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Bank Statement HELOC

A HELOC for Self-Employed Borrowers

  • Loan amounts up to $750,000 (Business Bank Statements)
  • Loan amounts up to $500,000 (Personal Bank Statements)
  • First lien HELOC allowed
  • Owner-occupied, second homes, and investment properties*
  • Full doc option available
  • Minimum initial draw 80%
  • Interest-only payments during draw period
  • No restrictions on how funds can be used**
  • Loan terms:

    15 years (3-yr draw, 12-yr repay)

    20 years (5-yr draw, 15-yr repay)

    25 years (10-yr draw, 15-yr repay); not allowed on bank statements

    *Owner occupied program is not available in TX

Min Fico

660

(Up to 80% CLTV)

Max LTV

90%

(Minimum 680 FICO)

Angel Oak Mortgage Solutions’Home Equity Line of Credit HELOC program enables borrowers to tap into their home’s equity while retaining their first mortgage. With this product, borrowers receive a revolving line of credit up to the approved credit limit. There are no restrictions on how borrowers can use the funds, and they are able to make interest-only payments during the draw period.**

 

*Must draw at least 80% of loan amount at time of closing, with a minimum draw amount of $100k.

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Bank Statement HELOC Guide

FAQ's | The HELOC Opportunity: Your Quick Guide

WHAT IS A HELOC?
A HELOC is a revolving line of credit secured by your home. You can borrow, repay, and borrow again - similar to a credit card – up to your approved limit.
HOW IS IT DIFFERENT FROM A HOME EQUITY LOAN/CLOSED-END SECOND MORTGAGE?
A home equity loan gives you a lump sum with a fixed rate, while a HELOC is flexible and works like a credit line with a variable or fixed rate option.
HOW MUCH CAN I BORROW?
It’s typically based on the equity in your home. Angel Oak allows up to 90% of the home’s value, minus your current mortgage balance. CLTV is based on Occupancy and Credit Score.
HOW DO I ACCESS MY HELOC FUNDS?
Borrowers can set up online access directly through Shellpoint’s website by following on-screen prompts. Shellpoint Customer service number: 855-263-8899.
WHEN CAN I DRAW FROM MY HELOC AFTER I CLOSE?
After closing, there is a 90-day freeze period on withdrawals; you can draw after the 90 days.
CAN I USE IT FOR ANYTHING?
Yes! Common uses include home renovations, debt consolidation, education costs, or as an emergency fund.
WHAT IS THE DRAW PERIOD VS. REPAYMENT PERIOD?
Draw period: Is either 10yr, 5yr, or 3yr, where you can borrow and only pay interest. - 25 yr term (10yr draw, 15yr repay - allowed on Full Doc Only) - 20 yr term (5yr draw, 15yr repay) - 15 yr term (3yr draw, 12yr repay) Repayment period: After the draw ends, you repay the principal and interest over 12 or 15 years.
ARE THERE PENALTIES FOR EARLY REPAYMENT?
No prepayment or termination fees.
WHAT HAPPENS IF I SELL MY HOME?
The HELOC must be paid off when you sell your home, just like your primary mortgage.
IS THE INTEREST RATE FIXED OR VARIABLE?
Angel Oak’s HELOC is a variable rate and will adjust to the published Prime Rate.
ARE THERE ANNUAL FEES?
No annual fee or maintenance fee.

What is a Home Equity Line of Credit?

A Home Equity Line of Credit (HELOC) is a flexible financial product that allows homeowners to leverage the equity in their homes as collateral for a revolving line of credit. This credit line, similar to a credit card, enables borrowers to access funds as needed during a specified draw period. The amount available for borrowing is determined by the difference between the home’s current market value and the outstanding mortgage balance. HELOCs consist of a draw period where funds can be accessed and a subsequent repayment period. Borrowers can use the funds for various purposes, and the loan is secured by the home’s equity.

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