Banks That Offer a Bank Statement HELOC at 70% Combined Loan-to-Value

The Quick Read: A 70% combined cap is a ceiling on all the debt against the property, not a promise you can borrow 70% of its value. The lenders that write this product depend on your credit, equity, property type and how the title is held.

• On Lendmire’s wholesale network, an investment-property line tops out at 70% combined loan-to-value, with a 700 minimum credit profile and a maximum line of $500,000.
• Your existing first mortgage counts against the 70% before the new line gets any room.
• Lines on investment property run a 5-year interest-only draw followed by a 25-year repayment period, and pricing floats throughout.
• The borrower, not an LLC, must hold title, and rental income does not size the line.
• A DSCR cash-out refinance is the alternative when the property’s rent, rather than your personal profile, should carry the file.

What Does a Bank Statement HELOC Actually Mean?

A bank statement HELOC is a home equity line of credit where the lender reads your deposit history as proof of income. The line itself works like any other HELOC. The CFPB describes a HELOC as an open-end credit line you can borrow against repeatedly, up to a limit, during a set draw period.

The “bank statement” part only changes how income gets documented. Instead of leaning on tax returns, a lender totals your deposits, screens out money that is not income, applies its own expense factor, and averages what remains over the months reviewed. That expense factor is the lender’s call. It is not a fixed industry number.

Bank statements do not replace the rest of the review. Credit, debt-to-income ratio and the property still get checked. Income documented from deposits qualifies under the applicable program, subject to lender guidelines. That is a different method, not a lighter standard.

Do Big Banks Offer It?

Large retail lenders generally build their equity lines around tax returns and pay documents. Statement-based income shows up more often with non-bank lenders and wholesale channels. That is why a search for a bank statement HELOC at a big bank usually dead-ends.

Lendmire is a mortgage broker, not a lender. It places files with select wholesale partners, and the right fit depends on the property, the credit profile, the leverage you need and how you document income. A broker that shops several wholesale lenders can match your scenario to a program, which is the practical answer to the question of which banks offer this. Programs differ lender to lender, and availability for this product covers a narrower set of states than Lendmire’s DSCR footprint, which spans 41 markets including Washington, D.C.

Key Terms Defined

Combined loan-to-value (CLTV): the total of every loan secured by the property, divided by its appraised value. Investopedia’s CLTV definition covers the formula.

Second lien: a loan that sits behind your first mortgage in repayment priority. A line can also take first position in some structures.

Draw period: the stretch when you can borrow from the line, paying interest only on this network’s investment structure.

Expense factor: the percentage a lender subtracts from deposits to estimate what you actually keep as income.

Property-level rental income: rent the property collects. A HELOC does not use it to size the line, unlike a DSCR loan.

How Underwriting Treats It, Step by Step

1. Lender type. The file lands with a lender that writes statement-based income on equity lines. The list of those lenders is short.

2. Income documentation. You supply a set number of months of statements. Lenders commonly look at a year or two, depending on the program. Personal and business accounts are typically kept separate.

3. Deposits become income. The lender screens out transfers and one-time deposits, applies its expense factor and averages the remainder.

4. Credit and debt ratio. On this network, the maximum debt-to-income ratio is 50%. A ratio above 45% requires a 680 minimum, though an investment line already needs 700. The lender reviews your file on the interest-only payment calculated on the maximum draw.

5. Valuation. Lines at or below $500,000 ordinarily run an automated valuation instead of a full appraisal. A borrower may request a full appraisal anyway.

6. CLTV math. The lender adds the balance of any loan that sits ahead of the new line to the full new line limit, then divides by value. That total must sit at or under the cap.

7. Separate reserve proof. Statements that prove income are a different set from statements that prove assets.

What Does 70% Combined Loan-to-Value Mean in Practice?

The maximum line equals the value times the cap, minus what you already owe. Run it in percentages of value. Say your first mortgage equals 50% of the property’s value. A 70% cap leaves room for a line worth 20% of value.

Now say your first mortgage equals 60% of value. Only 10% of value remains. If the first mortgage already sits at 70% or higher, there is no room at all, and the line is not available. The line can also take first position on a property with no existing mortgage, in which case the whole 70% is available to it.

Three details change the picture:

• Undrawn credit counts. The whole credit limit goes into the calculation, so an unused line still uses up CLTV room.
• Dollar caps apply on top. On this network, an investment line cannot exceed $500,000, even when the equity math would allow more.
• Occupancy sets the ceiling. On an investment property, the network’s ceiling is 70% CLTV at a 700-or-higher credit profile. Primary residences and second homes reach higher ceilings. The top 90% tier, for example, exists only at a 720-or-better credit profile. Those higher tiers do not apply to rentals.

A higher figure you see quoted around the market, such as 80%-85% on some lenders’ pages, describes lenders and other occupancy types. It does not describe what is available on a rental through this network.

The Structure Behind the Line

On this network’s investment-property structure, the line carries a 5-year interest-only draw and then a 25-year fully amortizing repayment period. Pricing floats during both stages and never converts to fixed. At least 75% of the line is drawn at closing. Later draws carry a $1,000 minimum on this structure, typically.

Lines can sit in first or second lien position. The first mortgage stays in place if you take a second-lien line, which helps when you like your first loan’s terms.

Lenders can also reduce a credit line when a home’s value falls, and HELOC pricing is typically variable, per the CFPB’s HELOC brochure. Plan for that variability before you commit the proceeds to a purchase or a renovation.

Where the General Rule Breaks

Title in an LLC. Fee simple or leasehold title must sit with you personally or in an inter vivos revocable living trust. LLCs, corporations, partnerships, and irrevocable, blind or land trusts cannot hold title. If your rental is already deeded to an LLC, you need a vesting change, or you need a different product such as a DSCR cash-out refinance, subject to program terms.

Property type. Single-family homes, 2-4 units, PUDs, townhomes and condominiums, including non-warrantable condos, are eligible. Manufactured homes, co-ops, condotels, log homes, commercial, mixed-use and agriculturally zoned properties are not offered.

Credit history. An investment line needs a 700 minimum. A bankruptcy requires 4 years of seasoning from discharge or dismissal. Foreclosure-family events on investment files follow a 7-year path for a foreclosure and 4 years for a deed-in-lieu, pre-foreclosure or short sale.

Exposure. A borrower is limited to three lines, and a borrower with more than 15 financed properties is not eligible.

Regulatory treatment. The CFPB’s ability-to-repay rule does not cover HELOCs. Nolo’s explainer lists HELOCs among the exempt loan types. In practice, a bank statement HELOC is not a non-QM loan in the regulatory sense, because non-QM is a closed-end concept. Lenders set their own standards for these lines, which is why guidelines differ so much from one to the next.

Where a DSCR Cash-Out Refinance Fits Instead

A HELOC reads you: credit, debt-to-income ratio, deposits and equity. A DSCR cash-out refinance reads the property. It replaces your first mortgage and qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.

Across the network, a cash-out on a standard rental tops out around 75% LTV, and a cash-out on a short-term rental tops out at 70%. About 6 months of seasoning is the common expectation. Credit floors vary, and most programs want around 660, with 700-plus unlocking the strongest leverage tiers. Loan sizes run up to $3,000,000 on standard programs (smaller balances available through select lenders).

The tradeoffs run both ways. A DSCR cash-out replaces a first mortgage you may like. A HELOC leaves that mortgage alone but depends on your personal profile and a tighter 70% combined cap.

One caution applies to DSCR math. Clearing 1.00 means rent covers principal, interest, taxes, insurance and any HOA dues. It does not mean the property cash flows. Repairs, vacancy, management and utilities sit outside the ratio. Lendmire’s complete DSCR loans guide explains how the calculation works and which investors it suits.

Who This Fits (and Who Should Look Elsewhere)

A bank statement line tends to suit a self-employed owner whose tax returns show heavy deductions but whose deposits tell a stronger story. It also suits someone who wants a revolving source of down payment or rehab money and keeps a first mortgage worth holding.

It fits poorly in four situations:

• Your first mortgage already consumes most of the 70% cap.
• Your credit sits below 700.
• Title sits in an LLC you cannot restructure.
• You want rental income, not your personal profile, to carry the file.

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. Every figure above is subject to lender guidelines and full file review, and none of it is a commitment to lend.

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. CFPB: What Is a Home Equity Line of Credit HELOC

2. Investopedia: Combined loan-to-value (CLTV)

3. CFPB: HELOC brochure

4. Nolo’s explainer