The Quick Read: No combined cap exists, so your total is the sum of what each lender will lend against its own collateral. A bank statement HELOC on an investment property typically stops at 70% combined loan-to-value, while hard money is sized on project cost and after-repair value. Each loan is sized on its own rules, and the total is tested against the property or properties that secure it.
- Same property: every lien counts toward one combined loan-to-value (CLTV) limit, so the stack is tight.
- Different properties: each loan faces its own test, which is how most investors use the two together.
- HELOC on an investment property: typically up to 70% CLTV, a 700 minimum score, and a $500,000 maximum line across Lendmire’s network.
- Hard money: typically up to 93% of project cost at the top experience tier, capped at 75% of after-repair value. Terms and leverage vary by lender, property, and experience.
- Cash-flow reality: two payments and a short loan term mean the exit plan matters as much as the borrowing limit.
Why There Is No Single Combined Number
Each lender looks only at its own loan and its own collateral. A HELOC lender cares about the lien on the property it holds. A hard money lender cares about the deal it is funding. Neither one adds the other’s loan into a master ceiling.
What this loan actually costs to carry.
Hard money is sized against the project and priced by time. Enter the deal and see how much the program will lend, the cash required at closing, the carry while you hold it, and what is left at the exit.
Leverage tiers on the current program: 85% with fewer than 2, 90% with 2 or more, 93% with 5 or more completed projects — every tier capped at 75% of after-repair value. Loan amounts up to $5,000,000, larger by exception; terms of 6 to 18 months, interest-only, no prepayment penalty. The rehab portion funds in draws against completed work, not at closing.
Program parameters shown update from Lendmire’s centralized guideline source. Rate, points, and months are editable assumptions, not quoted terms.
Cost cap sets the loan · positive spread
Illustrative estimate only — not a quote, Loan Estimate, approval, or commitment to lend. Rate, points, and months are editable assumptions. Hard money is business-purpose financing for real estate investors, not a consumer mortgage. Leverage on the current program tops out at 93% of project cost for investors with a documented track record, capped at 75% of after-repair value, with rehab funding up to 100% of the documented budget released in draws; actual terms vary by lender, borrower experience, property, and exit. Lendmire is a mortgage broker, not a lender.
That is why a search for one total keeps coming up empty. The honest answer is a formula, not a figure. Size the HELOC. Size the hard money loan. Then check whether the two share a property.
The share-a-property question decides almost everything. If they do not, you have two separate limits and a lot of room. If they do, you have one limit and very little room.
How a Bank Statement HELOC Is Sized
A HELOC’s maximum line equals the CLTV ceiling times the property value, minus the liens already on it. Investopedia defines CLTV as the total of all loans secured by a property, compared with the property’s value.
Across Lendmire’s wholesale network, an investment-property HELOC typically tops out at 70% CLTV. The score floor is typically 700, and the line can reach $500,000. Programs vary and every file is underwritten individually, subject to lender guidelines.
Two details trip up investors. First, lenders usually count the full line limit in the CLTV test, not just the amount you draw. Second, the collateral must be held personally or in a revocable living trust. A rental titled in an LLC generally cannot carry the line on this network.
Some states also bar a property that is listed for sale, or was listed in the last 60 days. Indiana, North Carolina, Pennsylvania, Tennessee, Texas, and Washington are among them.
What “Bank Statement” Changes
It changes how income is documented and nothing else. A self-employed borrower typically supplies 12 to 24 months of personal or business statements, and the lender builds income from deposits. Scotsman Guide’s non-QM coverage describes this setup. It also gives a 50% expense factor on business accounts as an example. Each lender sets its own factor, and an accountant’s letter can change it.
The borrower is reviewed on documented income under the applicable program, subject to lender guidelines. Credit, equity, debt-to-income, and the property are still reviewed in full.
How Hard Money Is Sized
Hard money is asset-based. The lender looks at the property, the plan, and the exit before it looks at your income. Leverage depends on the project type and on how many projects you have finished. Everything below varies by lender, property, and experience.
| Project type | Typical leverage |
|---|---|
| Fix-and-flip, 5+ completed projects | 93% of project cost |
| Fix-and-flip, 2+ completed projects | 90% of project cost |
| Fix-and-flip, fewer than 2 | 85% of project cost |
| Bridge purchase, no rehab | Up to 80% of purchase price |
| Refinance (cash-out or rate/term) | Up to 65% of value |
Every flip tier is also capped at 75% of after-repair value (ARV). Rehab money can fund up to 100% of the rehab budget, released in draws as work is completed. That is a rehab figure, not a purchase loan-to-value.
Other typical terms: loan amounts up to $5,000,000, a 620 minimum score with added conditions below 660, and 6-to-18-month interest-only terms. Collateral is non-owner-occupied residential property of 1-4 units, and ground-up construction can run to 10 units. There is no true 100% purchase program. A high cost-based tier combined with rehab draws can look like one, but the rehab money is a separate budget figure.
Here is a quick way to see which cap controls on a flip. Because every tier is capped at 75% of ARV, the cost percentage and the ARV cap trade places depending on the spread between cost and value. At the 90% tier, 90% of cost equals 75% of ARV when ARV is exactly 1.2 times project cost. Below that ratio the ARV cap controls, and above it the cost percentage controls. Thin spreads between cost and ARV shrink the loan.
How the Two Loans Fit Together
The structure you choose determines the limit that applies.
| Structure | Which limit governs | Practical effect |
|---|---|---|
| HELOC on your home or a personal rental, hard money on a different property | Each loan tests its own collateral | Most room; the usual investor setup |
| Both on the same property | One shared CLTV ceiling | Very little room |
| HELOC drawn first, then hard money funded sequentially | Each at its own closing | Works if the exit repays both |
The same-property case is nearly always a dead end, and the math shows why. A hard money bridge purchase can run up to 80% of purchase price. That figure alone is above a 70% HELOC ceiling, so a HELOC added on the same property would have no room. A hard money refinance at up to 65% of value leaves only about 5 points of value before the shared 70% limit is reached.
A HELOC lender may also restrict additional liens, so the order of operations matters. Open the line before the hard money lender records its lien, and read the lien terms on the existing first mortgage.
A Worked Example
Treat this as a modeled scenario, not market data. Consider an investor with a personally titled rental. The first mortgage sits at 40% of the rental’s value.
At a 70% CLTV ceiling, the HELOC could reach up to 30% of that value, and never above the $500,000 line maximum. Suppose the investor draws the line and uses it as the cost-share on a flip bought on a different property.
On that flip, the hard money lender funds 90% of project cost at the 2+ project tier, subject to the 75% ARV cap. The remaining 10% of cost is the investor’s equity. In this scenario, the HELOC draw covers that 10% and the cash reserves the lender wants to see.
With the HELOC covering the investor’s share and the reserves, the combined borrowing reaches the full project cost or slightly more. That works only while the 75% ARV cap does not reduce the hard money loan. This is the part to stress-test. The investor carries the hard money payment, the HELOC payment, and holding costs. All of it depends on a successful sale or refinance.
Some hard money lenders dislike a borrowed down payment and ask where the cash came from. Plan to document the source. Moving HELOC cash through a personal account also shows up in your bank statements. If you plan to use those statements for a later loan, keep the transfers clean and labeled.
The Risks Most Investors Underestimate
Stacking leverage on yourself. Each loan is reasonable on its own. Together they leave almost no cushion if a rehab runs over or a sale slips.
Cross-risk. If the hard money loan matures without an exit, you may be repaying it from the HELOC, which is secured by your home or personal rental. A problem on one property can become a problem on another.
The payment lands in your DTI. A new line adds a second payment that your debt ratios must absorb on any later full-documentation loan.
Two sets of closing costs. Each loan has its own fees. They compete with the rehab budget and the projected profit.
Narrow sourcing. NerdWallet notes that investment-property HELOCs draw from a smaller lender pool, carry stricter requirements, and may need multiple appraisals. Most large retail lenders do not write this product, so a broker typically sources it. With a hard money term of only 6 to 18 months, that slower sourcing leaves a short runway to line up both loans and the exit.
A tempting cheaper-looking option is to skip hard money and draw the HELOC alone. That can make sense for a small cosmetic rehab. It stops working when the project needs more than the line provides or when the property is held in an LLC.
The Exit: Where Both Loans Get Repaid
Hard money is short-term by design. A common take-out is a sale, or a refinance into long-term rental financing once the property is stabilized. Lendmire brokers that DSCR path as well.
A DSCR cash-out refinance tops out around 75% LTV on standard rentals and 70% on short-term-rental collateral. Whatever the exit loan is, it must repay the hard money loan and, if you used it, the HELOC draw. Add both balances before you assume the refinance clears. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
DSCR lender review works differently from the HELOC. It compares rent to the full monthly obligation of principal, interest, taxes, insurance, and any HOA dues. Select programs start at a 1.00 coverage ratio, and stronger ratios open better terms. Clearing 1.00 is not the same as positive cash flow, because repairs, vacancy, management, and utilities sit outside the calculation. Lendmire’s complete DSCR loans guide covers the mechanics in more depth.
| Factor | Bank statement HELOC | Hard money | DSCR cash-out refinance |
|---|---|---|---|
| Reviewed on | Deposit-based income, credit, equity | Property, plan, exit | Rent versus payment |
| Collateral | Personal or trust-held property | Non-owner-occupied 1-4 units | Rental property |
| Typical leverage | Up to 70% CLTV | Up to 93% of cost | Up to 75% LTV on standard rentals |
| Best use | Short-term liquidity | Purchase and rehab | Long-term hold or take-out |
For a side-by-side look at the equity-line route versus a cash-out, see Lendmire’s comparison of a bank statement HELOC versus a bank statement cash-out refinance paired with hard money.
Which Investor Profile Fits
The two-loan stack suits an experienced operator with a finished project record, equity in a personally titled property, and a reliable exit. It also suits a self-employed investor whose tax returns understate cash flow, which is the case bank statement documentation addresses.
It fits poorly for a first-time investor with thin equity, a rental held in an LLC, or a project with a long or uncertain exit. In those cases a lower-leverage hard money tier alone, or a smaller project, is usually the sounder move. If the plan only works when every assumption lands, the borrowing limit is not the real problem.
DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage. A HELOC drawn against your own home that funds a rental turns on the purpose of the loan. Credit for non-owner-occupied rental property is generally treated as business-purpose under federal rules, and a compliance reviewer makes that call on a given file. This is not legal advice.
Key Terms Defined
CLTV (combined loan-to-value): the total of every loan secured by one property, divided by its value.
ARV (after-repair value): the estimated value of a property once the planned rehab is finished.
Loan-to-cost: the loan amount as a share of the purchase price plus rehab budget.
Bank statement income: income calculated from deposits over 12 to 24 months of statements rather than from tax returns.
Draw: a release of rehab funds after completed work, or a withdrawal against a HELOC.
Lien position: the order in which lenders are repaid from the property if it is sold or foreclosed.
What to Gather Before You Ask
- 12 to 24 months of personal or business bank statements, plus any accountant letter.
- Title documents showing who holds each property and in what name.
- Current mortgage statements and an estimate of value for the HELOC collateral.
- A project budget, scope of work, and ARV estimate for the hard money deal.
- A record of completed projects, since experience sets the leverage tier.
- A written exit plan showing how both balances get repaid.
If you are buying, rehabbing, or refinancing an investment property and want to see how the numbers work, Lendmire can help you compare options based on the project, the exit plan, leverage, and your goals. Lendmire arranges these loans as a broker through its wholesale network, and program availability varies by location and product. Nothing here is a commitment to lend.
Frequently Asked Questions
Can HELOC funds be used as a down payment on a hard money deal?
Often yes, though lender policy varies. Some hard money lenders accept a HELOC draw as a source of funds. Others want documentation of where the cash came from or prefer unborrowed equity. Ask early, and keep the transfers traceable in your accounts.
Does a hard money loan count toward my HELOC’s CLTV?
Only if it is secured by the same property. A hard money lien on the HELOC collateral counts toward the shared limit. A hard money loan on a different property does not touch it.
Can I use an LLC-owned rental as HELOC collateral?
Generally not on Lendmire’s network. The line needs personally titled property or a revocable living trust. Hard money, by contrast, can often lend to an entity, though this varies by lender.
What happens if the hard money loan matures before I exit?
You would need an extension, a refinance, or a sale. If you cannot repay, you may end up covering the balance from other sources, including the HELOC. That cross-risk is why the exit plan comes before the borrowing math.
Can I qualify for the HELOC if my tax returns show low income?
Possibly. A bank statement program builds income from deposits instead of tax returns, subject to lender guidelines. Credit, equity, DTI, and the property are still underwritten in full, and a typical score floor is 700.
About Lendmire
Lendmire, NMLS# 2371349, is a non-QM mortgage broker serving real estate investors in 41 markets, including Washington, D.C., through DSCR investor loan programs. Qualification is generally reviewed around the subject property’s rental income, not the borrower’s W-2 history — a practical fit for LLC-titled portfolios and self-employed investors. All scenarios remain subject to lender review and program guidelines. Two consecutive Scotsman Guide Top Mortgage Workplace recognitions (2025, 2026).
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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. Investopedia, Combined Loan-to-Value (CLTV)
2. Scotsman Guide, Rev Up the Engine for Non-QM Lending
3. NerdWallet, HELOC on an investment property
4. Consumer Financial Protection Bureau, 12 CFR 1026.3 Exempt Transactions
This article is part of Lendmire’s hard money loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Best Hard Money Cash-Out Refinance Program to Pay Off a HELOC on a Rental Property · DSCR HELOC Requirements With One Year of History · DSCR HELOC Requirements for Lincoln County MO Investors
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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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.