Self-Employed HELOC in Florida

Q: What credit score does a self-employed borrower need?

The minimum is 660, the same as any Bank Statement HELOC borrower. There is no self-employment penalty on credit.

The self-employed problem

Why your tax return undercounts what you earn

You and your CPA work hard to keep taxable income low. Then a lender averages two years of that low number and tells you that you do not qualify. The income is real. The paperwork just was not written for a lender.

What a conventional HELOC sees

Two years of tax returns, averaged
Net income after depreciation, vehicles, equipment and home office
A declining year treated as a red flag, even if it was a big equipment purchase
Often a fraction of your real cash flow

What a Self-Employed HELOC sees

12 months of bank statements, business or personal
Your actual deposits, averaged monthly
An expense factor as low as 25% on business accounts
No tax returns, no W-2s, no pay stubs

Qualifying

How a self-employed borrower qualifies

The HELOC is underwritten on bank statements only. If you would rather use a P&L or 1099s, see the second mortgage option below.

12 months of statements

Send the last 12 consecutive months from the account your income lands in. We total the eligible deposits and set aside transfers, loan proceeds and one-time items.

Expense factor

On a business account a share of deposits is treated as operating cost, as low as 25% depending on your business. The rest, divided by 12, is your monthly income.

Credit and equity

A 660 or better credit score and a combined loan-to-value of up to 90% across your first mortgage and the new line.

Want the full worked example of the math? See the Bank Statement HELOC page →

Who we help

Built for how Florida business owners get paid

Contractors & trades

Roofers, GCs, electricians, pool and HVAC companies. Deposits come in big and lumpy; write-offs for trucks and equipment are heavy. Bank statements capture the real picture.

Realtors & commission earners

Commission income that swings with the market and a 1099 that never matches the deposits. Twelve months of statements smooth it out.

Consultants & professionals

Independent attorneys, CPAs, physicians, engineers and consultants paid by invoice or 1099, often through an S-corp or PLLC.

Restaurants, salons & retail

Owner-operators with steady daily deposits and a tax return built to keep taxes down. The deposits qualify you.

Freelancers & creators

Designers, developers, photographers, content producers and gig-economy earners with several income streams landing in one account.

Owners of higher-value homes

Lines up to $1,000,000 mean a business owner with a $1.5 million Florida home is not capped by a small-line program.

Prefer to qualify with a P&L or 1099s?

The HELOC uses 12 months of bank statements only. Our closed-end second mortgage, also called a HELOAN, offers two more doors: a CPA-prepared profit and loss statement with 3 months of bank statements, or your 1099s with 3 months of bank statements. It is a fixed rate, fixed term, lump-sum loan up to $750,000, and your first mortgage stays untouched.

Fixed rate and a payment that never changes
Up to $750,000, up to 89.9% combined loan-to-value
P&L, 1099s or 12 months of statements

Bank Statement Second Mortgage →

Three ways to document income

12 months of bank statements

HELOC or second mortgage

CPA P&L + 3 months of statements

Second mortgage only

1099s + 3 months of statements

Second mortgage only

No tax returns on any of the three.

Questions

Self-Employed HELOC FAQ

Can I get a HELOC if I am self-employed? +

Yes. Self-employed Florida homeowners qualify for our HELOC using 12 months of bank statements in place of tax returns. Your business deposits establish your income, so the write-offs that shrink your taxable income do not shrink your borrowing power. Lines run from $50,000 to $1,000,000.

Why is a HELOC harder to get when you are self-employed? +

A conventional HELOC averages the net income on your last two tax returns. Good tax planning pushes that number down: vehicle, equipment, depreciation, home office, retirement contributions. The lender sees the small number after write-offs, not the deposits you actually live on. A self-employed HELOC fixes the mismatch by looking at the deposits.

How long do I need to have been self-employed? +

You need 12 consecutive months of bank statements showing your business income, so in practice a year of self-employment history in the account you will document with. If you are newer than that, call us; a co-borrower with W-2 income or a different program may work.

I get paid on 1099s. Can I qualify with those instead of bank statements? +

For the HELOC, no: the line is underwritten on 12 months of bank statements only. If you would rather qualify on your 1099s, our Bank Statement Second Mortgage accepts 1099s plus 3 months of bank statements. It is a fixed-rate lump sum rather than a line, up to $750,000.

Can I use a profit and loss statement from my CPA? +

Same answer: not for the HELOC, but yes for the Bank Statement Second Mortgage, where a CPA-prepared P&L plus 3 months of bank statements is an accepted way to document income.

What credit score does a self-employed borrower need? +

The minimum is 660, the same as any Bank Statement HELOC borrower. There is no self-employment penalty on credit.

Is there a jumbo option for high-earning business owners? +

Lines go up to $1,000,000 and up to 90% of the property value, so owners of higher-value Florida homes can access a jumbo-sized line on bank statement income. The same 12-month documentation applies.