What is a Bank Statement HELOC?
A bank statement HELOC is a home equity line of credit designed for self-employed borrowers whose tax returns understate their true income. Instead of using your adjusted gross income from tax returns, the lender averages your deposits over the last 12 to 24 months — typically counting 50–75% of business-account deposits (or a higher percentage of personal-account deposits) as qualifying income. If your deposits average $30,000 a month, the lender may credit roughly $180,000+ a year of usable income, regardless of what your returns show after write-offs.
It's a revolving line, not a lump-sum loan: you draw what you need, pay interest only on the balance you use during the draw period, and the availability comes back as you repay. It's the cleanest way for a business owner to tap home equity without the tax-return math that trips up conventional applications.
Program benefits
- No tax returns required — qualify on 12–24 months of business or personal bank deposits.
- Add-backs done right — depreciation, home office, and one-time write-offs don't count against you.
- Access up to 85–90% of your equity, depending on credit and property type.
- Flexible, revolving line — draw and repay as you need, interest only on what you use.
- Direct lender in 22 states — a real originator who reads a Schedule C correctly.
Who qualifies
- Self-employed for generally 2+ years (some programs allow 1 year with history).
- 12–24 months of bank statements showing consistent deposits.
- Sufficient home equity — typically leaving you within an 85–90% combined loan-to-value on a primary residence.
- Credit score generally 660+ for best pricing; lower considered with compensating factors.
- Property in one of the 22 states we're licensed in.
Want the full deep-dive?
Want the deposit math, the typical rate premium, and how to lower your rate? Read the full guide to bank statement HELOC rates →
Frequently asked questions
What is a bank statement HELOC?
A bank statement HELOC is a home equity line of credit for self-employed borrowers that qualifies income using 12–24 months of bank deposits instead of tax returns. Lenders average your deposits (often counting 50–75% of business-account activity) to establish qualifying income, which lets business owners with heavy write-offs access their equity.
How many months of bank statements do I need?
Most programs use either 12 or 24 months of statements. Twenty-four months gives the lender a fuller, more stable picture and can improve your qualifying income if your business is seasonal; 12 months is faster and works when recent deposits are strong and consistent.
What credit score do I need for a bank statement HELOC?
Generally 660 or higher gets you the best pricing, though some programs consider scores lower with compensating factors like low loan-to-value or strong reserves. Because these lines are risk-priced, a higher score meaningfully lowers your rate.
How much can I borrow?
Typically up to 85–90% of your home's value minus your existing mortgage on a primary residence, subject to credit and the deposit-based income calculation. On an investment property expect a lower cap, around 70–75%.
Is a bank statement HELOC more expensive than a regular HELOC?
There's usually a modest rate premium versus a full-documentation HELOC, because the lender is using alternative income documentation. For most self-employed borrowers that premium is small relative to the benefit of qualifying at all.
Talk to a licensed HELOC lender
Get a rate estimate or ask a question — direct answer from Audi Garner, Branch Manager & Broker (NMLS #190235). No sales pitch. No hard credit pull.
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Related HELOC resources
HELOC for the Self-Employed
The complete guide to qualifying as a business owner.
No-Doc HELOC
Access equity with minimal income documentation.
HELOC Without Tax Returns
Four legitimate paths that skip the returns.
