Looking for a heloc lender

Member since 2025 · 11 posts · 16 votes

Hello, I am wondering if any lenders offer helocs that don’t look at tax returns as much and more the value of the house? I own my home outright and I am self employed. I have only had my business for 2 years and the first year there wasn’t much profit so when lenders go to average the past 2 years I never qualify for anything. Just wondering if anyone had any insight or could point me in the right direction. Thank you!

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Jeff Roth

Real Estate Consultant · Ann Arbor, MI · Member since 2022 · 460 posts · 250 votes

3mo

Hi Eli from Toledo Ohio-

Great question! You are self-employed and own two houses that are paid for and would like to get a Home Equity Line of Credit (HELOC) that is not based so much on your income as your business is growing.

If you have rental income coming in on one of the houses, you cans use the rental income to qualify for a HELOC and not so much your own income statements.

I do have a lender in Ohio that does this and can provide their contact information if interested.

Happy to help!

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Erik EstradaBusiness Member
Lender · Member since 2022 · 6k+ posts · 1k+ votes
3mo
Quote from @Eli Fackler:
Hello, I am wondering if any lenders offer helocs that don’t look at tax returns as much and more the value of the house? I own my home outright and I am self employed. I have only had my business for 2 years and the first year there wasn’t much profit so when lenders go to average the past 2 years I never qualify for anything. Just wondering if anyone had any insight or could point me in the right direction. Thank you!

If this is an investment property, there are lenders that offer fixed second position DSCR loans.
[email protected]818-269-7983
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Jimmy LieuBusiness Member
Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
3mo
Quote from @Eli Fackler:
Hello, I am wondering if any lenders offer helocs that don’t look at tax returns as much and more the value of the house? I own my home outright and I am self employed. I have only had my business for 2 years and the first year there wasn’t much profit so when lenders go to average the past 2 years I never qualify for anything. Just wondering if anyone had any insight or could point me in the right direction. Thank you!
Hey Eli, yeah there are definitely lenders out there who lean more on the property value and equity rather than heavily weighting tax returns, especially for HELOCs and other asset-based or “no doc / low doc” style lending, but they usually come with stricter terms like higher rates, lower LTV limits, or more reserves. Since you own your home outright, that actually puts you in a strong position because some banks and credit unions will focus more on your equity position and credit profile than your income history, especially if you can show consistent deposits or business cash flow in your bank statements even if taxable income is low. Another angle some self-employed investors use is portfolio or private lenders who underwrite more holistically instead of just averaging tax returns, so it can be worth talking directly with local credit unions or mortgage brokers who specialize in investor or self-employed borrowers rather than big retail banks.
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Yaffi Silkes
Lender · Hinton, WV · Member since 2026 · 12 posts · 1 vote
3mo
One thing I'd pay close attention to when wholesaling out of state is building a strong local team. Having a reliable realtor, title company, contractor, and boots-on-the-ground contact can make a huge difference when evaluating deals and managing unexpected issues.

I'd also make sure you understand local market rents, property values, repair costs, and any wholesaling regulations specific to that state. What looks like a great deal on paper can be very different once you factor in local market conditions.

Out of curiosity, which market are you looking to wholesale in?
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Samuel Awosolu
Lender · Florida / Georgia · Member since 2025 · 58 posts · 28 votes
3mo
Hello Eli,

There are HELOC options built for exactly your situation.

It seems most lenders are averaging your last 2 years of tax returns and since your first year was low. That average is dragging down your ability to qualify. This happens to be common with self employed individuals.

I have a few lenders that qualify using 12 months of bank statements instead of tax returns. They look at the money actually flowing into your account not your write-offs or your low first year. This paints a much truer picture.

The good thing is you own your home outright which means a HELOC would sit in first lien position and there are many programs that allow this.The fact that you have full equity works in your favor.
You would be able to borrow up to a high percentage of your home's value based on your credit score.

No cash needed at closing or cash reserves required.
The first 5 years are interest-only, so payments stay lower early on. Just keep in mind the interest is not fixed. It's a variable rate and could fluctuate along with the market.
If you need more direction or want me to run some numbers for you. Feel free to send me a DM.
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Jeff Roth
Real Estate Consultant · Ann Arbor, MI · Member since 2022 · 460 posts · 250 votes
3mo
Hi Eli from Toledo Ohio-
Great question! You are self-employed and own two houses that are paid for and would like to get a Home Equity Line of Credit (HELOC) that is not based so much on your income as your business is growing.
If you have rental income coming in on one of the houses, you cans use the rental income to qualify for a HELOC and not so much your own income statements.
I do have a lender in Ohio that does this and can provide their contact information if interested.
Happy to help!
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Christian TurnerPro Member
Lender · Coral Gables, FL · Member since 2026 · 20 posts · 4 votes
15h
Eli, broker here (Florida/Texas/Colorado, so I can't do an Ohio primary-residence loan for you; this is just the map). The two-year average is a conventional rule, and there are three ways around it that any non-QM broker in Ohio can run:
1. One-year tax return program. Several non-QM lenders qualify self-employed borrowers on the most recent year's return only, which fixes your exact problem (weak year one, real year two). Same LTVs as bank statement, usually cheaper.
2. Business bank-statement loan. 12 or 24 months of business deposits, an expense factor set by your industry or a CPA letter, no tax returns at all. On a free-and-clear home this is written as a first-lien cash-out refinance rather than a "HELOC," typically up to 75-80% LTV, and the fixed payment is often lower than a variable HELOC anyway. Ask specifically for "bank statement cash-out, first lien."
3. If the money is for your rentals, put the loan on the rentals instead. A DSCR cash-out qualifies on the rent, not your income, and keeps your paid-off home untouched. With 3 doors that's often the cleanest move.
What won't work: most bank and credit-union HELOCs, because they underwrite to full-doc income. Skip those and go straight to a non-QM shop with those three program names.
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