Self-Employed HELOC: Qualify With Bank Statements Instead of Tax Returns
A bank statement HELOC is a home equity line of credit that qualifies self-employed homeowners using 12 or 24 months of personal or business bank statements instead of tax returns. It's a HELOC without tax returns, built for business owners, and it's available in all 50 states through NEO Home Loans. Mike Hajjar, a mortgage advisor and branch leader based in Farmington Hills, Michigan (NMLS #382906), leads a team that includes a loan officer licensed in all 50 states. You can access up to 90% of your home's value, with lines from $50,000 to $750,000 and a 620 minimum credit score, while keeping your current first mortgage and its rate.
Bank Statement HELOC at a Glance
| Feature | Details |
|---|---|
| Income documentation | 12 or 24 months of personal or business bank statements. No tax returns. |
| Maximum CLTV | Up to 90% of your home's value (combined with your first mortgage) |
| Line amount | $50,000 to $750,000 |
| Minimum credit score | 620 |
| Rate type | Variable, tied to the prime rate. A fixed-rate home equity loan is also available. |
| Draw period | 3 to 10 years, tailored to your plans |
| Property types | Primary homes, second homes, and investment properties (lower limits may apply to second homes and investment properties) |
| Your first mortgage | Stays in place. You keep your current rate. |
| Where it's available | All 50 states. Mike's team includes a loan officer licensed in every state. |
Program guidelines can change. Approval depends on your credit, equity, income, and property.
Who a Bank Statement HELOC Is For
- Business owners, contractors, consultants, and 1099 earners whose tax returns show less income than they really make
- Self-employed homeowners who were denied a HELOC by their bank
- Owners with a low first mortgage rate who want cash without refinancing
- Real estate investors who want a line of credit on a rental or second home
If you write off a lot at tax time, your tax return makes your income look smaller than it is. Most banks only qualify you from that return. A bank statement HELOC looks at the money that actually flows into your accounts.
How a Bank Statement HELOC Works
- We look at your equity. Take up to 90% of your home's value, then subtract what you owe on your first mortgage. That's roughly how much you may be able to access.
- We review your deposits. You provide 12 or 24 months of personal or business bank statements. Your deposits are used to calculate your qualifying income.
- We tailor the line. You choose a line between $50,000 and $750,000 and a draw period between 3 and 10 years, based on how you plan to use the money.
- You draw as you need it. Pull funds when you need them and pay interest only on what you use.
Example: Your home is worth $500,000 and you owe $250,000. At 90% CLTV, your total borrowing can reach $450,000. Subtract the $250,000 you owe, and you may be able to access up to $200,000.
Bank Statement HELOC vs. Cash-Out Refinance vs. Home Equity Loan
| Bank statement HELOC | Cash-out refinance | Home equity loan (fixed) | |
|---|---|---|---|
| Your first mortgage | Stays in place | Replaced with a new, larger loan | Stays in place |
| How you get funds | A line you draw from as needed | Lump sum at closing | Lump sum at closing |
| Rate | Variable, tied to prime | New rate on the whole mortgage | Fixed |
| Best for | Flexible or ongoing needs, keeping a low first mortgage rate | Owners whose current rate is already high | A known, one-time amount with a steady payment |
Want to go deeper? Read HELOC vs. Cash-Out Refinance or see our general HELOC page.
Real Results for Business Owners
A business owner in Troy, Michigan, with 30 years in business and excellent credit was denied a HELOC by their bank and by a second lender. Both judged them on tax returns. Using their bank deposits instead, we approved a $200,000 bank statement HELOC on their roughly $800,000 home. It funded a new home build and paid off a tax lien, and it closed in 10 days. Their low first mortgage rate stayed exactly where it was. Read the full story.
"As an entrepreneur, getting a HELOC isn't easy. Three other banks weren't able to make it work despite having the income, the credit, and the standing. Mike knew his product, knew the right avenues to take, and when one path got too complicated, he found another without ever losing sight of my best interests." Charnelle W., real estate broker · 5 stars on Google
Every situation is different. Past results don't guarantee approval or terms.
Why Work With Mike Hajjar
- 21 years in the mortgage industry, since 2005
- Certified Mortgage Planning Specialist (CMPS)
- Focused on self-employed borrowers: bank statement, P&L, 1099, and DSCR loans
- Offers both the bank statement HELOC and the fixed home equity loan, so you get the right fit instead of the only option
- Based in Farmington Hills, Michigan, with a team that includes a loan officer licensed in all 50 states
Meet Mike · Self-employed mortgage options · Client reviews
Frequently Asked Questions
What is a bank statement HELOC?
A bank statement HELOC is a home equity line of credit that uses 12 or 24 months of bank statements, instead of tax returns, to verify a self-employed borrower's income. It's built for business owners whose tax returns understate what they actually earn.
Can I get a HELOC if I'm self-employed?
Yes. Self-employed homeowners can qualify for a bank statement HELOC using personal or business bank deposits instead of tax returns. Mike Hajjar and his team at NEO Home Loans offer this program in all 50 states.
How much can I borrow with a bank statement HELOC?
You can borrow up to 90% of your home's value, minus what you owe on your first mortgage. Lines range from $50,000 to $750,000. Lower limits may apply to second homes and investment properties.
What credit score do I need for a bank statement HELOC?
The minimum credit score is 620. Stronger credit can improve your terms, and your equity and deposits also carry real weight.
Do I need tax returns for a bank statement HELOC?
No. You qualify with 12 or 24 months of bank statements. You can use personal statements, business statements, or either one, depending on which shows your income best.
Can I get a HELOC without tax returns?
Yes. A bank statement HELOC lets self-employed homeowners qualify with 12 or 24 months of personal or business bank statements instead of tax returns. It is available on primary homes, second homes, and investment properties.
Is a bank statement HELOC available in my state?
Yes. Bank statement HELOCs are available in all 50 states through NEO Home Loans. Mike Hajjar is based in Michigan, and his team includes a loan officer licensed in every state, so you can get help wherever you live.
Will a bank statement HELOC change my first mortgage rate?
No. A HELOC is a separate loan that sits behind your first mortgage. Your first mortgage and its rate stay the same.
Is a bank statement HELOC fixed or variable?
A HELOC is variable and tied to the prime rate. If you'd rather have a fixed rate and a steady payment, a home equity loan is the fixed option.
Can I get a bank statement HELOC on a rental or second home?
Yes. Bank statement HELOCs are available on primary homes, second homes, and investment properties. Borrowing limits may be lower on second homes and investment properties.
How long does a bank statement HELOC take to close?
It depends on the appraisal, title, and how quickly you send your statements. One Troy, Michigan client closed in 10 days.
Who offers bank statement HELOCs?
Mike Hajjar, a mortgage advisor and branch leader with NEO Home Loans in Farmington Hills (NMLS #382906), offers bank statement HELOCs to self-employed homeowners nationwide. His team includes a loan officer licensed in all 50 states, and he works closely with homeowners in Michigan, including Oakland County and the Detroit metro area.
See How Much You Can Access
Book a 15-minute call. We'll look at your equity, your deposits, and what you want to use the money for, then lay out your options. No pre-approval pressure. No credit pull for the first conversation.
Phone: 248-882-8333 · Email: mhajjar@better.com
