Updates from Andy at Neighborhood Loans
By Andrew Augustyniak | Neighborhood Loans
Unlock Your Equity with the Equity Advantage HELOC & HELOAN
For real estate investors and self-employed borrowers, accessing capital without traditional income verification roadblocks can be a game-changer. The Equity Advantage HELOC and HELOAN programs offer a streamlined alternative by qualifying borrowers based on bank statement revenue rather than tax returns. This innovative lending approach ensures greater flexibility, making it easier to tap into your property’s equity for growth and investment.
Program Overview
Loan Type: Home Equity Line of Credit (HELOC) and Home Equity Loan (HELOAN)
Loan Amount: Ranges from $150,000 to $500,000
Occupancy: Available for owner-occupied, second homes, and investment properties (up to 10 financed properties allowed)
Maximum Combined Loan-to-Value (CLTV):
Up to 90% for owner-occupied and second homes
Up to 85% for investment properties
Lien Position: 1st and 2nd lien options available
Debt-to-Income (DTI) Requirements:
Maximum 50% DTI with a 700+ FICO and $3,500 residual monthly income
Maximum 45% DTI in other scenarios
Why Use Bank Statement Revenue for Qualification?
Traditional loan programs often rely on tax returns, which may not accurately reflect the true income of self-employed borrowers or real estate investors. The Equity Advantage HELOC/HELOAN allows you to qualify using 12- or 24-month bank statement revenue, providing a more accurate and accessible way to leverage your financial health.
Key Benefits
Flexible Income Documentation: Instead of requiring tax returns, borrowers can use business or personal bank statements to demonstrate income.
Higher CLTV Limits: Up to 90% CLTV for primary residences, giving borrowers more access to their equity.
Interest-Only Options: Choose a 3- or 5-year interest-only draw period, helping to manage cash flow efficiently.
Ideal for Investors: Borrowers with multiple properties (up to 10 financed) can use this program to access working capital for expansion and upgrades.
Fast Access to Funds: Initial draw of at least 50% of the line amount allows quick access to capital for new investments or renovations.
Strategic Uses for Investors
Property Acquisitions: Use the HELOC as a revolving credit line to seize investment opportunities quickly.
Renovations & Upgrades: Leverage equity to improve rental properties and increase cash flow.
Debt Consolidation: Pay off higher-interest debts with a lower-rate HELOAN or HELOC.
Business Expansion: Ideal for self-employed investors who need liquidity for their next project without tax return limitations.
Final Considerations
While this program offers flexibility, borrowers should be aware of the early termination penalty (5% if closed within 12 months) and ensure they meet the reserve and DTI requirements. Additionally, appraisal requirements vary depending on loan size and CLTV, ensuring properties are properly valued.
Take Advantage of This Unique Opportunity
If you’re an investor or self-employed borrower looking for an easier way to access your home equity, the Equity Advantage HELOC and HELOAN programs provide a powerful solution. Reach out today to explore how you can leverage this program to expand your portfolio and achieve your financial goals.