Banks That Offer a Bank Statement HELOC When the Home Has a PACE Assessment

The Quick Read: A bank statement HELOC on a home with a PACE assessment is rarely a straightforward approval. The PACE assessment sits ahead of any new lien, most lenders want it paid off before the line funds, and bank statements only prove your income. No reliable public list of banks covers this niche, so this page sorts lenders by type and shows the steps that clear the assessment.

• PACE is repaid through the property tax bill, and it ranks ahead of a new equity line.
• Bank statement documentation proves self-employed income. It does not change lien position.
• The usual path is a payoff or release first, then the line.
• On an investment property, the network ceiling is 70% CLTV with a 700 minimum credit profile.
• If the numbers fall short, a DSCR cash-out refinance can retire PACE at closing.

Key Terms Defined

PACE assessment: A financing repaid as a line on your annual property tax bill, not as a mortgage payment.

HELOC: A home equity line of credit, a revolving line secured by the property.

CLTV: Combined loan-to-value, which is all liens on the property added together and divided by its value.

Lien priority: The order in which claims get paid if the property is sold or foreclosed.

Payoff statement: A written balance from the PACE administrator, showing what it takes to clear the assessment.

Bank statement documentation: A way for self-employed borrowers to show income through 12 to 24 months of deposits instead of tax returns, subject to lender guidelines.

Banks That Offer a Bank Statement HELOC: Which Lender Types Write It?

Bank statement equity lines are not universal. They are more common at portfolio lenders, credit unions, specialty HELOC lenders, and non-QM mortgage companies than at big banks and large retail lenders. Add a PACE assessment and the field narrows again.

Big banks tend to price for tax-return income and clean title. Smaller lenders that hold loans on their own books have more room to review a self-employed file. None of them can reorder liens, though. Whichever type you approach, the PACE balance gets the same scrutiny.

Lendmire is a mortgage broker, not a lender. It shops a wholesale network of HELOC lenders and matches the scenario to a program. The best fit depends on your property, credit profile, equity and income method. A broker saves you from asking each lender the same questions one at a time.

One limit matters early. The HELOC programs Lendmire places are available only in 16 full-service states, which is narrower than its 41-market DSCR footprint, Washington, D.C. included.

Why Does PACE Rank Ahead of a New Line?

PACE ranks ahead because it is a tax assessment, not a mortgage. The assessment collects with property taxes, and the law in participating areas gives it a superior position. A new HELOC lands behind it whether the line is a first lien or a second lien.

Palm Beach County’s PACE FAQ explains that owners can finance up to 100% of an eligible project. They repay it as a voluntary assessment on the annual tax bill. In Florida, the assessment has higher priority than most other liens, including a mortgage. The same FAQ warns that unpaid PACE is treated like unpaid taxes. It can trigger foreclosure even when the mortgage payments are current.

The Consumer Financial Services Review notes that in many jurisdictions the repayment obligation produces a tax lien that takes priority over existing and future liens.

Lenders treat all solar-related debt differently, and the instruments are not interchangeable.

A UCC-3 termination clears a UCC-1 filing. It does nothing for a PACE assessment, because PACE is not a UCC filing.

How Underwriting Treats It, Step by Step

Underwriting checks lien position first and income second. A strong income file cannot fix a priming lien. Here is the sequence most lenders follow.

1. Discovery. PACE shows on the tax bill and county tax records, not in the mortgage lien records. A title report and the current tax bill are the usual checks. A lender that only searches mortgage liens can miss it.

2. Lien-position test. A lender writing a second lien expects only the disclosed first mortgage ahead of it. PACE sits ahead of both. The usual fix is payoff before closing. A servicer subordination is rare.

3. Combined loan-to-value. An unpaid PACE balance eats into the equity a lender will count. It also raises the annual tax outlay.

4. Income documentation. A self-employed borrower supplies 12 to 24 months of personal or business statements, and the lender computes income from deposits. Business-account deposits are often reduced by an expense factor.

5. Decision. Credit, CLTV, occupancy and debt-to-income decide the rest.

The network’s debt-to-income limit is 50% at most, and 45% for credit profiles from 600 to 679. Lenders qualify the borrower on the interest-only payment calculated on the maximum draw. Which lenders accept the bank statement method for a given line depends on the program, so confirm that before you apply.

A Worked Equity Example

The example below uses percentages of property value instead of dollars. Treat every input as a modeled assumption, not market data. It shows how a PACE balance changes the room under the ceiling on an investment property, where the network ceiling is 70% CLTV.

Paying off PACE from the new line is possible when the numbers allow it. It also uses part of the draw. The network requires at least 75% of the line to be drawn at closing, so the payoff and the draw must fit together. Investment lines run a 5-year interest-only draw followed by a 25-year repayment period. They are capped at $500,000 and need a 700 or better credit profile, subject to lender guidelines and full file review.

Primary residences and second homes follow different tables. A primary residence reaches 90% CLTV, and only at a 720 or better credit profile. This article does not apply those tiers to rentals.

Where the Rule Breaks

The general rule is payoff first. These edge cases bend it.

• Secondary-lien PACE. Some programs are structured behind the mortgage. The Federal Housing Finance Agency notes this in a footnote to its position on super-priority liens. Priority varies by state law and program, so read the program documents and the title report.
• Partial payoff. Paying part of the balance generally does not remove the priority lien, so lenders are likely to ask for payoff in full.
• Residential versus commercial. A federal ability-to-repay rule for residential PACE has been finalized, as ALTA reports. It adds duties for the PACE originator. It does not change lien priority or reach assessments already on a property. Commercial PACE sits outside it and carries its own tax-like priority.
• Title in an LLC. The network’s equity lines require title in an individual’s name or a revocable living trust. LLCs and corporations cannot hold title. A rental deeded to an LLC needs a vesting change, or a DSCR cash-out instead.
• Ineligible properties. The network does not offer these lines on manufactured homes, co-ops, condotels, or log homes.
• Borrower exposure. A borrower is limited to three lines, and owning more than 15 financed properties makes the borrower ineligible.

Whether to use the line to retire a small PACE balance or restructure around a larger one can be close in some files. A larger balance may push the file toward a bigger restructuring.

Pay Off, Wait, or Use the Line?

Your choice depends on the size of the PACE balance against your equity. Anaheim’s PACE FAQ says some lenders and buyers require payoff when a homeowner refinances or sells. Ask your lender early whether it will require payoff on your file.

• Pay it off first. If you have cash or another source, request a payoff statement, pay the balance, and record the release. You then apply with a clean title.
• Use the line to retire it. If the equity covers both the payoff and your goal, the new line can clear PACE at closing. Check that the CLTV works after the payoff.
• Wait. A small balance close to its end may not be worth restructuring around. Keep in mind that the assessment follows the property to a new owner on sale.

If the equity is thin, or the title sits in an LLC, a DSCR cash-out refinance is a separate path. On standard rentals it tops out around 75% LTV, with about 6 months of seasoning as the common expectation. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.

DSCR compares rent to the full monthly obligation, including taxes. A PACE line on the tax bill raises that obligation and lowers coverage. Clearing 1.00 also does not mean positive cash flow, since repairs, vacancy, and management sit outside the calculation. Select programs start at 1.00, and a separate select-lender path takes coverage below 1.00 with leverage and terms adjusted.

Lendmire’s complete DSCR loans guide covers those programs in more detail. Compare the two routes on lien position, not on documentation type.

What to Gather Before You Apply

Two files matter: one for the deposits and one for the PACE assessment.

• 12 to 24 months of personal or business bank statements.
• A title report that shows what sits ahead of the line.
• The current property tax bill, with the PACE line marked.
• A payoff statement from the PACE administrator.
• The release after payoff, once it has been recorded.
• The property’s deed, to confirm whether title is in your name, a revocable trust, or an LLC.

Check the tax bill for a PACE line before you buy a rental with solar panels, and ask which financing structure the panels carry. For more on the income method itself, see Lendmire’s page on the bank statement HELOC.

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 on the Lendmire site. Qualification is subject to lender guidelines. This is not a commitment to lend.

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. Palm Beach County, PACE Frequently Asked Questions

2. The Consumer Financial Services Review

3. Federal Housing Finance Agency, Statement on Certain Super-Priority Liens

4. ALTA

5. City of Anaheim, PACE FAQ