Bank Statement HELOC
Self-employed and your deposits show your income best? At least one HELOC we offer can count deposits from a business bank account you connect electronically, with a credit score of 680 or higher.
What a bank statement HELOC requires
Each item below is a requirement of at least one HELOC program we offer.
- Business deposits count with a credit score of 680 or higher at one program, and above 680 at another.
- The business account must be connected electronically. At least one program does not allow manual review of business bank statements.
- At least one program needs 180 days or more of transaction history on the business account.
- At least one connected business account needs a current balance and a 30-day median balance of at least $100, and no connected business account can have 3 or more negative-balance days in the last 30 days.
- Loan proceeds, cash advances, transfers, refunds, tax refunds and deposits under $10 do not count as business revenue.
- Your debt-to-income ratio can be up to 50%; at least one program caps it at 45% on 2 to 4 units.
Business deposits count
Personal and business combined
Lines from $15,000
Checking and savings accounts
Your ownership share applied
Clear limits up front
How Does A Bank Statement HELOC Work?
You connect your business account, and recurring deposits become a yearly income amount after an expense ratio and your ownership share are applied.
At least one program reads the transactions in the business checking and savings accounts you connect. It keeps deposits that recur at least 3 times and leaves out items such as loan proceeds, cash advances, transfers and refunds. If the history covers less than 365 days, the total is annualized. The result is your annual business revenue.
Revenue is not the same as income. The program applies a business-specific expense ratio and then your ownership percentage: annual revenue, times 1 minus the expense ratio, times your ownership share. Scores from 680 to 719 get the higher expense ratio. If the income from your deposits runs well above the income you state, your business is checked against state registration records. If you are not found there, business deposits may not count, and if the records imply a smaller ownership share than you state, the lower share is used.
Personal deposits are reviewed first. If they fall short, business income fills the gap, and if you have no personal income, business income can be used on its own. Personal accounts need at least 85 days of history. If your tax return tells the story more clearly, see our one year tax return HELOC page.
Why choose Saxton for a bank statement HELOC
This page is for business owners whose bank deposits show their income more clearly than their paperwork does.
Deposits Count At 680
At least one program counts business deposits with a score of 680 or higher. Another counts them with a score above 680.
Both Accounts Work Together
Personal deposits are reviewed first. Business income can cover a shortfall, or stand alone if you have no personal income.
Lines Up To $750,000
At least one program offers lines from $25,000 to $750,000, with at least 75% drawn at closing. Lines above $500,000 there are for a primary home and need a 700 score.
180 Days Of History
At least one program needs 180 days or more of business account history. An account with less history is not eligible for income at that program.
Your Share Is What Counts
If you own part of the business, net income is multiplied by your ownership percentage. If state records are checked, the lower of your stated share and the share they imply is used.
Straight Answers On Limits
One program does not review business statements by hand. If any connected business account has 3 or more negative-balance days in the last 30 days, business income is not available at another.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about bank statement HELOCs.
At least one program counts business deposits at a score of 680 or higher. Another requires a score above 680 for business bank statements.
You connect the account instead of sending statements. At least one program needs at least 180 days of transaction history on the business account.
Not at one program, which requires the business account to be connected electronically and permits no manual review. Another program’s manual income review uses 2 years of tax returns instead.
Qualifying deposits are added up and annualized into annual revenue. That revenue is reduced by a business-specific expense ratio and then multiplied by your ownership percentage. The income used never exceeds the income you state on your application.
Among others, loan proceeds, cash advances, transfers, reversals, refunds, adjustments, overdraft credits, rewards, interest, dividends, tax refunds, pensions, brokerage transfers and deposits under $10 are left out.
No. Net business income is multiplied by your ownership percentage. If your deposits show much more income than you state, state business records are checked, and the lower of your stated share and the share they imply is used.
Yes. At least one program reviews personal accounts first and uses business income to cover any shortfall. Personal accounts need at least 85 days of history.
Find out what you qualify for
Tell us how your business gets paid and where you bank, and we will show you the options that fit.
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. Draw requirements and variable rate terms apply. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.