Banks That Offer a Bank Statement HELOC to Fund the Purchase of a New House

The Quick Read: Large retail banks rarely offer this product. It mostly lives in the non-QM and wholesale channel, where a broker can match your file to the programs that write it. The line must be secured by a property you already own, and it covers your down payment and cash to close, not the new loan itself.

• A bank statement HELOC reads income from 12 to 24 months of deposits, then applies an expense factor on business accounts. Only the income proof changes. Everything else works like a standard line.
• On Lendmire’s network, an investment-property line tops out at 70% CLTV with a 700 minimum credit profile. Primary-residence and second-home lines reach 90% CLTV only with a credit profile of 720 or better, and lower credit tiers carry lower ceilings.
• The line cannot sit on the house you are buying, because you do not own it.
• The purchase lender decides whether borrowed down-payment funds are acceptable, so ask before you draw.
• If the new house is a rental, a DSCR loan can handle the purchase while the line handles the equity.

Which Banks Offer a Bank Statement HELOC to Fund a Purchase?

Few of them do. Large retail banks and depository institutions generally underwrite equity lines on tax returns and W-2s. Self-employed owners who write off heavy expenses show low taxable income, so their files stall there even when cash flow is strong.

Bank statement lines sit in the non-QM world. These loans fall outside the standard mortgage box, so lenders can set their own rules for reading income. Lendmire is a mortgage broker, not a lender, and works with a network of wholesale HELOC lenders. The best program for your situation depends on your property type, credit profile, leverage need, and documents.

That is why “which bank” is usually the wrong first question. A broker shops several wholesale programs and matches the scenario to the one whose guidelines fit. Lendmire’s lines are available in 16 full-service states: AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA, and WA. That is narrower than its 41-market DSCR footprint, which includes Washington, D.C.

How the Money Moves, Start to Finish

The sequence matters because each step depends on the one before it. Here is the order that works.

1. Pick the collateral. The line is secured by a property you already own: a primary home, second home, or existing rental. The house you are buying cannot secure it.

2. Choose the documentation path. Typical options are 12 to 24 months of personal or business statements, 1099s, or a CPA-prepared profit-and-loss statement. The file is reviewed on documented income under the applicable program, subject to lender guidelines. This is a documentation alternative, not an absence of documentation.

3. Scrub the deposits. Transfers between your own accounts, loan proceeds, refunds, and one-time items come out. What remains is averaged over the months reviewed.

4. Apply the expense factor and ownership share. Business deposits are cut by an expense factor, and your ownership percentage is applied. Own 60% of the business and the deposits count at 60%.

5. Run the leverage and debt tests. The lender checks combined loan-to-value (CLTV), which is your first mortgage plus the new line, divided by the property’s value. It also checks debt-to-income (DTI), meaning your monthly debts against your income.

6. Value the property and record the lien. Lines at or below $500,000 ordinarily use automated valuation. Anything above $500,000 requires a full appraisal, and you can request one at any size.

7. Draw and deploy. After closing, you draw funds and wire them as down payment, closing costs, or reserves on the new house.

Step seven has a catch. At least 75% of the line is drawn at closing on Lendmire’s network programs. If you only need a modest down payment, a large line means you carry interest on money you did not need. Size the line to the purchase, not to the maximum equity allows.

How Underwriting Reads Your Deposits

The underwriter, not you, chooses the expense factor. A CPA letter documenting lower business expenses can support a lower factor, but the lender decides whether to accept it. Personal statements often carry a lighter factor than business statements, though that varies by lender.

Trend matters as much as the average. Falling deposits can trigger a letter of explanation or a shorter lookback. Two borrowers with the same 24-month average can get different outcomes if one is climbing and the other is sliding.

DTI is the second gate. The maximum is 50% on this network. It drops to 45% for credit profiles from 600 to 679, and anything above 45% requires a 680 minimum. The lender reviews your file on the interest-only payment calculated on the maximum draw, so a line sized larger than you need can still weigh on DTI.

What the Network’s Programs Allow

Leverage depends on how the collateral property is used. Network figures vary by occupancy, and the top tier is narrow, so read the row that matches your property.

Those are ceilings, not promises. Primary-residence lines at 90% CLTV top out at $500,000, and a line above $500,000 on a primary carries a 75% CLTV cap. Each file is reviewed individually, and every figure is subject to lender guidelines and a full file review.

Two draw structures exist on primary residences and second homes. One is a 3-year interest-only draw followed by a 17-year repayment. The other is a 5-year draw followed by a 25-year repayment. Investment lines use the 5-year draw and 25-year repayment structure only. On both programs, pricing floats across the draw and repayment periods and never converts to fixed. The 5-year draw program states a $1,000 minimum for later draws after closing, while the other program does not state one.

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

Where the General Rule Breaks

Borrowed down payments. Some purchase lenders restrict or dislike borrowed funds for the down payment. One BiggerPockets discussion shows investors drawing on one property’s equity for another purchase. The same thread leaves open whether the line and the new mortgage can be combined, since the line is tied to a different property. Treat it as a program-by-program question and confirm with the purchase lender before you draw.

Titling. A DSCR purchase can close in an LLC, subject to lender program eligibility. A HELOC cannot. The line requires title held by you individually or by a revocable living trust. LLCs, corporations, partnerships, and irrevocable, blind, or land trusts cannot hold title. A property already deeded to an LLC needs a vesting change first, or a DSCR cash-out instead.

Renting out the collateral home. If the line sits on your primary home and you plan to move out and rent it, check the occupancy terms first. Investment collateral falls under the stricter 700 minimum and 70% CLTV. Occupancy changes the tier, so tell the lender your plan up front.

Selling the collateral. A sale generally requires paying the line off in full. Plan the exit before you borrow.

Reduced or frozen lines. The CFPB’s HELOC explainer notes you can borrow during the draw period and then enter repayment. It also warns that falling behind could cost you your home. Lenders can also reduce a line if the property’s value falls. The CFPB’s HELOC booklet adds that payments on these lines usually vary with the balance and the pricing.

Exposure limits. A borrower is limited to three lines, and anyone owning more than 15 financed properties is not eligible. Credit history also matters: a bankruptcy needs 4 years of seasoning from discharge or dismissal.

The DSCR Side: What the New Purchase Needs

The line solves the equity problem, and the DSCR loan solves the purchase problem. A debt service coverage ratio loan compares the property’s rent to its full monthly obligation: principal, interest, taxes, insurance, and any HOA dues. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Lendmire’s complete DSCR loans guide walks through the mechanics.

Typical ranges across the network:

• Purchase leverage: most files land at 75% to 80% LTV on a purchase, which means 20% to 25% down. Select programs reach 85% LTV on a purchase with roughly a 700+ score.
• 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.
• Credit: a 620 floor exists in parts of the network, most programs want around 660, and 700+ unlocks the strongest tiers.
• Loan size: up to $3,000,000 on standard programs (smaller balances available through select lenders).
• Reserves: commonly around 6 months of PITIA (principal, interest, taxes, insurance, and association dues), varying by lender, leverage, and loan size.

Clearing 1.00 does not mean positive cash flow. The ratio compares rent to PITIA only. Repairs, vacancy, management, utilities, and capex all sit outside it. Your line payment sits outside it too, so rent covers the DSCR note while you carry the line payment from other income or reserves.

Prepayment penalties on the DSCR loan can make a quick refinance-out costlier. A common step-down structure runs in declining years, but it is not universal. Ask the purchase lender which structure applies. Most lenders also want a down payment that has been documented and sourced, which is why the line should be open and the draw completed before you make offers. Short-term rental purchases follow tighter rules: leverage tops out at 75% on a purchase, with a 640+ score and about 12 months of hosting history expected. Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income.

A Worked Scenario

Run it on an investor who owns a primary home with solid equity and a 720+ credit profile. A good share of her income is self-employed, and business write-offs depress her tax returns. A bank statement line on the primary home reads 24 months of deposits, applies the expense factor, and sets a line size inside the 90% CLTV ceiling that a 720+ profile allows on a primary residence.

She sizes the line to cover the down payment on a rental at 75% LTV on the purchase, plus a share of closing costs. Because at least 75% of the line is drawn at closing, she picks a line close to what she needs. The rental’s rent clears the DSCR floor with room above 1.00, so the purchase lender qualifies the property primarily on its own income, subject to its guidelines. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.

Her risks are layered. The line’s pricing floats, and her payment steps up when the interest-only draw ends. The rental’s rent has to carry the DSCR note and leave room for vacancy and repairs. Her exit is a DSCR cash-out refinance once seasoning is met, usually about 6 months on a cash-out, at up to 75% LTV on a standard rental. That repays the line. Lendmire’s piece Banks That Offer a Bank Statement HELOC to Purchase a Second Home shows the same line applied to a different property type.

Other Ways to Do the Same Job

The line keeps your first mortgage in place and can sit in first or second lien position. A cash-out refinance replaces the whole first loan, which matters if your existing loan is one you want to keep.

Key Terms Defined

Bank statement HELOC: A home equity line that reads income from bank deposits instead of tax returns.

Lookback: The number of months of statements reviewed, typically 12 to 24.

Expense factor: The share of business deposits the lender treats as operating costs rather than income.

CLTV: Your first mortgage plus the new line, divided by the property’s value.

Draw period: The stretch when you can borrow against the line, typically interest-only, before repayment starts.

Lien position: Where your loan sits in line for repayment if the property is sold or foreclosed.

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. Reach the team at 828-256-2183 or request a quote. Every figure here is subject to lender guidelines and full file review, and nothing here is a commitment to lend.

Equity pulled from the house you already own can turn a thin down payment into a closed purchase, as long as the exit plan is built before the first draw.

About Lendmire

Lendmire is a mortgage brokerage (NMLS# 2371349) arranging home equity lines of credit — primary-residence, second-home and investment-property lines — through a wholesale lending network in its 16 full-service states. Eligibility is determined by the lender on each file. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.

References

1. BiggerPockets – Down payment with HELOC

2. CFPB’s HELOC explainer

3. CFPB booklet – What You Should Know About Home Equity Lines of Credit