Can a Condo Owner in Texas or Florida Get a Bank Statement HELOC?

The Quick Read: Usually yes. A condo is an eligible property type for a bank statement home equity line, including a non-warrantable building. Two reviews run side by side: the borrower is reviewed on deposits, credit and equity, and the building is reviewed on its own. The state matters mostly in Texas, where a primary-residence condo is a homestead with its own rules.

• Condos, including non-warrantable ones, are eligible. Co-ops and condotels are not.
• In Texas, a primary-residence condo caps at 80% combined loan-to-value. A rental or second-home condo follows the standard tables.
• In Florida, the building’s reserves, inspections and assessments drive most of the friction.
• Title must sit with the individual borrower or a revocable living trust. An LLC cannot hold title.
• On an investment condo, the ceiling is 70% combined loan-to-value with a 700 minimum score, subject to lender guidelines.

A bank statement line is built for owners whose traditional personal-income documentation understates what they earn. Write-offs shrink reported income, but the deposits tell a different story. The catch is that a condo adds a second file to the first one. Lendmire brokers these lines through select wholesale partners, and the same two-file pattern shows up on nearly every condo request.

Which Condo Owners Qualify for a Bank Statement Line?

Owners of condo units in most buildings qualify, whether the building is warrantable or not. The property type is eligible. What decides the file is occupancy, title, credit tier and the building’s health. Co-ops, condotels, manufactured homes and log homes are not offered.

The ceiling depends on how the unit is used. On a primary residence, the network’s tiers start at a 600 minimum score, but profiles under 640 are limited to single-family homes. Pricing and available terms vary by lender, borrower profile, property type, and full underwriting review. The 90% combined ceiling exists only at a 720-or-better profile on lines up to $500,000. A Texas primary residence never reaches that tier, because it caps at 80% as a homestead. Second homes floor at 640 and also reach 90% only at 720 or better. Investment condos floor at 700 and cap at 70% combined loan-to-value, up to a $500,000 line. These are eligibility ranges, not promises. Each file is reviewed individually, and a few of the figures change by program.

Two wholesale programs sit behind these lines. The first is a higher-leverage program with a 3-year interest-only draw and a 17-year repayment period. The second is a longer-runway program with a 5-year draw and a 25-year repayment period. Investment lines run only the 5-year structure. Pricing floats on both and does not convert to fixed. Details of either program vary by lender, so treat the figures here as a starting range.

How Bank Statement Income Works on a Condo

The lender averages the deposits on 12 to 24 months of statements and then removes what is not income. Market explainers describe the same approach: HousingWire’s bank statement guide describes using 12 to 24 months of statements in place of traditional personal-income documentation or W-2s.

Here is what happens inside the file:

1. Transfers between your own accounts come out.

2. One-time deposits, such as a refund or a loan, come out.

3. The remaining deposits are averaged, usually with an expense factor applied to a business account.

4. The result is tested against your debts, including the condo’s dues.

Condo dues matter more than most borrowers expect. They count in the payment, so a unit with high monthly dues has less room under the debt-to-income cap. That cap is 50% at most, and 45% for profiles from 600 to 679. A ratio above 45% needs a 680 score. The line is qualified on the interest-only payment calculated on the maximum draw.

This is not a no-underwriting product. HousingWire reports that non-QM loans still go through credit review, income analysis, property eligibility and underwriting. Bank statements change how income is documented. They do not skip the review.

What the Building Review Looks At

The lender reviews the association separately from you. Typical items are reserves, special assessments, pending litigation, master insurance and the physical condition of the building. A weak building can stall a strong borrower.

Non-warrantable does not mean ineligible. Many non-warrantable condos fit this program, which is a real difference from agency-style lending. A building with heavy investor concentration, a pending lawsuit or a large special assessment can still be reviewed. Expect the lender to ask more questions, and expect tighter terms where the building is thin.

Co-ops and condotels are not eligible at all. Anyone buying a resort-style unit that runs on a hotel rental program should confirm the unit is a true condominium before spending money on an appraisal.

Valuation is usually light. Lines at or below $500,000 ordinarily run an automated valuation with no traditional appraisal, though a higher combined ratio may require a second valuation. A borrower can also request a full appraisal. Any line above $500,000 requires one, and a line that large is available on primary residences only.

Texas: The Homestead Split

In Texas, how you use the unit decides which rulebook applies. A condo you live in is a homestead. A condo you rent out or use as a second home is not.

For a homestead, Article XVI, section 50(a)(6) of the Texas Constitution governs equity lending. Texas A&M’s Real Estate Research Center notes that these rules are written into the constitution itself and cover cash-out refinances, home equity loans and HELOCs. Texas Attorney General Opinion KP-0183 confirms the section limits the total principal to 80% of the homestead’s fair market value.

The state’s consumer disclosure restates the 80% cap, the one-loan-at-a-time rule and the 12-day minimum before closing. On a primary-residence condo, that means:

• A hard 80% combined cap. The network’s higher tiers never apply to a Texas primary residence.
• A 12-day waiting period before closing.
• One home equity lien at a time. An owner who already has one cannot stack a second.
• 12-month seasoning on the homestead.
• A $4,000 minimum for each draw after closing.

A Texas rental or second-home condo is a non-homestead transaction. On this network, those files follow the standard occupancy tables instead. An investment condo sits under the 70% ceiling, and a second home follows the second-home tiers.

One more Texas point. A unit listed for sale, or listed within the past 60 days, is ineligible in Texas. Texas properties are also limited to 10 acres, which rarely matters for a condo.

Florida: The Building Is the Gate

Florida has no state equity-lending cap or waiting period comparable to Texas’. A Florida condo on this network follows the standard tables for its occupancy. The friction comes from the building and the title.

Florida Statutes section 718.112 requires a structural integrity reserve study for residential buildings of three or more habitable stories, and the study must be updated at least every 10 years. The state’s condominium FAQ adds two points a lender cares about:

• A milestone inspection and a structural reserve study are separate requirements. One does not substitute for the other.
• For budgets adopted on or after December 31, 2024, members may not vote to waive or reduce reserves for the covered structural items.

On a file, that turns into a document request. Expect to supply or pull the reserve study, the milestone inspection summary, the current budget and any notice of a special assessment. An unfinished inspection, an overdue study, underfunded reserves or a large pending assessment can make a building hard to review. That is the most common Florida stall point. Start the association request on day one, because the board controls when those papers arrive.

Florida is one of Lendmire’s 16 full-service states for these lines, as is Texas.

Texas vs. Florida at a Glance

Title: The Blocker Most Owners Miss

Title must be held by you personally or by a revocable living trust. LLCs, corporations, partnerships and irrevocable, blind or land trusts cannot hold title on this line. That is the sharpest structural difference from a DSCR loan.

Picture an owner who deeded a Florida rental condo into an LLC for liability reasons. The bank statement line is off the table until the vesting changes. The other route is a DSCR cash-out refinance, which can be written to an entity, subject to lender program eligibility. Check the deed before you pay for anything.

Bank Statement Line vs. DSCR Cash-Out on a Condo Rental

For a rental condo, the two products solve different problems. A bank statement line sits behind your existing first mortgage, so a low first lien stays in place. A DSCR cash-out replaces the first mortgage and tests rent against the payment instead of your deposits.

The investment line tops out at $500,000 in total. There is no larger investment tier. A DSCR cash-out reaches higher loan sizes. Where the existing first mortgage is low, keeping it often decides the choice. Where the unit is deeded to an LLC, or the borrower wants more than the line allows, the DSCR route usually wins. Lendmire’s complete DSCR loans guide covers how that product works. Clearing a coverage ratio on a DSCR file is not the same as positive cash flow, because repairs, vacancy and management sit outside the calculation.

Common Blockers and Fixes

A borrower can hold up to three lines. Combined exposure caps at $2,000,000 on the higher-leverage program and $750,000 on the longer-runway program.

Prep Checklist

Borrower documents:

• 12 to 24 months of personal or business bank statements
• Government ID and a credit report no more than 90 days old at closing
• Mortgage statements for all financed properties
• Current deed showing vesting

Association documents:

• Current budget and reserve schedule
• Master insurance certificate
• Notice of any special assessment or litigation
• In Florida, the reserve study and milestone inspection summary

Tax treatment can depend on how the funds are used and how the property is held; investors should keep clear records and speak with a qualified tax professional before relying on any deduction.

Key Terms Defined

Combined loan-to-value (CLTV): all liens on the property added together, divided by its value.

Non-warrantable condo: a building that falls outside standard agency project rules but may still be eligible on this line.

Structural integrity reserve study: a Florida study of a building’s major structural items and the reserves needed to fund them.

Homestead: a Texas primary residence protected by the state constitution’s equity-lending limits.

Vesting: how title is held, such as an individual or a revocable living trust.

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 nothing here is a commitment to lend.

About Lendmire

Lendmire is a mortgage brokerage (NMLS# 2371349) arranging home equity lines of credit — primary-residence, second-home and investment-property lines — through a wholesale lending network in its 16 full-service states. Eligibility is determined by the lender on each file. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.

Investors who want the broader program framework can review how DSCR loans work.

References

1. HousingWire — How Bank Statement Loans Work

2. HousingWire — Non-QM Is a Fit, Not a Fallout

3. Texas A&M Real Estate Research Center — What to Know About Home Equity Loans in Texas

4. Texas Attorney General Opinion KP-0183

5. Florida DBPR Condominiums FAQ