The Quick Read: On the wholesale network Lendmire brokers through, a bank statement HELOC cannot close in an LLC’s name, because the borrower and title holder must be an individual or a revocable living trust, so an investor with an LLC-owned rental must retitle the property or choose a different loan. The product is built around a person, not an entity. Your LLC can still earn the income that qualifies you, but it cannot own the collateral.
- The investment-property line tops out at 70% CLTV and a $500,000 maximum line, with a 700 minimum credit score.
- Title is checked first. Strong bank statements cannot fix an ineligible vesting.
- An LLC that earns income is a different question from an LLC that owns the property.
- Four routes exist for LLC owners: retitle, borrow on another personal property, use an entity-level commercial line, or use a DSCR cash-out refinance.
- Retitling a mortgaged rental carries real risk, so it needs lender consent and attorney review first.
Key Terms Defined
Bank statement HELOC: a revolving home equity line qualified on deposits in your personal or business bank statements instead of tax returns.
Vesting: the exact legal name on the deed, which decides who can borrow against the property.
CLTV: combined loan-to-value, which adds your first mortgage and the new line together and divides by the property value.
Expense factor: the percentage the underwriter removes from business deposits to estimate what you can actually take home.
DSCR cash-out refinance: a new investor loan that qualifies primarily on the property’s rental income covering its payment, subject to lender guidelines, and can keep an LLC on title.
Personal guarantee: your promise as an individual to repay a loan made to your company.
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.
How Does Underwriting Treat This Product, Step by Step?
Underwriting runs in a fixed order, and title comes before income. A file with excellent deposits still stops if the deed names an LLC. Across the wholesale lenders in Lendmire’s network, the sequence looks like this:
1. Vesting. The lender confirms the deed names you or your revocable trust. This is the first filter.
2. Occupancy and use. The lender confirms the property is an investment property, a second home, or a primary residence, because the ceilings differ.
3. Credit and debt. The lender pulls a credit report and tests your debt-to-income ratio after deposits are counted.
4. Income from statements. The lender converts your deposits into qualifying income.
5. Equity and lien position. The lender adds the first mortgage and the new line, then tests the total against value.
6. Exposure limits. The lender counts your existing lines and financed properties.
The ordering is the point. Investors often spend weeks on bank statement prep before anyone checks the deed. Check the deed first.
How Does the Bank Statement Income Piece Work?
The lender turns twelve to twenty-four months of deposits into a monthly income figure. The underwriter strips out transfers between your own accounts, loan proceeds, refunds, and one-time items. Large or unusual deposits must be sourced. Business deposits then take an expense factor, and the remainder is averaged over the statement window.
Personal statements generally skip the expense factor. The program sets the factor, not the borrower. A CPA-prepared profit-and-loss statement can sometimes support a lower one, depending on the lender.
This is the part that carries over to an LLC owner. If your business, or your LLC’s operating account, generates the deposits, those deposits can support your personal qualification. The LLC earns the income, and you borrow in your own name.
A bank statement HELOC still underwrites you. Credit and debt-to-income remain in play. The network’s maximum DTI is 50%, tested on the interest-only payment calculated on the maximum draw. The bank statements replace tax returns, not the borrower review.
The usual document list includes:
- Twelve to twenty-four consecutive months of statements.
- Proof of self-employment, such as a business license, LLC papers, or a 1099.
- A year-to-date profit-and-loss statement where the program uses one.
- The latest first-mortgage statement on the equity property.
- Insurance declarations and a tax bill for that property.
Why a Bank Statement HELOC Can’t Close in the Name of Your LLC
The restriction is a product rule, not a law. Nothing in federal law bars an LLC-titled property from securing a credit line. The programs in this network are simply built for individual borrowers, and they accept title only in the name of a person or an inter vivos revocable living trust.
These holders cannot take title on the investment line:
- LLCs.
- Corporations.
- Partnerships.
- Irrevocable trusts.
- Blind trusts.
- Land trusts.
A personal guarantee does not change this. Guaranteeing an LLC loan only helps with lenders that underwrite the entity directly. Here, the file underwrites the individual, and an LLC-owned property sits outside it.
Two details catch investors off guard. First, an LLC owned by a trust is generally still treated as an LLC, so a trust wrapper does not solve the problem. Second, a revocable trust is not the same as an LLC. A revocable trust is accepted because you remain the beneficial owner and the borrower.
The investment line itself has a defined shape:
- Maximum line of $500,000, with a 70% CLTV ceiling on an investment property.
- A 700 minimum credit score.
- A 5-year interest-only draw followed by a 25-year repayment period.
- At least 75% of the line drawn at closing.
- A limit of three lines per borrower.
- No eligibility if you own more than 15 financed properties.
Lines at or below $500,000 ordinarily use automated valuation instead of a traditional appraisal, though a higher CLTV may call for a second valuation. Manufactured homes, co-ops, condotels, log homes, commercial, mixed-use, and agricultural properties are not eligible. Everything here is subject to lender guidelines and full file review. This is not a commitment to lend.
Lendmire’s HELOC programs are available in 16 full-service states, which is narrower than its DSCR footprint of 41 markets, including Washington, D.C. Confirm availability for your state before you build a plan around this product.
What Are Your Routes When the LLC Owns the Rental?
You have four routes, and the right one depends on how much you value the LLC’s liability separation versus access to the personal line.
| Route | Who borrows | LLC stays on title? | Main trade-off |
|---|---|---|---|
| Retitle, then borrow | You personally | No | Loses LLC shield; due-on-sale risk |
| Line on another personal property | You personally | Yes | Cash goes in as a member contribution |
| Entity-level commercial line | The LLC, with a guarantee | Yes | Heavier documents; fewer lenders |
| DSCR cash-out refinance | The LLC or you | Yes, per program | One-time loan, not a revolving line |
Route one: retitle to yourself. You deed the rental out of the LLC, then apply. It works mechanically. It also removes the liability separation for that property and can touch your first mortgage, insurance, and title policy. The next section covers why.
Route two: borrow against a different property. If you own a personally titled home or rental with equity, a bank statement HELOC on that property can fund activity in the LLC. You contribute the cash to the LLC, and the payments stay with you personally. This keeps the LLC on its deed and often avoids the due-on-sale question completely.
Route three: an entity-level line. Some community banks and credit unions lend to an LLC as a commercial line, usually with a member guarantee. Expect heavier documentation, commercial terms, and fewer lenders. It sits outside the bank statement HELOC world entirely.
Route four: a DSCR cash-out refinance. This is the cleanest fit for an LLC-owned rental. The loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines, so your personal DTI matters far less. The LLC can stay on title, subject to program terms. Most cash-out files across the network top out around 75% LTV on a standard rental, with about 6 months of seasoning as the common expectation. Loan sizes run up to $3,000,000 on standard programs (smaller balances available through select lenders), well above the $500,000 line cap.
Most DSCR programs want a score near 660, and a 620 floor exists in parts of the network. Coverage of 1.00 is where select programs start, while stronger ratios can improve pricing and leverage. A separate select-lender path takes coverage below 1.00, with leverage and terms adjusted. Clearing 1.00 does not mean the property has positive cash flow, because repairs, vacancy, management, utilities, and capex sit outside the calculation. Lendmire’s complete DSCR loans guide walks through how that ratio is built.
What Does Retitling Really Cost?
Retitling a mortgaged rental can trigger the due-on-sale clause in your existing loan. That clause lets the lender demand full repayment when title transfers. Federal law makes these clauses enforceable under 12 U.S.C. § 1701j-3, which also lists protected transfers.
The protected list is short. It covers situations such as death, certain family transfers, and a transfer into an inter vivos trust where the borrower is and remains a beneficiary. An LLC is not on that list, and Johnson Legal cautions that transfers into an LLC or similar vehicle may trigger the clause. By the same logic, deeding a mortgaged rental out of an LLC to a person is not clearly protected either.
Many lenders do not enforce these clauses without another reason. That is not a safe plan. Treat it as luck, not protection.
The costs beyond the first mortgage include:
- Liability shield. The property no longer sits behind the LLC.
- Insurance. The policy must match the new vesting.
- Title coverage. The title policy may need an endorsement or reissue.
- Timing. A deed recorded just before a HELOC application invites extra scrutiny.
- Reverse order. Deeding into an LLC after the line is open is also risky, because the line was underwritten on you as owner and a lender can freeze or call it when title moves.
A practical rule follows. Get written servicer consent and attorney review before recording any deed in either direction.
When Does the Business-Purpose Question Matter?
Rental loans are generally treated as business-purpose credit, and DSCR loans are designed for non-owner-occupied investment properties. One edge case matters here. Under Regulation Z § 1026.3, credit for a rental is treated as business purpose only if you do not expect to occupy the property for more than 14 days in the coming year. A beach house you use for a month each summer falls outside that treatment. If you use a rental personally, talk with your attorney before you pick the product.
How Do You Move the Money Into the LLC After a Draw?
If you draw on a personal line and use the cash in your LLC, document it. The cleanest approach is a recorded member contribution, supported by a short written note or operating agreement entry. Move the funds from your personal account to the LLC’s account in a single traceable transfer.
Keep personal and business deposits from tangling. The underwriter removes transfers between your own accounts, so a clean, clearly labeled contribution simply drops out of the review without affecting your figures. A contribution that is mixed with ordinary revenue can muddy your income calculation on the next file.
Why Do Files Stall?
From the broker side, a handful of problems account for most stalled files:
- Title surprises. The deed names an LLC, and nobody checked before the statement review began.
- Deposit noise. Transfers, loan proceeds, and refunds shrink the qualifying income once removed.
- Unsourced large deposits. A big deposit with no paper trail gets excluded.
- DTI after deposits. A HELOC counts every financed property against personal DTI, so a portfolio of mortgages can crowd out the line.
- Line stacking. A fourth line, or ownership of more than 15 financed properties, ends eligibility.
- Credit under 700. The investment line starts at a 700 score, so a 680 borrower can qualify elsewhere but not here.
A bank statement HELOC supplies cash only. Buying the next rental still needs a purchase loan. Most files across the network land at 75% to 80% LTV on a purchase, with select high-leverage programs reaching 85% LTV at roughly a 700 score. The strongest files clear two tests: enough equity and enough rental coverage.
A Worked Scenario: One LLC Owner, Three Properties
Picture an investor who owns three rentals. Two sit in a single-member LLC. The third, a duplex bought years ago, is titled in the investor’s own name. The investor runs a contracting business with strong deposits but heavy write-offs on tax returns, so bank statements fit the income picture.
The investor wants cash to fund the next purchase. Here is how each route looks.
The LLC rentals. A bank statement HELOC is off the table without retitling. Retitling risks the LLC’s shield and the first mortgages. Not worth it.
The personal duplex. This is the natural collateral. With a score above 700 and clean deposits, a line on the duplex fits the investment-line parameters, capped at 70% CLTV. The investor draws cash, contributes it to the LLC, and keeps the LLC rentals untouched. The line is also revolving, which suits staged purchases.
A DSCR cash-out on an LLC rental. If the rent covers the payment at a ratio around 1.2x and the property has built equity, a cash-out at up to 75% LTV can pull equity without touching the LLC’s title. It is a one-time loan, not a line, and subject to program terms. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
For this investor, route two is the lighter lift, and route four is the better fit if more cash is needed than the duplex’s equity allows. If the investor already holds several financed properties, the DTI math on the HELOC may tighten, and the DSCR route gets stronger. The decision depends on which constraint binds first: personal debt-to-income or property equity.
Which Path Fits You?
- Your rental is already in your name or revocable trust, the first mortgage is worth keeping, and your DTI is clean after deposits: a bank statement HELOC is a reasonable fit.
- Your rental is in an LLC, and you need more than $500,000 or want to keep personal DTI out of the file: a DSCR cash-out refinance usually fits better.
- You own a personally titled property with equity and want staged access to cash: a line on that property can fund the LLC.
- You prefer an entity-level borrower and can handle commercial documents: ask community banks and credit unions about commercial lines with a member guarantee.
- You use the rental personally for more than 14 days a year: speak with your attorney before choosing any product.
A broker who shops multiple wholesale lenders can match the scenario to the program, which matters because eligibility turns on vesting, credit, leverage, and property type together. The best program for your situation depends on those details. If you are weighing these routes, you can request a quote or call Lendmire at 828-256-2183 to see how the options compare. For an adjacent angle on the DSCR side, see Lendmire’s explanation of how to qualify for a DSCR HELOC closed in the name of your LLC.
This article is general education, not legal or tax advice. Consult a qualified attorney or CPA about your own situation before retitling property, moving funds between entities, or choosing a financing structure.
Frequently Asked Questions
Can an LLC get a bank statement HELOC on this network?
No, not on the investment line. Title must be held by an individual or an inter vivos revocable living trust. LLCs, corporations, partnerships, and irrevocable, blind, or land trusts cannot hold title. Some outside lenders offer entity-level commercial lines, but those are a different product with different documents.
Do business bank statements still count if my LLC earns the income?
Yes, they can. The deposits support your qualification as an individual, and the underwriter applies an expense factor to business deposits. The LLC earns the income, but you borrow personally, and the collateral must be titled in your name or revocable trust.
Does a personal guarantee make my LLC-owned rental eligible?
No. A guarantee only helps with lenders that underwrite the entity directly. This line underwrites the individual, so an LLC-titled property remains outside the file whether or not you guarantee anything.
Can I retitle the rental temporarily to qualify, then deed it back?
It is risky. Moving title can trigger due-on-sale on the existing mortgage, affect insurance and title coverage, and weaken the LLC’s liability protection while title sits in your name. Get written servicer consent and attorney review first.
What if some of my rentals are personal and some are in an LLC?
Use the personally titled property as collateral for the line, within the limit of three lines per borrower and the 15-financed-property cap. Then move the proceeds into the LLC as a documented contribution. LLC-titled rentals can be handled through a DSCR cash-out refinance, subject to program terms.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage serving homeowners and real estate investors in its 16 full-service states. Home equity lines of credit are arranged through wholesale lending channels; Lendmire brokers the line and the lender underwrites each application under its occupancy-based guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
Get Started
Ready to find the right loan for you?
See your offer in seconds. No credit pull, no obligation.
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. Cornell LII, 12 U.S.C. § 1701j-3
This article is part of Lendmire’s bank statement HELOC program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How a Bank Statement HELOC Works With One Year of History · How a Bank Statement HELOC Works for Investors Buying More Rentals · How a Bank Statement HELOC Works to Clear Business Credit Cards
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.