Banks That Offer a Bank Statement HELOC With a 30-Year Term

The Quick Read: A bank statement HELOC with a 30-year term usually means a 5-year interest-only draw followed by a 25-year repayment period, and it is arranged mostly through non-QM wholesale lenders rather than large retail banks, so the useful question is which program fits your property, credit profile, and combined leverage, not which bank name to call. The 30 years is the total life of the line, not a 30-year amortizing loan. The income side is reviewed on documented income under the applicable program, subject to lender guidelines.

• A 3-year draw plus a 17-year repayment adds up to only 20 years.
• Investment-property lines run the 5-year draw structure only, at up to 70% CLTV and a 700 minimum credit profile.
• Pricing floats through both phases and never converts to fixed.
• Title must sit with an individual or a revocable living trust. An LLC cannot hold it.
• Lendmire arranges these lines in 16 states, a narrower footprint than its DSCR loan platform.

Do Banks Actually Offer This?

Large retail banks tend not to offer this. Alternative-documentation lines sit in the non-QM channel, where brokers place them with wholesale lenders that accept deposit history in place of tax-return income. Retail banks and credit unions that do write equity lines tend to want traditional income documents.

Rental property narrows the field further. NerdWallet notes that HELOCs on investment properties exist but come with fewer lenders and stricter terms than lines on a primary home.

That is why a list of bank names does not help much. The lender that writes a statement-based line on your file depends on your occupancy, credit tier, leverage, and how the property is titled. A broker that shops several wholesale lenders can match those facts to a program. A single bank’s menu cannot.

The table below sorts the channels by what they usually document.

What Does “30-Year Term” Mean on a HELOC?

It means the draw period and the repayment period added together. The CFPB describes a HELOC as an open-end line you can borrow against during a draw period, followed by a repayment period. Its example draw period is 10 years, with repayment often running 10 or 20 years.

NerdWallet puts the typical draw at 10 years and repayment at up to 20. Experian gives a 5 to 10 year draw and a 20-year repayment, and warns that some lines carry a balloon payment that makes the full balance due when the draw ends. A label that says 30 years can hide that.

On Lendmire’s wholesale network, there are two structures:

The 5-year-draw structure is the one that reaches 30 years. It is also the only structure available on investment properties. Tennessee shortens both: 3-year draw with 12-year repayment, and 5-year draw with 10-year repayment. A Tennessee file therefore does not reach 30 years.

Two more mechanics shape the term. At least 75% of the line is drawn at closing on both structures. And pricing floats across the draw and the repayment period without ever converting to fixed. Interest-only describes the payment type during the draw. It says nothing about whether pricing is fixed.

Key Terms Defined

HELOC: A revolving line of credit secured by real estate, usually with a draw phase and a repayment phase.

Draw period: The phase when you can borrow against the line and payments are interest-only.

Repayment period: The phase when borrowing stops and each payment includes principal and interest.

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

Bank statement documentation: An income path where the lender reviews deposit history instead of tax-return income.

Vesting: The legal form in which the owner holds title, such as an individual, a trust, or an LLC.

How Underwriting Treats a Bank Statement HELOC

Underwriting reviews the whole file. The documentation path changes how income is measured. It does not relax credit, property, or title rules. Here is the sequence a file moves through.

1. Choose the structure. Occupancy decides which draw structures are open. Investment lines run the 5-year draw only.

2. Document income. The borrower is reviewed on documented income under the applicable program, subject to lender guidelines. For self-employed borrowers, that means the lender reviews deposit history.

3. Test debt-to-income. The ratio tops out at 50%, with a lower 45% limit for credit profiles from 600 to 679. Because second homes and investment lines start at higher credit floors, that lower limit mainly touches primary residences. The lender qualifies the borrower on the interest-only payment calculated on the maximum draw, not on the amount drawn.

4. Pull credit. The score model is a single-bureau score keyed to the primary wage earner. The report can be no more than 90 days old at closing, and there are no rescores. The 5-year-draw structure also requires two tradelines seasoned 12 months, or one seasoned 24.

5. Check history. A bankruptcy needs 4 years of seasoning from discharge or dismissal. Foreclosure history splits by program on primary residences and second homes. One program seasons a foreclosure at 7 years and a deed-in-lieu, pre-foreclosure, or short sale at 4. The other declines the history regardless of age.

6. Value the property. Lines at or below $500,000 ordinarily use an automated valuation, though a higher CLTV may require a secondary valuation. A full appraisal is required above $500,000. A borrower may request one at any size.

7. Clear title. The property must be held by the individual or a revocable living trust.

The ability-to-repay and qualified-mortgage section of Regulation Z, 12 CFR 1026.43, excludes HELOCs from its scope. No federal rule prescribes how a lender documents HELOC income. That is why a bank statement path exists, and why guidelines differ from lender to lender.

Leverage and Line Size by Occupancy

Leverage depends on occupancy, so no single ceiling applies. Every figure below is subject to lender guidelines and full file review.

On an investment property, the ceiling is 70% CLTV at 700 or better, up to a $500,000 line, with a 700 minimum credit profile. Nothing sits above that tier.

On a second home, the ceiling reaches 90% CLTV only at 720 or better, up to $500,000. A 700 profile is capped at 85%, and a 640 profile at 75%. The credit floor is 640.

On a primary residence, the ceiling also reaches 90% CLTV only at 720 or better, up to $500,000. A 700 profile reaches 85% up to $500,000, and a 620 profile is capped at 70% up to $400,000. The credit floor is 600. Lines run to $750,000, but a line above $500,000 is primary-residence only. It requires a 700 profile or better (720 on the 5-year-draw structure), caps at 75% CLTV, and needs a full appraisal.

Two borrowers with the same 720 profile can land in different tiers. One borrowing against a rental is held to 70% CLTV, while one borrowing against a primary residence or second home can reach 90%. The score is identical, and the ceiling differs by occupancy.

Smaller rules also apply. Subsequent draws after closing carry a $1,000 minimum on the 5-year-draw structure. A borrower can hold three lines at most. A borrower with more than 15 financed properties is not eligible.

Eligible property types include single-family homes, 2-4 units, PUDs, townhomes, and condominiums, including non-warrantable ones. Manufactured homes, co-ops, condotels, log homes, and commercial, mixed-use, or agricultural-zoned property are not offered.

Where the General Rule Breaks

LLC-titled rentals. The sharpest limit on this product is vesting. LLCs, corporations, partnerships, and irrevocable, blind, or land trusts cannot hold title on a HELOC. A rental already deeded to an LLC needs a vesting change first, or a different product. A DSCR cash-out is the usual alternative, subject to program terms on LLC-titled borrowers.

Balloon-style endings. Experian’s warning about balloon payments is the reason to read the repayment clause before anything else. A 30-year label tells you nothing about what happens when the draw closes.

Payment step-up. The CFPB cautions that monthly payments are often significantly higher once repayment begins. On a 5-year draw, the interest-only phase ends and principal enters the payment. Variable pricing can move the payment even during the draw. Bankrate frames the end of the draw as the real test of a HELOC, so the stress test belongs at that step-up, not at the opening payment.

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.

Texas primaries. A Texas primary residence is a homestead and caps at 80% combined loan-to-value. Texas second homes and investment properties follow the standard tables.

Geography. Lendmire arranges these lines in 16 full-service states: AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA, and WA. A file outside that list needs a different product.

Statement HELOC or DSCR Cash-Out?

These two products answer different questions. A bank statement line tests the borrower’s documented income. A DSCR loan tests the property’s rent against its payment. The first is revolving and floats. The second is a closed-end loan with a fixed structure.

DSCR cash-out ceilings differ by collateral. About 75% LTV applies to standard rentals, and 70% applies to short-term-rental collateral. Coverage of 1.00 is where select programs start. A separate select-lender path takes coverage below 1.00, with leverage and terms adjusted. Clearing 1.00 is not the same as positive cash flow, since repairs, vacancy, management, and capex sit outside the calculation. Lendmire’s complete DSCR loans guide walks through how that math is built. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.

An investor who holds rentals in an LLC, wants a lump sum, and has strong rent but uneven personal income usually fits the DSCR side. An investor who holds a rental personally, wants revolving access, and has strong deposits but thin tax-return income fits the HELOC side. For a look at the draw phase in isolation, there is also a separate piece Banks That Offer a Bank Statement HELOC With a 10-Year Interest-Only Draw Period.

The DSCR side runs across 41 markets, including Washington, D.C., which is a much wider footprint than the HELOC states above.

Questions to Settle Before Applying

A short list keeps the file clean:

• Which occupancy applies, and what ceiling goes with it?
• Is the title held personally or in a revocable trust?
• Is the property single-family, 2-4 units, a PUD, or a condo?
• What draw and repayment structure applies, and does the total reach 30 years?
• How much of the line is drawn at closing, and can the borrower carry that?
• Does the borrower hold more than three lines or more than 15 financed properties?

The best program for your situation depends on those answers. 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. You can reach the team at 828-256-2183.

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. NerdWallet – HELOC explainer

2. CFPB – What is a HELOC

3. Experian – What is a draw period on a HELOC

4. eCFR – 12 CFR 1026.43

5. Bankrate – When a HELOC draw period ends