Features
- Loan amounts up to $750,000
- First lien HELOC allowed
- Owner-occupied, second homes, and investment properties
- Minimum initial draw 80%
- Interest-only payments during draw period
- No restrictions on how funds can be used
- Multiple loan terms available
- Not available in all states
About Bank Statement HELOC
A Home Equity Line of Credit (HELOC) is a flexible financial product that allows homeowners to leverage the equity in their homes as collateral for a revolving line of credit. Borrowers can use the funds for various purposes, and the loan is secured by the home’s equity. This credit line enables borrowers to access funds as needed during a specified draw period. The amount available for borrowing is determined by the difference between the home’s current market value and the outstanding mortgage balance. HELOCs consist of a draw period where funds can be accessed and a subsequent repayment period. During the draw period, you make interest-only payments on the amount you have borrowed. At the end of your draw period, you can no longer pull funds from the credit line, and you enter the repayment period. During the repayment period, you will make payments on the amortized principal and interest for your remaining balance.
Bank Statement HELOCs are designed for self-employed borrowers to meet qualifying criteria using bank statements, 1099 income, or other alternative documents to prove their ability to repay, instead of traditional requirements like W2s or tax returns.
Who should use a HELOC?
If you need a large sum of cash on a revolving basis to fund big expenses but you’re not sure exactly how much you need or if those needs may change over time, a HELOC may be a good choice.
If you’re not sure a HELOC is right for you, there are other options for tapping into your home’s equity. A Home Equity Loan is another type of second mortgage that lets you borrow a lump sum against your home’s equity with fixed monthly payments. Another option is a cash-out refinance, which allows you to refinance your current mortgage to a higher amount, allowing you to receive the difference. We offer several specialized loans for self-employed borrowers that can be used for cash-out refinancing, such as Bank Statement loans, 1099 Income loan, Profit & Loss loan, or Asset Qualifier.
Not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan and applicant's credit, income, property, and a minimum loan amount.