Ways to qualify
- Bank statements. 12 or 24 months of personal or business statements show your real cash flow.
- Tax returns. If your returns show strong income, a traditional option may work.
- Other options. Depending on your situation, a CPA-prepared profit-and-loss statement may be used.
HELOC or home equity loan?
HELOC: a line of credit you draw from as needed. Good for projects in stages or a cash cushion for your business.
Home equity loan: one lump sum with a fixed payment. Good when you know the amount.
Either way, your first mortgage stays the same.
Common uses
Home improvements, paying off higher-interest debt, buying equipment, or covering a slow season.
Frequently asked questions
How much can I borrow?
Many programs allow your first mortgage plus the new loan to total up to 90% of your home's value, depending on credit, property, and program. In Texas, the limit is 80% on the home you live in.
Can I use business bank statements?
Yes, with some programs.