Self-Employed Home Equity Loan
Borrow against your home with a fixed-rate second mortgage, qualified on bank statements, a P&L, 1099s or assets instead of tax returns. Loan amounts run from $50,000 to $1,000,000 on at least one program.
Tap equity without tax returns
At least one program lets a self-employed borrower qualify for a closed-end second mortgage on bank statements, with no tax returns.
- Qualify with 12 or 24 months of personal or business bank statements.
- On the bank statement option, at least one program requires no tax returns, tax transcripts or IRS Form 4506-C from the primary borrower.
- Loan amounts start at $50,000 and reach $1,000,000 on at least one program.
- At least one program accepts credit scores down to 660 on loans up to $500,000.
- Primary homes, second homes and investment properties are all eligible.
- At least one program requires no reserves on a stand-alone loan.
Bank statements replace tax returns
A CPA-prepared P&L can work
1099 contractors can qualify
Your assets can count as income
Fixed-rate, fully amortizing loan
Newer businesses may still qualify
How This Loan Works
It is a closed-end second mortgage that sits behind your current first mortgage, so your first mortgage stays in place.
A self-employed home equity loan is a closed-end second mortgage with a fixed rate and a fully amortizing payment schedule. It is made as a stand-alone second behind the mortgage you already have. On a purchase, at least one program can also pair it with a new first mortgage.
The difference is how you document income. At least one program accepts 12 or 24 months of personal or business bank statements. Others accept a P&L prepared by a licensed tax professional, 1 or 2 years of 1099s, or qualified assets such as bank, investment and vested retirement accounts.
With business bank statements, income is figured with a fixed 50% expense ratio, an expense ratio from your tax professional, or a P&L from your tax professional. An expense ratio from a tax professional must be at least 15%. The maximum debt-to-income ratio is 50% on at least one program.
Why choose Saxton for a self-employed home equity loan
This page is for business owners, freelancers and 1099 contractors who own a home and want a fixed loan against their equity without qualifying on tax returns.
Statements Instead Of Tax Returns
When you qualify on bank statements, at least one program does not require tax returns, tax transcripts or a 4506-C from the primary borrower. A salaried co-borrower still signs a 4506-C.
Under Two Years Can Work
At least one program accepts 18 months of self-employment when you have 3 or more years of prior experience in the same line of business. Licensed professionals such as medical, legal and accounting with a business older than one year may qualify with 3 years of prior experience or related formal education. A 700 minimum credit score applies to both options.
Room For Larger Loans
Loan amounts reach $1,000,000 on at least one program. Above $750,000, that program requires a primary residence that is a single-family home or PUD, full documentation or bank statements, and a debt-to-income ratio of 43% or less.
Rentals And Second Homes Qualify
Second homes and investment properties are eligible, not just the home you live in. At least one program allows an investment property to be vested in an entity.
No Reserves Required
At least one program requires no reserves on a stand-alone loan, so you do not need months of savings set aside to qualify.
No Ownership Wait Required
At least one program has no ownership seasoning requirement for a primary residence. If you have owned the home less than 6 months, the amount you can borrow is reduced.
Hear From Homeowners Like You
Frequently Asked Questions
Direct answers to the questions self-employed borrowers ask most about borrowing against their equity.
Yes. At least one program qualifies self-employed borrowers on 12 or 24 months of personal or business bank statements, a P&L, 1099s or assets instead of tax returns.
No, not on the bank statement option. At least one program requires no 4506-C, tax transcripts or tax returns from the primary borrower. A salaried co-borrower still needs a 4506-C.
660 on at least one program, for loans up to $500,000. Other programs start at 680 or 700, and the largest loan amounts call for 700 or higher.
Between $50,000 and $1,000,000 on at least one program. The maximum depends on your credit score, the loan amount tier, how you occupy the home and your equity.
Yes. At least one program accepts a 12 or 24 month P&L prepared by a CPA, EA, PTIN holder, CTEC preparer or tax attorney, plus at least 2 months of business bank statements. Another program accepts a 12-month P&L on its own when a CPA, CTEC or EA prepares and signs it and the business has operated 12 months or more.
Yes. At least one program uses 1 or 2 years of 1099s and applies a 10% expense factor. You cannot be the owner of the company that issues the 1099.
Yes. If you would rather draw on a line of credit, at least one HELOC we offer accepts 12 months of personal or business bank statements.
Find out what you qualify for
Tell us about your business, your documents and your home, and we will check how it fits our programs.
Get Pre-Qualified- Consumer Financial Protection Bureau, home equity loan compared with a HELOC
- Consumer Financial Protection Bureau, mortgages
Loan amounts, rates, terms, and eligibility are subject to credit approval, asset and income verification, appraisal, and program guidelines. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.