Bank Statement HELOC Lenders in a High-Rise With a Commercial Floor

The Quick Read: A commercial floor in the tower does not by itself bar a bank statement HELOC, because the lender reviews the collateral, not the building’s street-level tenants. A residential condo unit is an eligible property type, including non-warrantable condos. A commercial unit or a mixed-use parcel is not offered.

• The collateral decides eligibility: a residential unit can qualify for review, a commercial or mixed-use property cannot.
• Income and building are two separate reviews, and each can fail on its own.
• Bank statements replace only the income proof. Credit, DTI, equity and the property are still reviewed.
• On an investment property, the network ceiling is 70% CLTV with a 700 minimum credit profile and a line up to $500,000.
• Which lender fits depends on the file, so a broker that shops several wholesale lenders matters more than any single name.

A condo owner who writes off heavy expenses often shows low taxable income. Deposits tell a different story. That is the case for a bank statement line. The tower with retail or offices on the lower floors is the question mark. This piece explains how both reviews work, where the commercial floor matters, and where it does not.

Lendmire is a mortgage broker that works with a network of select wholesale HELOC lenders. It is not a lender. These lines are available only in Lendmire’s 16 full-service states, which is narrower than its 41-market DSCR footprint. Everything below is subject to lender guidelines and a full file review, and none of it is a commitment to lend.

Key Terms Defined

Bank statement HELOC: a home equity line where 12 to 24 months of deposits stand in for tax-return income.

Commercial floor: space in the same building used for retail, restaurants, offices or similar business uses rather than housing.

Warrantable condo: a project that meets agency eligibility rules, which include a cap on commercial space.

Non-warrantable condo: a project that fails one or more of those agency tests. It can still be eligible for a line in this network.

Mixed-use property: a single property with both residential and commercial use. It is a different thing from a residential unit in a mixed building.

CLTV: combined loan-to-value, meaning all liens on the property divided by its value.

Does a Commercial Floor Make the Unit Ineligible?

No. The test is what you are pledging. If the collateral is a residential condo unit, the commercial floor below becomes a building-review item, not an automatic stop. If the collateral is the commercial unit, a live-work parcel, or any commercial or mixed-use property, it falls outside these programs. Condotels and co-ops are also not offered.

Picture two owners in the same tower. One owns a 14th-floor apartment. The other owns a ground-floor retail bay. The first can be reviewed for a line. The second cannot, no matter how strong the deposits look.

“Mixed-use building” and “mixed-use property” are not the same thing. The building has mixed uses. Your collateral is one unit, and that unit is residential.

The Two Separate Reviews

The income review asks whether you can carry the line. The building review asks whether the project is acceptable collateral. A file can pass one and fail the other.

How Underwriting Treats It, Step by Step

1. Classify the collateral. Residential unit in a condo project, or commercial or mixed-use property. The second type is not offered.

2. Collect the project facts. The HOA questionnaire, the budget, the commercial share of the building and the project’s status. A complete questionnaire keeps the building review moving, so request it before the application.

3. Check title and vesting. The property must be held by the individual borrower or an inter vivos revocable living trust. LLCs, corporations, partnerships and irrevocable, blind or land trusts cannot hold title. That is the sharpest structural difference from a DSCR loan. A unit already deeded to an LLC needs a vesting change, or a DSCR cash-out instead.

4. Document income from deposits. The package is typically 12 to 24 months of personal or business statements, with non-income deposits removed. A year-to-date profit-and-loss statement is sometimes requested.

5. Add the property file. ID, the current mortgage statement, proof of insurance and the tax bill. Lines at or below $500,000 ordinarily run an automated valuation, though a borrower may request a full appraisal.

6. Run the rest of the underwriting. Credit, DTI, equity and property are all reviewed. DTI tops out at 50%, with 45% for credit profiles from 600 to 679, and the line is qualified on the interest-only payment calculated on the maximum draw.

How Deposits Become Income

Bank statements replace the income proof only. They do not replace anything else.

Bank statement products are non-QM, meaning they sit outside the standard Qualified Mortgage safe harbor. The CFPB’s Ability-to-Repay compliance guide still expects a reasonable, good-faith determination of repayment ability using reasonably reliable third-party records. That is why deposits get analyzed rather than totaled. HousingWire’s non-QM guide notes the same point: bank statement income analysis is not simply adding up deposits, and an expense factor may apply. Transfers between your own accounts, loan proceeds and one-off deposits typically come out first.

Clean accounts help. A borrower who runs rent, business receipts and personal spending through one account gives the analyst more to sort.

Where the Commercial Floor Actually Matters

The commercial share is a building-review question. The agency yardstick is a useful screen, even though agency rules do not govern these lines. Fannie Mae’s Selling Guide limits commercial or mixed-use space to 35% of a project or the building it sits in, counting space above and below grade, and it counts all of it even when residential and commercial owners sit under separate associations. A tower above that line is likely non-warrantable by agency standards.

Here is the practical point. Non-warrantable is not a dead end in this network. Non-warrantable condos are an accepted property type across the select lenders. The door is wider than a conventional lender’s, but the review still happens.

Non-warrantable status also has causes unrelated to commercial space. Delinquent assessments, critical repairs and litigation are separate flags. A tower can fail on one and pass the commercial test, or the reverse.

“Mixed-use, so non-warrantable” is a label, not a measurement. The share has to come from documents.

What Kinds of Commercial Space Raise Questions?

Ground-floor retail and restaurants are the common cases. Office floors and hotel-style operations are less common. Parking levels may raise questions too, though commercial parking is typically treated differently from other commercial space. A condotel is a different matter: it is not offered at all.

Short-term rental concentration inside the tower is a related building item. If the project runs as a hotel in practice, expect more questions in the building review.

The Investor Decision on an Investment Unit

For a unit held as a rental, the ceiling is 70% CLTV, with a 700 minimum credit profile and a maximum line of $500,000. Investment lines run the 5-year interest-only draw with a 25-year repayment structure only. At least 75% of the line is drawn at closing, and pricing floats rather than converting to fixed.

Primary-residence and second-home lines carry higher ceilings, reaching 90% CLTV only at a 720-or-better credit profile. Those tiers do not apply to a rental. Market surveys may show other figures for equity lines, but they describe the wider market, not this network.

A few other limits apply. A borrower can hold up to three lines, and an owner of more than 15 financed properties is not eligible. Both are reviewed at the file level.

Think it through before applying. The 70% ceiling counts every lien, so a unit with a large first mortgage may leave little room. Run the numbers on value first. If equity is thin, the commercial floor is not your problem.

When the Line Is the Wrong Tool

A line suits a borrower who wants flexible draws. It suits fewer borrowers when income documentation is the obstacle or title sits in an LLC.

If DTI is the issue, a DSCR cash-out takes personal income out of the test. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines, and it is built for non-owner-occupied property. The complete DSCR loans guide covers how that product works. Lendmire’s piece How to Qualify for a Bank Statement HELOC on a High-Rise Condo With a Commercial Floor goes deeper on the building-side checklist.

DSCR compares rent to the full monthly obligation. Clearing 1.00 is not the same as positive cash flow, since repairs, vacancy and management sit outside the calculation.

What to Ask Before You Apply

Which lender fits depends on the file: the property type, credit profile, leverage need and documentation. A broker that shops several wholesale lenders can match the file to a program before an application is made. Naming one lender as best for everyone would be wrong.

Before applying, gather this:

• The HOA questionnaire and current budget.
• The commercial share of the building, in writing.
• Confirmation of how title is held.
• 12 to 24 months of statements, with non-income deposits marked.
• Credit profile and current lien balances.

Common Misreads

“Commercial space makes the tower non-warrantable.” Only if it passes the agency threshold. A condo above shops is not automatically non-warrantable.

“Non-warrantable means no financing.” That reflects conventional financing. In this network, non-warrantable condos are an accepted property type.

“Bank statement means no documentation.” It is alternative documentation. Income qualifies under the applicable program, subject to lender guidelines.

“Non-QM means subprime.” Non-QM means outside standard agency guidelines. It is not a credit-quality label.

A stale 25% figure. Some pages quote a 25% commercial limit. The current published Selling Guide limit for the commercial share is 35%.

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. Call 828-256-2183 or request a quote.

About Lendmire

As a mortgage broker (NMLS# 2371349), Lendmire helps homeowners and real estate investors in its 16 full-service states open home equity lines of credit arranged through wholesale lenders. Lendmire is never the lender; line amounts, ceilings and terms are set by the lender under its guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.

References

1. CFPB ATR/QM Small Entity Compliance Guide

2. HousingWire non-QM guide

3. Fannie Mae Selling Guide B4-2.1-03