SELF-EMPLOYED HELOC SECOND MORTGAGE
OBTAIN CASH OUT FROM THE EQUITY ON YOUR PRIMARY OR SECOND HOME
WITHOUT TOUCHING YOUR 1ST MORTGAGE ALREADY IN PLACE !
What is a Self Employed Heloc Second Mortgage?
Homeowners can access cash from their home equity without touching the existing
1st Mortgage at the low rate. We qualify you by calculating 12 or 24 months of your
personal or business bank statements to show proof of income. Tax returns are not
How much can I Borrow on a Self
Employed Heloc Second ?
The amount you can borrow depends on the
remaining equity value of your home, minus
the 1st mortgage you owe. The amount of the
second mortgage can vary, but between 65%-
100% of the equity is a good starting point.
Benefits of a Self Employed Heloc Second Mortgage?
Borrowers can use a second mortgages to finance large purchases such as a new
vehicle, second home, down payment of an rental income investment property,
consolidate debt, pay for their child’s college education, renovate their home or who
just need cash.
How do I qualify for a Self Employed Heloc Second Mortgage?
To qualify, your income is calculated by adding up all the deposits in your business
and/or personal account for either a 12 or 24-month period, and then dividing the
total by the same number of months. This method is very effective because it allows
their income to be calculated based on gross deposits. It is important to note that the
final qualifying income for buisnesses deposits is less than direct personal deposits for
Is a Self Employed Heloc Second Mortgage the same as a Stand
Alone Second Mortgage
YES! Usually a Stand Alone Second are advertised using tax returns to qualify not
bank statement deposits. At 1st Florida Lending, we offer both Bank Statement
Deposit and (“full doc stand alone second mortgages”) using gross tax return and W2
income at a lower rate.
Self-Employed Second Mortgage Loans are popular with borrowers listed below
Qualifying for a Self-Employed Bank Statement Loan
Bank Statement Loans are utilized by a wide range of self-employed professionals, including
Business owners, Freelance employees, Consultants, Contract workers, Independent
contractors, Sole proprietors, Online retailers, Economy workers, Realtors, Entrepreneurs and
many other types of self-employed people, etc... Being self-employed it can be difficult to obtain
a mortgage. The facts are that most self-employed would agree that their tax returns don't really
show their true income as many tend to write off many expenses over that a W-2 wage earner.
Regardless of what you make for income, tax write-offs and deductions reduce your taxable
income that can affect your debt-to-income ratios. As a result, your net taxable income (after
deductions) may disqualify you for a traditional mortgage for purchasing and/or refinancing !
Q. How do we calculate income utilizing personal bank statements or business bank
Personal Bank Statement Loan: Income received for your goods and/or services is payable
to your personal name and deposited into your personal bank account.
Business Bank Statement Loan: Income received for your goods and/or services is payable
to your business name and deposited into your business bank account.
Determining Qualifying Income
We use total bank statement deposits to establish a monthly qualifying Income. Eligible
income is calculated differently between a personal bank statement and business bank
Personal Bank Statement Loan: We count 100% of your deposits which is utilized in
Business Bank Statement Loan: : We count up to 85% of your deposits which is utilized in
Permanent Resident Aliens
Non-Permanent Resident Aliens
Minimum Loan Amount $200,000
Max Loan Amount $1,000,000
Irrevocable Trusts or Land Trusts
Qualifying Income Documentation
Full Doc - 1 Year Tax Returns
Stated - 12 months Bank Statements
Cash out may be used for reserves
No Gifts of equity allowed
Eligible Property Types
Primary Home: No reductions
2-4 Multi Family Unit
Condos: FNMA Warrantable
Non-Warrantable Condo ( case by case
Ineligible Property Types
Rural/Ag or Vacant Land
Condition C5 or C6
AMC Appraisal Only