The Quick Read: It depends on three limits, and the lowest one wins: on an investment property, the line typically stops at 70% combined loan-to-value after your first mortgage, a $500,000 cap, and whatever your documented deposits and debt load support, so bank statements change how income is proven but never the equity math.
- The equity limit is the property’s value times 70%, minus the balance on any existing first mortgage.
- The dollar cap is $500,000 on an investment line, with a $25,000 minimum, so on a high-value property with modest debt the cap binds before the equity does.
- A 700 credit score is the entry point on an investment line, and a higher score does not buy more leverage.
- The full credit limit counts toward your leverage and your debt-to-income ratio, even if you never draw it.
- Hard money is sized on the project instead, and a DSCR cash-out refinance is sized on rent coverage, so the right choice depends on the deal. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
These are figures from Lendmire’s wholesale network. They are typical ranges, they vary by borrower, property, and lender, and nothing here is a commitment to lend.
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.
How Is the Limit Calculated?
The limit is the property’s value times 70%, minus what you still owe on the first mortgage. Whatever is left is the most the line can be, before the $500,000 cap is applied. The test uses combined debt, so your first mortgage and the full line limit both count toward the 70%.
Run it as percentages. Say the first mortgage on a rental sits at 45% of its value. The line can then use the remaining 25 points of value. Say the first mortgage sits at 55% of value. The room shrinks to 15 points. If existing liens already exceed 70% of value, the room is zero before you ask.
A free-and-clear rental is the opposite case. With no first mortgage, the line can use the full 70%. The $500,000 cap still applies, so a high-value property with little debt hits the dollar ceiling first. A modest-value property with a heavy first mortgage hits the equity ceiling first.
Many investors assume they can borrow against all of their equity. They cannot. A 70% ceiling leaves 30% of the value untouched, by design.
The federal guidance on home equity is more cautious still. The federal consumer-finance regulator’s guide to using home equity notes that lenders typically want 10% to 20% of a home’s value left as equity. That framing is aimed at owner-occupied homes, so treat it as a general reference point rather than an investment-property rule.
What Does the Bank Statement Change?
A bank statement HELOC changes only how income is documented. It is a standard home equity line, except that deposits replace tax returns as the proof of income. It is not a no-documentation product, because credit, equity, debt load, and the property are all still underwritten.
The usual non-QM pattern, as Scotsman Guide describes it, is 12 to 24 months of personal or business bank statements. A profit-and-loss statement prepared by a third-party tax professional can also be used. Lendmire’s network follows the same pattern: separated personal and business deposits, an explanation for large one-time deposits, ID, the current mortgage statement, and proof of insurance.
Business deposits take an expense factor, which the lender or program sets, not the borrower. Personal statements generally skip that step. Some programs accept an accountant-prepared expense statement in place of a flat factor. The 50% figure you may see quoted is an example from trade press, not a federal rule.
The income you prove then feeds the debt-to-income test, which runs up to 50% on the investment lines in the network. A reasonable rule of thumb is deposits, then the expense factor, then debt-to-income, then combined loan-to-value. The first three decide whether you qualify at all. The last one decides how big the line can be.
Qualification here rests on documented income under the applicable program, subject to lender guidelines. Underwriters still review the statements closely for large unexplained deposits.
Two more mechanics matter for investors. The network uses a single-bureau credit score keyed to the primary wage earner. On investment lines, valuation is commonly automated, which is how lines under the $500,000 cap often close without a traditional appraisal. You can still request a full appraisal. A typical structure is a 5-year draw period followed by a 25-year repayment period.
Which Title and Property Rules Cap the Line?
Title is the sharpest difference from a DSCR loan. An LLC cannot hold title on a bank statement investment HELOC in this network. An individual or a revocable living trust can. A DSCR loan can be placed with an LLC borrower, subject to lender program eligibility, which is why many portfolio investors end up there.
Occupancy sets the ceiling. The leverage allowed follows the occupancy of the property securing the line, and a rental gets a lower ceiling than an owner-occupied home. An investor who uses their own home as collateral for a rental purchase may qualify for more leverage, but that puts the home at risk.
Property type matters too. Eligible properties include single-family homes, 2-4 units, PUDs, townhomes, and condominiums, including non-warrantable condos. Below a 700 score, an investment line is not available in the network.
Value can also move against you. The CFPB’s explainer on home equity lines warns that if the property’s value falls significantly, the lender might not allow additional credit under the plan. A rental behaves the same way. The same page notes that falling behind on the loan could cost you the home, and on a rental line the property itself is the collateral.
How Does Hard Money Size a Loan Differently?
Hard money is sized on the project, not on your income or your existing equity. It is a business-purpose loan secured by non-owner-occupied residential property, 1-4 units, with ground-up construction allowed up to 10 units. Underwriting stays asset-based: the property, the plan, and the exit.
Leverage is quoted as loan-to-cost, and it is tiered by experience. On fix-and-flip deals, the tiers run 93% of project cost at five or more completed projects, 90% of project cost at two or more, and 85% of project cost below that. Every tier is capped at 75% of after-repair value. A bridge purchase without rehab goes up to 80% of purchase price. A cash-out or rate-and-term refinance goes up to 65% of value.
Rehab money can fund up to 100% of the rehab budget, paid in draws against completed work. That is a rehab-budget figure, not a purchase loan-to-value. There is no true 100% purchase program, so a headline promising one is describing a blend of purchase financing and rehab draws, not a single zero-down loan.
Other parameters, all varying by lender, property, and experience:
- Loan amounts run up to $5,000,000, with larger loans by exception.
- Terms run 6 to 18 months, interest-only, with no prepayment penalty.
- The credit minimum is 620, with additional conditions below 660. First-time investors qualify at the lower leverage tiers.
- Hard money costs more than a home equity line. Compare the full cost over your realistic holding period.
Because terms top out at 18 months, a long hold needs an exit. One option is to refinance into long-term DSCR financing once the property is stabilized, a path Lendmire brokers.
How Do the Three Options Compare?
| Factor | Bank Statement HELOC | Hard Money | DSCR Cash-Out |
|---|---|---|---|
| Sized on | Equity, credit, debt-to-income | Project cost and value | Rent against payment |
| Typical cap | 70% CLTV, $500,000 | Tiered loan-to-cost | 75% LTV, standard rentals |
| Title | Individual or revocable trust | LLC possible | LLC possible |
| Term | 5-year draw, 25-year repay | 6-18 months | Long-term fixed |
| Best fit | Staged work, existing equity | Rehab and bridge deals | Stabilized rentals |
A DSCR cash-out refinance tops out around 75% on a standard rental across most of the network, and about 6 months of seasoning is the common expectation. Coverage is the rent compared with principal, interest, taxes, and insurance. Clearing 1.00 is where many select programs start, and stronger ratios open better leverage. For a fuller explanation, see Lendmire’s complete DSCR loans guide.
One caution: DSCR compares rent to the monthly payment only. Clearing 1.00 is not the same as positive cash flow, because repairs, vacancy, management, and utilities sit outside the calculation.
Which Fits Which Investor?
The answer turns on the project, the title, and how much equity you already hold.
Light, staged work on a rental you already own. A line suits an individual owner with a 700-plus score and a first mortgage well below 70% of value. You draw as work is paid for, and you carry cost only on what you borrow, so the unused portion of the limit does not accrue interest.
A heavy rehab or a vacant property. Hard money usually fits better. The loan is sized on cost and after-repair value, so your existing equity matters less, and the lender looks at the plan and the exit.
An LLC-held portfolio. The line is not available on that title. Hard money or a DSCR cash-out, subject to lender program eligibility, is the more practical path.
A stabilized rental with strong rent. A DSCR cash-out refinance may fit better, because rent coverage drives the sizing and the term runs long. A line wins only when you want a revolving balance and your debt-to-income can absorb it.
A borrower with a 620-to-690 score. The investment line is closed below 700, while hard money starts at 620 with added conditions below 660. That gap alone can decide the product.
Investors argue about whether hard money is only for weak credit or tight deadlines. That framing misses the point. Hard money fits when the deal needs leverage on cost, not on equity you already own.
Can You Stack Both?
Yes, and investors do it, but the two products interact. A line can supply the equity portion of a hard money purchase, and a hard money lender may review where that cash came from.
Here is the catch. The full line limit counts toward your debt-to-income ratio even if you have drawn nothing. A large unused line can therefore weaken a later refinance or purchase file. Investors who plan to refinance into long-term financing should size the line with that file in mind.
The economics matter as well. A line carries its own cost, and borrowed equity is still borrowed money. Stack only when the project margin leaves room for both costs.
What Mistakes Do Investors Make Here?
- They treat 70% as a share of equity. It is a share of value, and your first mortgage comes out of it.
- They assume a higher score lifts the cap. In this network it does not.
- They count only the drawn balance. Lenders count the full limit.
- They assume an LLC can hold title. On this product it cannot.
- They plan a project around a line that a value drop could freeze or reduce.
- They skip statement preparation. Mixed personal and business deposits with large unexplained transfers slow underwriting and can shrink qualifying income.
Non-QM lending is also not the fringe market it once was. Scotsman Guide reports that many non-QM transactions are DSCR loans, which qualify on the property’s rental income instead of personal income.
Key Terms Defined
HELOC: A revolving line of credit secured by a property, which you can draw on repeatedly up to a set limit during the draw period.
Combined loan-to-value (CLTV): Your first mortgage plus the new line, divided by the property’s value.
Draw period: The stretch of time when you can borrow against the line before repayment begins.
Bank statement income: Income proven by deposits in personal or business accounts, usually after an expense factor is applied.
Loan-to-cost: The share of total project cost, purchase plus rehab, that a hard money lender will fund.
DSCR: The debt service coverage ratio, which compares a property’s rent with its monthly principal, interest, taxes, and insurance.
Where Should You Start?
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 is a mortgage broker that works with a network of wholesale lenders across 41 markets, including Washington, D.C. It does not lend directly.
Prepare these items before the conversation:
1. 12 to 24 months of personal or business statements, with deposits separated and large transfers explained. 2. Your current first-mortgage statement and proof of insurance. 3. A rough budget, a scope of work, and an exit plan if the project is a rehab. 4. A clear picture of how the property is titled.
Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income.
Frequently Asked Questions
Does a higher credit score let me borrow more on an investment line?
No. In this network, 700 is the entry point, and a higher score does not raise the 70% ceiling. A score of 720 or better matters for other occupancy types, but on an investment property the leverage cap stays the same. Below 700, an investment line is not available.
Does the unused part of the line count against me?
Yes. The full credit limit counts toward your combined leverage and your debt-to-income ratio, even if you never draw it. An investor planning a later purchase or refinance should factor that in before opening a large line.
Can my LLC hold the property for a bank statement HELOC?
Not on this product. An individual or a revocable living trust can hold title. If the property sits in an LLC, a DSCR cash-out refinance or hard money loan is usually the path, subject to lender program eligibility.
Is hard money the better choice when I need more than the line allows?
Often, when the project needs leverage on cost. Hard money is sized on loan-to-cost, up to 93% of project cost for experienced investors and capped at 75% of after-repair value. The tradeoff is a short term, and an exit to long-term financing is part of the plan.
Does a bank statement HELOC mean no income documentation?
No. It is reviewed on documented income under the applicable program, with deposits standing in for tax returns. Expect 12 to 24 months of statements, an expense factor on business deposits, and full review of credit, equity, and the property.
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. CFPB: Using home equity to meet financial needs
2. Scotsman Guide: Rev Up the Engine for Non-QM Lending
3. CFPB Ask CFPB: What is a HELOC
4. Scotsman Guide: Which Groups Are Driving Non-QM Lending
This article is part of Lendmire’s hard money loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How Much Can You Borrow on a DSCR HELOC as a Co-Owner Who Is on the Deed? · How Much Can You Borrow on a DSCR HELOC to Pay Off a Hard Money Loan? · How Much Can You Borrow on a DSCR HELOC Past Conventional Loan Limits?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.