notes that non-QM lenders must still confirm ability to repay, even though they have more flexibility in how they do it.
Here is the process step by step:
1. You supply statements. Non-QM programs commonly ask for 12 to 24 months of consecutive, complete statements. Personal or business accounts may be used, depending on the program.
2. The underwriter cleans the deposits. Transfers between your own accounts, loan proceeds, and one-time items come out. Only recurring business income counts.
3. An expense factor is applied. On business accounts, the lender subtracts a percentage for costs. Scotsman Guide uses 50% as an illustration, but each program sets its own factor. A profit-and-loss statement from a tax professional can change the math where the program allows it.
4. The result is averaged. The cleaned figure is averaged over the statement window to produce monthly qualifying income.
5. DTI is tested. The maximum DTI is 50%, and it drops to 45% for credit profiles from 600 to 679. A ratio above 45% requires a 680 minimum. The payment used is the interest-only payment calculated on the maximum draw, not on what you plan to borrow.
6. Credit is pulled. The model is a single-bureau score keyed to the primary wage earner. The report must be no more than 90 days old at closing, and rescores are not available.
Step 5 surprises people. You qualify as though you will draw the entire line. A modest balance does not make the DTI test easier.
What Are the Limits by Occupancy?
The ceilings depend on how the property is used, and the investment ceiling is the lowest. This table sets the three occupancy types side by side.
| Occupancy | Max CLTV | Min credit | Max line |
|---|---|---|---|
| Primary residence | 90% (720+ only) | 600 | $500,000 at 90% CLTV; $750,000 at 75% CLTV, 700+ (720 on the 5-year draw, 25-year repayment structure) |
| Second home | 90% (720+ only) | 640 | $500,000 |
| Investment property | 70% | 700 | $500,000 |
The 90% figure appears only at a 720 credit profile and only on lines up to $500,000. A primary residence at 720 and above sits at 75% CLTV once the line goes up to $750,000. Lower credit tiers step the ceiling down. On an investment property, 700 and 720 profiles both top out at 70% CLTV.
One BiggerPockets commenter describes local-bank rental lines of up to 70% LTV in this thread. That is an anecdote about the broader market. On Lendmire’s network, an investment-property line tops out at 70% CLTV. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
A line above $500,000 is for primary residences only. It requires a credit profile of 700 or better (720 on the 5-year draw, 25-year repayment structure), it caps at 75% CLTV, and it needs a full appraisal.
Where the General Rule Breaks
Most explainers stop at the headline numbers. The edge cases are where files get stuck.
LLC title. An LLC, corporation, partnership, or irrevocable, blind, or land trust cannot hold title on this product. Title must be in the individual borrower’s name or an inter vivos revocable living trust. Investors report that LLC ownership is the biggest hurdle with these lines. If your rental is already deeded to an LLC, you need a vesting change or a different product. A DSCR cash-out refinance can hold title in an LLC, subject to lender program eligibility.
Property type. Single-family homes, 2-4 units, PUDs, townhomes, and condominiums are eligible, including non-warrantable condos. A 2-4 unit property needs a 640 minimum score on the 30-year structure. Manufactured homes, co-ops, condotels, log homes, commercial and mixed-use properties, and agricultural zoning are not offered.
Credit history. A bankruptcy needs 4 years of seasoning from discharge or dismissal. Investment files follow a 7-year seasoning path for foreclosure and 4 years for a deed-in-lieu, pre-foreclosure, or short sale. A score under 640 is limited to a single-family residence with a clean 12-month housing history, so it reaches primary residences only.
Exposure. A borrower is limited to three lines. Combined exposure caps at $2,000,000 on the 3-year-draw structure and $750,000 on the 30-year structure. A borrower with more than 15 financed properties is not eligible.
Valuation. Lines at or below $500,000 ordinarily use an automated valuation, though a higher CLTV may require a second valuation. An automated model can lag a fresh renovation, so a borrower who has just rehabbed can request a full appraisal. Every line above $500,000 requires one.
Listed properties. A property listed for sale, or listed within the past 60 days, is ineligible in Indiana, North Carolina, Pennsylvania, Tennessee, Texas, and Washington.
Geography. Placement covers 16 full-service states: AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA, and WA.
When the Better Answer Is a DSCR Loan Instead
A bank statement line reads your deposits. A DSCR loan reads the property. DSCR stands for debt service coverage ratio, which compares the rent to the full monthly obligation of principal, interest, taxes, insurance, and any association dues. The complete DSCR loans guide covers the basics.
The practical differences matter more than the label:
| Factor | Bank statement HELOC | DSCR cash-out |
|---|---|---|
| What is reviewed | Your deposits | The property’s rent |
| Investment leverage | 70% CLTV ceiling | About 75% on standard rentals |
| Title | Individual or revocable trust | LLC may work per program |
| Pricing | Floats, never fixed | Fixed structures available |
| Term | 5-year draw, 25-year repayment | 30-year fixed spine |
On a standard rental, DSCR cash-out tops out around 75% LTV across most of the network, with about 6 months of seasoning as the common expectation. On short-term rental collateral, cash-out is limited to 70%. DSCR loans run up to $3,000,000 on standard programs (smaller balances available through select lenders), and they offer extended 40-year terms and interest-only periods through select lenders. Select lenders also take coverage below 1.00, with leverage and terms adjusted. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
A line makes more sense when you want a small, flexible pool of capital on a property that you hold in your own name. A DSCR cash-out makes more sense when the property sits in an LLC, when you want a fixed structure, or when your deposits do not tell the story of your income.
What Are the Risks?
Payment shock. The line’s interest-only draw becomes a fully amortizing repayment after 5 years. Because pricing floats, a payment can rise or fall even when your balance does not change. The CFPB booklet flags the step-up when the draw ends as the main risk of these plans.
A long amortization on floating pricing is a long exposure. Lower required payments in the repayment phase come with years of uncertainty about the cost.
Wrong tool for a long hold. BiggerPockets commenters caution against using a line as a long-term down payment, and they describe it as a better fit for short-hold plans like BRRRR, where repayment is expected within a year or two. That is a strategy view, not a program rule.
Coverage is not cash flow. If you also own DSCR-financed rentals, remember that a DSCR above 1.00 only compares rent to the housing payment. Repairs, vacancy, management, utilities, and capital expenses sit outside the calculation.
How to Vet Any Provider
Ask these questions of any lender, bank, or broker:
1. Will you write a line on a non-owner-occupied rental, and at what maximum CLTV? 2. What is the draw length, the repayment length, and the total term? 3. Does pricing ever convert to fixed, and what limits it? 4. How many months of statements do you need, and which accounts count? 5. What expense factor applies to business deposits? 6. Can the property be in an LLC, or must it sit in my name or a revocable trust? 7. Does the lender use an automated valuation or a full appraisal? 8. How much must I draw at closing, and what is the minimum draw afterward? 9. Is the line first or second lien? 10. How does the lender treat borrowed funds and large deposits? One investor thread notes that lenders question large deposits and ask for their source.
How the Decision Looks in Practice
Picture an investor with a 700 credit score who owns a duplex free and clear in her own name. She is self-employed, and her deposits are steady. On an investment property, the program caps her at 70% CLTV and a $500,000 line. If she draws most of the line at closing, she carries a floating, interest-only payment for 5 years before amortization begins. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Now picture a second investor whose duplex sits in an LLC. The line is off the table until the vesting changes, so a DSCR cash-out becomes the cleaner route.
A third investor, with a primary residence and a 720 score, may see higher ceilings against that home. He could use the line to fund a down payment elsewhere. The strongest files clear two tests: enough equity and enough documented income. Neither one erases the other’s requirements.
If your deposits and the property’s rent both look strong, Lendmire’s piece on a 10-year interest-only draw period lays out the shorter-runway alternative. It is a different structure with a different payment profile.
Frequently Asked Questions
Is there a bank statement HELOC with a true 30-year fixed term?
Not on this network. The 30-year term is a 5-year interest-only draw plus a 25-year fully amortizing repayment, and pricing floats across both phases. If you want a fixed 30-year structure, a DSCR loan or cash-out refinance is the usual route.
Can I use a bank statement HELOC on a rental property?
Yes, within limits. Investment lines require a 700 minimum credit score, cap at 70% CLTV, and top out at a $500,000 line. Title must be held individually or in a revocable living trust. Eligibility is subject to lender guidelines and full file review.
How much do I have to draw at closing?
At least 75% of the line must be drawn at closing. After that, the minimum draw is $1,000 under the 30-year structure, with Texas at $4,000. You qualify on the interest-only payment calculated on the maximum draw.
Does bank statement mean no income documentation?
No. It means income is documented through deposits instead of tax returns. Lenders still review credit, equity, DTI, and the property. Typical programs ask for 12 to 24 months of statements, and each lender sets its own expense factor.
Can a property held in an LLC qualify?
Not for this product. LLCs, corporations, partnerships, and irrevocable, blind, or land trusts cannot hold title. A property already in an LLC needs a vesting change, or a DSCR cash-out may fit instead, subject to program terms.
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. Reach the team at 828-256-2183.
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.
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Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. BiggerPockets – HELOC on investment property
2. CFPB – What you should know about HELOCs
3. Scotsman Guide – Rev Up the Engine for Non-QM Lending
4. biggerpockets.com: HELOC on Investment Property Can It Be Done
5. BiggerPockets – Thoughts on using a HELOC from a primary home for a first investment property
6. BiggerPockets – Using a HELOC to buy an investment property
This article is part of Lendmire’s bank statement HELOC program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Top Bank Statement HELOC Providers on 1099 Commissions · Top Bank Statement HELOC Providers When You Need Approval Quickly
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.