home equity line of credit
Bank Statement HELOC for Self-Employed Homeowners
If your tax return doesn’t show what you really earn, we can qualify you for a HELOC on 12 or 24 months of bank deposits instead.
Expect a line up to 80% CLTV on a primary residence (up to 85% on select programs), a credit score of 680+, and no W-2s, pay stubs, or tax returns anywhere in the file.
Here’s the part that decides how big your line is — and almost no lender explains it: how much of your deposits actually count as income. Get that number right and it can swing your qualifying income by six figures. That’s the piece we work hardest for you.
If you’re self-employed, a business owner, freelancer, or 1099 borrower, a Bank Statement HELOC may help you access cash from your home equity using 12 months of bank statements instead of traditional tax-return income.
Edited by: Marcos Zambrano, President & Owner NMLS #988935 · Andes Mortgage LLC NMLS #2187991 · Updated July 21, 2026
Why self-employed borrowers use it
Your real income counts
We qualify you on the money moving through your accounts, not the number your CPA worked hard to shrink on your return
Keep your low first-mortgage rate
A second-lien HELOC leaves your existing mortgage untouched — you access equity without refinancing a rate you’ll never see again.
Draw only what you need
A revolving line with interest-only payments during the draw period, so you’re not paying on money you haven’t used.
Personal or business accounts
We can work from either 12 or 24 months of personal or business bank statements, whichever tells your income story best.
The number that sets your line: your expense ratio
On a bank statement program, we don’t count every dollar of deposits as income. We subtract an assumed business-expense percentage first, and only what’s left counts. That percentage — your expense ratio — is the single biggest lever on how much you qualify for, and it’s negotiable in a way most borrowers never realize.
The default is often 50%. But a letter from a licensed tax preparer stating your actual expense ratio can drop it to as low as ~30%. Here’s what that does on $500,000 of annual deposits:
|
EXPENSE RATIO
|
QUALIFYING INCOME
|
HOW WE GET THERE
|
|---|---|---|
|
50% - program default
|
$250,000
|
Program default - No letter
|
|
40%
|
$300,000
|
CPA / tax-preparer letter
|
|
30%
|
$350,000
|
CPA / tax-preparer letter
|
|
10% - Lowest expense ratio allowed
|
$450,000
|
CPA / tax-preparer letter
|
+$100k
in qualifying income, from a single letter — often the difference between an approval and a decline.
This is what we do for you
When we take your file, getting your expense ratio documented correctly is one of the first things we handle — because it’s usually worth more to your line than any other single move. Send us your deposits and we’ll tell you what your qualifying income actually looks like.
We’ll run the numbers for you: Take Mortgage Match and see the best HELOC you qualify for.
Why self-employed homeowners struggle with traditional HELOCs
Traditional banks often look at tax-return income first. But for many business owners, tax deductions can make strong cash flow look much lower on paper.
traditional HELOC problem
Most banks want W-2s, paystubs, and tax-return income. That can be a problem when your write-offs reduce the income shown on paper.
Self employed Tax Situation
Your business may have strong deposits and real cash flow, but tax deductions can make it harder to qualify with a traditional HELOC.
bank statement HELOC solution
We use your business or personal bank statements to get a better picture of your real income – helping you qualify based on what you actually earn.
what is a bank statement HELOC?
A bank statement HELOC is a home equity line of credit that uses your personal or business bank statements in lieu of tax returns for income calculation. You can access funds as needed while keeping your current first mortgage intact.
Regular HELOC
Uses tax returns and W2s
Income can be limited by deductions
Harder for self-employed borrowers to qualify
May require refinancing your first mortgage
Bank Statement HELOC
Uses 12 months of bank statements
Reflects real cash flow
Program created for business owners
Keep your current first mortgage
Minimum requirents for a Bank Statement HELOC
credit score
≥ 680
Maximum Loan to Value
Up to 80% CLTV and 85% in some cases
Debt-to-income ratio
Maximum 50%
Documentation
12 or 24 months bank statements
Expense ratio
~50% default; ~10% with CPA letter
Occcupancy
Primary home, vacation and investment
Line of Credit Limit
Up to $1 Million
Draw period
3 or 5 years, interest-only
A Bank Statement HELOC may be a good fit for you if...
You are looking to tap the equity of your home
You are self-employed, contractor or freelancer
Your business has been in existence for at least 2 years
Your income shown on your tax returns isn’t strong enough
Personal vs. business bank statements
We can build your income two ways, and we’ll use whichever qualifies you for more:
Personal statements
We typically count a high percentage of your deposits, since personal accounts carry fewer business expenses. Simpler, and often stronger if that’s where your income lands.
Business statements
We apply an expense ratio — and this is where the CPA letter above earns its keep, since documenting a lower ratio directly raises your qualifying income.
Not sure which is better for your situation? That’s exactly the kind of thing we figure out for you before you apply, so you go in with the stronger file. Start here →.
Bank Statement HELOC Calculator
Enter your estimated home value, current mortgage balance, and desired draw amount to estimate how much equity you may be able to access.
80% is a conservative default. Higher CLTV options may depend on credit, occupancy, property type, state, and lender guidelines.
HELOCs are commonly variable-rate products. Actual rate may vary.
Estimated payment is based on the amount drawn, not necessarily the full approved line.
Based on your home value, mortgage balance, and selected CLTV.
During the draw period, based on the selected draw amount.
Current mortgage plus selected draw amount divided by home value.
Estimated home value minus current mortgage balance and selected draw amount.
This calculator is for educational purposes only and is not a commitment to lend. Estimated HELOC availability and payment depend on credit score, property value, mortgage balance, occupancy, state, income documentation, rate, margin, lender guidelines, and underwriting approval. Programs may change without notice.
How do we put these numbers together? Our methodology
The ranges on this page reflect current wholesale guidelines across the multiple Non-QM and bank statement lenders we work with, reviewed as of July 2026. As a broker, we place your file with whichever of them fits it best, which is why we show ranges here and confirm your exact numbers on a call.
We publish a figure only when two or more independent lender sources corroborate it, and we show it as a range rather than a single number. Individual programs land inside — and occasionally outside — every range shown. We don’t publish any one lender’s guidelines and we don’t name lenders.
- CLTV figures are maximums and assume the credit tier that supports them
- Expense-ratio examples are illustrative; your actual ratio depends on your accounts and documentation
- Reserves are stated in months of PITIA on the subject property
- Everything here assumes an otherwise clean file, and nothing on this page is a commitment to lend or a guarantee of approval
Program terms and eligibility vary by lender and are subject to change without notice. Figures shown are typical market ranges as of the date above, not a commitment to lend. Andes Mortgage LLC, NMLS #2187991. Equal Housing Lender.
Frequently asked questions
Get answers to some of the most common questions about Bank Statement HELOCs for self-employed borrowers
What's a bank statement HELOC?
A Bank Statement HELOC is a home equity line of credit designed for self-employed borrowers, entrepreneurs, business owners, freelancers, and 1099 contractors.
Instead of relying only on tax returns as typical HELOCs do, Andes Mortgage LLC reviews 12 months of personal or business bank statements to document your income. With this program, you do not need to show tax returns to qualify.
Can I get a bank statement HELOC if I'm self-employed?
Yes! In fact, this program is only for those who are self-employed. If you are a wage earner W2 employee, a full documentation HELOC may be a better fit for you.
How much can I borrow with a bank statement HELOC?
The maximum line of credit amount that we do at Andes Mortgage LLC through our lending partners is $1 million.
Is an appraisal required for a bank statement HELOC?
An appraisal may or may not be required. In some cases, certain valuation alternatives may be available for loan amounts at or below $400,000, but appraisal requirements depend on the property, loan amount, occupancy and other factors.
Will this affect my current first mortgage?
No! This is one of the biggest advantages of a home equity line of credit. A HELOC acts as a second mortgage, therefore, your current first lien is untouched so you don’t lose your current rate or terms.
ready to explore your Bank Statement HELOC options?
Let’s walk through your numbers and see if a bank statement HELOC is the right option for you.
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