How to Get a Warehouse Line of Credit

Key Takeaways

1. A warehouse line of credit is purpose-built for mortgage originators. It provides short-term capital to fund loans at closing, with the line repaid once those loans are sold into the secondary market, keeping your pipeline moving without tying up your own balance sheet.
2. The application process centers on your track record and operational infrastructure. Lenders want to see origination volume, secondary market relationships, and financial stability, not just a credit score.
3. Customers Bank offers warehouse facilities from $5 million to $300 million. Our team is structured to work at deal speed, with experienced lenders who understand the mechanics of mortgage origination.
4. Getting approved is more straightforward than you might expect. If you have a solid origination track record, defined secondary market outlets and clean financials, you’re likely a strong candidate.

Mortgage originators who rely on their own capital to fund loans at closing are leaving efficiency on the table. A warehouse line of credit is how high-volume originators stay liquid, close deals quickly and scale their business without a proportional increase in equity. If you’re evaluating whether a warehouse line is the right move or you’re ready to apply and want to know what to expect, here’s a practical guide to how it works and what lenders are looking for.

What Is a Warehouse Line of Credit?

A warehouse line of credit is a short-term, revolving credit facility extended to mortgage originators. When you originate a loan and are ready to close, you draw on the warehouse line to fund it. Once that loan is sold to an investor on the secondary market or securitized, the proceeds repay the draw and your available credit resets. It’s a financing structure built around the natural cycle of mortgage origination: originate, fund, sell, repeat. Rather than using your own capital at every closing, you’re using the warehouse line as a bridge between origination and sale. Customers Bank is a nationally recognized warehouse lender offering credit facilities from $5 million to $300 million. Our team works with originators across deal types and production volumes, and we’re structured to move quickly when timing matters.

Who Warehouse Lines Are Designed For

Warehouse lines of credit are used by mortgage originators: banks, independent mortgage companies and other lending institutions that originate commercial real estate or residential mortgage loans and sell them into the secondary market. They’re not a general-purpose business credit line. If you’re a mortgage originator with an established pipeline, defined secondary market outlets and the operational infrastructure to manage loan-level reporting, a warehouse line is likely a fit worth exploring.

How to get a Warehouse Line of Credit

Step 1: Define your facility needs.

Before approaching a lender, get clear on the size of facility you need based on your monthly origination volume and average loan size. A $5 million line and a $50 million line involve different conversations and different underwriting thresholds.

Step 2: Gather your documentation.

You’ll typically need two to three years of business financial statements and tax returns, a current balance sheet, a pipeline summary showing active loans and secondary market commitments, and documentation of your investor or agency approvals.

Step 3: Engage a lender.

Warehouse lending is a relationship-driven business. The lender’s experience with your loan types, their ability to move quickly, and the stability of the institution matter as much as the rate. Bring your documentation and be prepared to walk through your origination model and secondary market strategy.

Step 4: Underwriting and approval.

The lender will review your financials, your operational setup and your secondary market relationships. They may request additional documentation or ask questions about specific aspects of your business. This process is typically faster than conventional loan underwriting, but timelines vary based on facility size and complexity.

Step 5: Facility documentation and closing.

Once approved, you’ll work through the legal documentation for the credit facility. Your lender’s team will walk you through the draw and payoff procedures and any reporting requirements before the line goes live.

How to Qualify: What Lenders Look For

Understanding the qualification criteria before you apply helps you enter the process prepared. Warehouse lenders typically evaluate several factors:

• Origination track record. Lenders want to see demonstrated experience originating and closing loans — not just the intent to do so. Volume history, loan types and geographic focus all come into the evaluation. Strong, consistent financial performance over time reinforces your credibility here, so come prepared with financial statements, tax returns and credit reports that tell a clear story.
• Secondary market relationships. Because the warehouse line is repaid when loans are sold, lenders need confidence that you have reliable, established channels to sell or securitize loans in a timely way. Investor commitments, agency approvals or correspondent relationships all support this, and being able to document those relationships with contracts or agreements strengthens your position further.
• Financial health and stability. Expect to provide financial statements, tax returns and other documentation that demonstrates your business’s liquidity, profitability and debt position. Lenders are looking for evidence that you can manage the line responsibly and that your business isn’t
• overleveraged. Accurate, up-to-date records aren’t just a box to check; they signal the kind of operational discipline lenders want to see.
• Collateral. Lenders often require collateral as security for the facility — typically the loans themselves, but potentially other assets depending on the structure. Assess what you can offer and ensure it aligns with the lender’s requirements before you sit down at the table.
• Operational infrastructure. Warehouse lenders will evaluate whether your business has the systems and processes to manage loan-level reporting, track draws and payoffs and maintain accurate records throughout the origination cycle. A clear business plan that covers your pipeline management, secondary market strategy and sales projections demonstrates that you’ve thought through the full operational picture — not just the closing moment.
• The lender relationship itself. Warehouse lending is a relationship-driven business. Taking time to identify lenders who specialize in this space, understand your loan types and can move at deal speed will matter as much as any single qualification criteria. Come to early conversations ready to walk through your origination model, your secondary market outlets and your business goals. Lenders who are a real fit will engage there, not just at the finish line.

What to Expect After Your Line Is Open

Once your warehouse line is active, you’ll draw funds at each loan closing and repay the draw when that loan is sold. Most warehouse lenders require regular reporting on outstanding draws, loan statuses and pipeline activity. Staying current on reporting and maintaining your secondary market turnover within agreed timeframes are the operational priorities that keep the relationship running smoothly. Facility sizes can often be increased over time as your origination volume grows and your track record with the lender develop which is one reason the lender relationship matters as much as the initial terms.

Talk to Our Warehouse Lending Team

If you’re ready to explore a warehouse line of credit or just want to understand whether the structure fits your business, Customers Bank’s Warehouse Lending team works with originators across the size spectrum and are built to engage early in your process, not just at the finish line. Learn more about Customers Bank Warehouse Lending →