home equity line of credit 

Bank Statement HELOC for Self-Employed Homeowners

Tap into your home equity using personal or business bank statements instead of tax returns — without refinancing your current first mortgage.

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.

Watch: How a Bank Statement HELOC Works

A quick breakdown for self-employed homeowners who want to access equity without using tax returns.

No tax returns required

Uses 12 months of bank statements for income 

Does not affect your current first mortgage

Line options from $50,000 up to $1 million

No tax returns required

Lines from $50K to $1M

Keep your first mortgage

Self-employed friendly

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. 

Estimate Your Equity Access

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.

Estimated Available HELOC
$380,000

Based on your home value, mortgage balance, and selected CLTV.

Estimated Interest-Only Payment
$1,313/mo

During the draw period, based on the selected draw amount.

New Combined LTV
52.9%

Current mortgage plus selected draw amount divided by home value.

Estimated Remaining Equity Cushion
$400,000

Estimated home value minus current mortgage balance and selected draw amount.

Your scenario may have available equity. Final eligibility depends on credit, income, occupancy, property type, state, and underwriting approval.
Review My HELOC Scenario

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.

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 90% CLTV

Debt-to-income ratio

Maximum 50% 

Occcupancy

Primary home, vacation and investment

Line of Credit Limit

Up to $1 Million

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

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. 

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. 

The maximum line of credit amount that we do at Andes Mortgage LLC through our lending partners is $1 million. 

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. 

 

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. 

Although rates change based on your different scenario, current rates hover between 8% and 10.5% depending on credit history, loan to value, property type, occupancy and other factors.

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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