Realtor · Navarre, FL · Member since 2014 · 156 posts · 55 votes
Hey BP'ers! So I am trying to get a HELOC on my home right now to use for investing purposes. I was turned down due to my income not being high enough on my w2s. I currently own my own business and have lots of write offs and pretty good income (just not on my tax returns). :( Does anybody know of any companies doing a HELOC and basing it off of bank statements alone? I think that is the only way I'm going to be able to qualify for one.
As far as I am aware no lender will do a HELOC without full documentation.
The type of loan you are talking about however is called a Non-QM Bank statement loan and most companies will be able to do this. This loan is used primarily for a self-employed and will require 12-24 months of business or personal bank statements. If it is personal bank statements then all deposits will be counted toward income whereas business bank statements will take only count 50% of deposits towards income. The disadvantages of this loan type is it will be a higher rate than a conventional, Minimum credit score allowed is a 660, 6 months of reserves, and a 80% max Loan-to-Value. These terms are based on what my company does and will vary from lender to lender.
@Torrell Palmason Thanks for the reply! :) I have definitely heard of the non-QM loans..are those mortgages you are talking about, or are those just loans in general? I was really hoping to take advantage of the low rates of a HELOC to be able to help fund my future flips rather than having to use 100% HM.
With your recorded income being low it really limits your options to just the Non-QM banks statements. Non-QM bank statements are a Mortgage, no HELOCS will be available as they will always be a full Documentation loan
Hard Money is an option for a flip if you had a down payment. Hard money is only non-owner occupied and is generally 6-12 months term. This is a great option for a flip or BRRRR. We have a Hard Money loan program that given the right circumstances can cover 100% of purchase and rehab. PM me for details.