Your deposits are your income. Finally, a loan that agrees.
A bank statement HELOC qualifies you on 12–24 months of bank deposits — not tax returns. Built for business owners and 1099 earners whose write-offs hide their real income.
How a bank statement HELOC works
1. You apply once
One application, one credit review. We price the bank statement HELOC against the other eleven programs at the same time, so you're not guessing whether it's the right shape.
2. Your deposits tell the story
Instead of tax returns, the lender reviews 12–24 months of your personal or business bank statements and averages the deposits to work out your qualifying income.
3. Write-offs stop working against you
If your accountant does their job well, your tax returns show a fraction of what you actually earn. Bank statement programs ignore the returns entirely — the cash moving through your accounts is what counts.
4. You get a line, not a lecture
Once approved, it works like any HELOC: a credit limit backed by your equity, interest only on what you draw, and a draw period before repayment begins.
Key terms
Business owners and 1099 earners whose tax returns don't show their real income.
- Type
- HELOC, alternative income docs
- Income
- 12–24 months of bank statements
- Tax returns
- Not required
- Credit
- Flexible FICO scores
Qualify on deposits, not tax returns.
A bank statement HELOC is usually right when
- You're self-employed, a 1099 contractor, or a business owner — and your tax returns understate your real income.
- You have steady deposits flowing through your bank accounts, even if the taxable income on paper looks thin.
- You want a flexible line of credit for your business, a renovation, or consolidating higher-rate debt.
- You'd rather keep your current first mortgage — and its rate — exactly where it is.
- You've been turned down or frustrated by conventional income documentation elsewhere.
Look elsewhere when
- You're a W-2 employee with straightforward income — a traditional HELOC will usually price better.
- Your deposits are irregular or mostly transfers between your own accounts — lenders look for genuine business or income deposits.
- You're 62 or older and want no monthly payment at all — a reverse mortgage is the honest answer.
- The property is a rental you're qualifying on its income — that's the DSCR investor loan's job.
What income could your deposits show?
Enter your average monthly deposits and an expense factor. This is arithmetic, not an offer — your real qualifying income comes from underwriting.
The expense factor is a placeholder for the math — lenders apply their own percentage to business-account deposits to allow for business costs. Personal accounts often use no factor at all (0%).
Average deposits over 12 months, less the expense factor.
The income figure a bank statement program would work from.
Illustrative only — write-offs often leave a fraction of real cash flow on paper.
If your deposits are strong but your tax returns are thin, this is exactly the gap a bank statement HELOC is built to bridge.
Estimates only — not a quote, an approval, or a commitment to lend. Actual income calculations, eligible deposits, and expense factors vary by lender.
Or call us directly — 602-550-5626.
Common bank statement HELOC questions
How do lenders calculate my income from bank statements?
They average your eligible deposits over 12 or 24 months. With business accounts, an expense factor is typically applied — for example, counting a percentage of deposits as income to allow for business costs. The estimator above shows the arithmetic; each lender's formula differs.
Do I really not need tax returns?
Correct — tax returns are not required. The bank statements are the income documentation. You'll still provide standard items like ID, insurance, and information about the property.
Can I use personal statements, business statements, or both?
Both are possible. Personal statements are often simpler; business statements usually involve the expense factor. We look at your accounts and tell you which path shows your income most accurately.
Is the rate higher than a regular HELOC?
Generally yes — alternative documentation carries a pricing premium. The trade is that you actually qualify, and on a line you only pay interest on what you draw.
What if I've only been self-employed for a year?
Many programs want a two-year self-employment history, though some work with less. Bring us the situation — one application tells us which of the twelve programs fits.
Not sure a bank statement HELOC is the one?
Alternative income documentation is one of twelve ways to use your equity. Compare them side by side, or tell us your situation and we'll point you at the two or three that genuinely fit.
Questions? We're Here to Help.
Call me today to discuss which program is best for you.
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