Can You Get a Bank Statement HELOC for LLC-Titled Borrowers and How Much You Can Borrow?

The Quick Read: Not directly: the lenders in Lendmire’s wholesale network will not place a home equity line on a property titled to an LLC, because only an individual or a revocable living trust can hold title, though your business deposits can still prove income once the property is in your own name. The bank statement method is not the obstacle. Title is checked before income ever comes up.

• An LLC, corporation, partnership, or irrevocable or land trust cannot hold title on these lines.
• Your LLC’s deposits can count as income, but the borrower on the application must match the owner on the deed.
• Three workable paths exist: vest the property back into your name or a revocable trust, borrow against a different property you own personally, or use a DSCR cash-out refinance.
• Availability for this product is limited to 16 states, which is narrower than the DSCR footprint.

Why Does LLC Title Stop the Line?

The line is a personal product, so the person or revocable trust on the loan must own the property. Lenders in the network read the deed first. If an LLC appears on it, the file stops before anyone looks at a single deposit.

This is a program rule, not a legal bar. Nothing prevents an LLC-owned property from securing a loan in general. These lenders simply write the line to individuals and revocable living trusts only.

Many investors assume a personal guarantee solves it. It does not on a standalone personal line. A guarantee helps with entity-level commercial lenders, but here the borrower named on the application has to match the owner named on the deed.

Some commercial lenders, local banks, and credit unions do write lines to entities. Those are outside what Lendmire’s network offers, and their terms differ from lender to lender. Treat any such option as a separate search with its own rules.

Two Different LLCs, Two Different Answers

Your situation may involve an LLC in two different roles, and they behave differently.

The first is the LLC that earns the income. Perhaps it runs a business, a property management company, or a contracting operation.

The second is the LLC that owns the property. This one blocks the line. If the rental is deeded to an LLC, your income is irrelevant until the title question is solved.

So an investor can have strong deposits and still be turned away. The reverse also holds: a modest income file on a personally titled property can move forward. Check the deed before you gather a single statement.

How Does the Bank Statement Method Work Once Title Is Clean?

The method changes how your income is proven. It does not change anything else about the review.

1. Title and vesting check. The deed must show you or your revocable trust.

2. Choose the statement window. Trade press describes the typical setup as 12 to 24 months of personal or business bank statements used to judge ability to repay. The 12-month window is a program choice, and some programs ask for 24.

3. Build the income figure. Eligible deposits are totaled. Transfers between your own accounts and other non-income credits are screened out. On business accounts, an expense factor is applied, and a profit-and-loss statement or a third-party tax professional’s expense statement can serve as an alternative, as Scotsman Guide explains for non-QM files generally. Large deposits get explained in writing.

4. Review everything else normally. Credit, equity, debt-to-income, and the property itself are underwritten the usual way.

A typical document set includes the statements, proof of self-employment such as a business license, LLC papers, or a 1099, a photo ID, a current mortgage statement, and proof of insurance. The loan is reviewed on documented income under the applicable program, subject to lender guidelines. It is not a light-documentation file.

What decides the outcome, in order: vesting, then the credit floor, then CLTV, then debt-to-income on the deposit-derived income. Debt-to-income is capped at 50% in the program, and a ratio above 45% requires a credit profile of at least 680. The 45% limit applies to profiles from 600 to 679, and only primary-residence lines can reach the 600 to 639 portion of that range, since second homes start at 640 and investment lines at 700.

How Much Can You Borrow on an Investment Property?

Two limits apply at once: a percentage of value and a dollar cap. Whichever is lower wins.

On an investment property, the network ceiling is 70% CLTV, and it applies at both the 700 and 720-plus credit tiers. There is no higher tier for investment property. The maximum line is $500,000.

CLTV counts your existing first mortgage plus the new line, divided by the property’s value. That is why your first mortgage matters as much as your equity.

Run the numbers on a few percentage scenarios:

• First mortgage at 50% of value. The line can use up to about 20% of value, since the two together cannot pass 70%.
• First mortgage at 30% of value. Room for the line is about 40% of value. On a higher-value property, the $500,000 cap may bind before the percentage does.
• Property owned free and clear. The line can reach up to 70% of value, again capped at $500,000.

For contrast, primary residences and second homes follow different tables. A primary residence or second home reaches 90% CLTV only at a 720-or-better credit profile. None of that carries over to a rental.

A few more limits shape the size. A borrower can hold up to three lines, and a borrower with more than 15 financed properties is not eligible. Lines at or below $500,000 ordinarily use an automated valuation rather than a traditional appraisal, though a borrower may request a full appraisal. All of it is subject to lender guidelines and full file review.

On structure, investment lines run a 5-year draw period followed by a 25-year repayment period. At least 75% of the line is drawn at closing. That makes this a tool for deploying capital, not a standby line you keep open for emergencies.

Does a bank statement income figure raise the line? No. It proves you can repay. The size still comes from equity, credit tier, the first mortgage, and the caps above.

Three Ways to Proceed When the Rental Is in an LLC

Vest the property back into your name or a revocable trust. This removes the title block. It also gives up the liability separation the LLC provided, and it may affect your insurance. Talk to counsel and your insurance agent before moving a deed.

Borrow against a different property you hold personally. If you own another rental, a primary residence, or a second home in your own name, the line can sit on that property instead. The occupancy-based ceilings apply to whichever property secures it.

Use a DSCR cash-out refinance. This is a separate product underwritten on the property, not on you. LLC-titled borrowers can use it, subject to lender program eligibility for entity-held property. The complete DSCR loans guide walks through how that product works.

Two timing points also matter. In a BRRRR plan (buy, rehab, rent, refinance, repeat), the line must sit on a property you already own, never on the one being bought. And a personal line can fund an LLC-owned deal. You can move the cash into the LLC as a documented contribution or member loan, but the debt stays personal.

What About Re-Titling After the Line Closes?

Do not close the line and then deed the property into your LLC. Most existing mortgages carry a due-on-sale clause, which lets the lender demand payment if ownership transfers. The federal Garn-St Germain Act protects some transfers, but it does not exempt a transfer of mortgaged real property into an LLC.

A transfer into a revocable trust is treated differently and can be protected when certain conditions are met. That is why a revocable trust works on this product and an LLC does not.

Sequence matters. If the LLC structure matters to you, decide before you borrow, not after.

HELOC or DSCR Cash-Out: Which Fits?

The two products answer different questions. One is underwritten on you. The other is underwritten on the property.

The line fits when the rental is already in your name, your first mortgage is worth keeping, and you want staged access to cash. A DSCR cash-out fits when the property sits in an LLC, you need more than $500,000, or your personal debt-to-income is tight.

A few DSCR details are worth knowing. Standard-rental cash-out tops out around 75% LTV, and short-term-rental collateral is held to 70%. About 6 months of seasoning is the common expectation. Most programs want a score near 660, with 700-plus unlocking the strongest leverage. Reserves vary by lender and loan size and are commonly around 6 months of PITIA.

Coverage is where DSCR gets misread. DSCR compares rent to PITIA only. Clearing 1.00 does not mean the property produces positive cash flow, because repairs, vacancy, management, utilities, and capex sit outside the calculation. A coverage of 1.00 is where many select programs start, and a separate select-lender path takes coverage below 1.00 with leverage and terms adjusted. Your HELOC and DSCR options depend on which test your file passes more easily.

Common Mistakes With LLC-Titled Rentals

• Treating bank statements as a lighter file. They change the income method only. Credit, equity, debt-to-income, and property review remain.
• Assuming LLC deposits qualify the LLC to borrow. The borrower must be the person or revocable trust that owns the property.
• Counting on a personal guarantee to fix title. It does not fix title on this lane.
• Expecting an LLC to qualify as the borrower. LLCs, corporations, and partnerships cannot hold title on this program, so a property deeded to one needs a vesting change or a DSCR cash-out instead.
• Deeding into an LLC after funding. It can trigger the due-on-sale clause, as covered above.
• Treating 12 months of statements as a law. It is a program choice.

Key Terms Defined

HELOC: A home equity line of credit, a revolving credit line secured by a property you already own.

CLTV: Combined loan-to-value, which is your first mortgage plus the new line, divided by the property’s value.

Vesting: How title is held on the deed, such as in your name, a revocable trust, or an LLC.

DTI: Debt-to-income ratio, which compares your monthly debts to your documented monthly income.

DSCR: Debt service coverage ratio, which divides a property’s rent by its full monthly obligation.

PITIA: Principal, interest, taxes, insurance, and association dues, the full monthly housing obligation DSCR measures against.

Next Steps

Start with the deed. If it shows you or a revocable trust, gather 12 to 24 months of statements and your business papers. If it shows an LLC, compare the three paths above and decide which trade-off you can live with.

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. Lendmire is a mortgage broker that works with a network of wholesale HELOC lenders, and it arranges DSCR financing across 41 markets, including Washington, D.C. You can reach the team at 828-256-2183.

This article is general information, not legal or tax advice. Consult a qualified attorney or CPA about your own title, entity, and financing situation before you act.

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.

References

1. Scotsman Guide, “Helping borrowers fit the boxes by getting hands-on with non-QM”

2. Scotsman Guide, “Rev Up the Engine for Non-QM Lending”

3. Chicagoland Lawyer, “Transfer Property to an LLC”