I own a 2 family w/ no mortgage and can’t get a Heloc

[Sean Smith]

I own a 2 family out right that’s worth $300k. No mortgages. I also have zero personal debit besides a $400 credit card. Credit Karma says my score is 675. I recently open up a business for Electrical contracting and staffing. But the last 6 months before I started my business. I was on workmens comp from my W2 job. 2022 W2 I made $116k. So the last time I worked W2 was March 2023. I’ve called many banks and nobody will give me this credit line. My business is already profitable. But every bank is telling me they need 2 years of income before any bank will give me a credit line. Any suggestions?

[Jason Wray]

Sean,

You do not need (2) years of income you can use (1) year W2 or 1099. You can also use 12 or 24 months of bank statements for a gross average of deposits. That is for a primary home so if this is an investment rental you do not need any income just go DSCR.

You have to identify Banks and some lenders who offer alternative programs or Non/QM.  There are also options for traditional loans with a bank that uses private funding and can use a loan committee exception to use (1) year income.

Having a 640 or better fico score is going to be required in most cases.  You can also have a banker/loan officer pull your report and run a "Wayfinder" or Rapid Rescore report to see what is needed to pay down to get that score up in 3-5 days.  Its a great way to manipulate your credit and avoid the credit repair (Scammer).