HELOC (Bank Statement/P&L/1099)

A HELOC for Self-Employed Borrowers

Angel Oak’s 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.

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700

Min Fico

(Up to 80% CLTV, Varies by income doc type)

85%

Max CLTV

(Minimum 720 FICO, Varies by income doc type)

Loan amounts up to

$750,000

(Business Bank Statements, P&L, and 1099)

Loan amounts up to

$500,000

(Personal Bank Statements)

Minimum initial draw

80%

Full doc

option available

First lien HELOC allowed
Owner-occupied, second homes, and investment properties
Interest-only payments during draw period
No restrictions on how funds can be used
Bank Statements – Qualified deposits divided by 12 or 24 months
- 12/24 Months Business Bank Statements. Ownership is 25%.
- 12/24 Months Personal Bank Statements. Maximum $500,000 line amount. Ownership is 25%.
P&L – 12 or 24 Month (bank statement support not required)
- Min Score 740; Max CLTV/HCLTV 80%; Min 2 yrs self-employed and same line of work; and minimum 50% owner of the business.
1099 – 12 or 24 Months
- Total 1099 plus YTD earnings, less business expense ratio, annualized
- Min Score 720; Max CLTV/HCLTV 80%. Min 2 yrs self-employed and same line of work; minimum 50% owner of the business.
- 12 Month 1099 – Max CLTV/HCLTV 75%
Loan terms: 15 years (3-yr draw, 12-yr repay)
Loan terms: 20 years (5-yr draw, 15-yr repay)
Please contact an Angel Oak Account Executive for complete qualification

We currently offer business-purpose loans for investment properties through approved clients, even if they’re not licensed in the subject property’s state.
Unlicensed states: AL, AR, CA*, CO, CT, FL, GA, IN, LA, MA, MO, MT, NC, NM, OH, OK, PA, SC, TN, TX*, UT, WA, WI
*California (CA): The originator’s company and the originator’s branch must hold active CA licenses. The originator is not required to hold an individual license.
*Texas (TX): HELOC owner-occupied transactions are not eligible.

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FAQ's

A Bank Statement HELOC is a Home Equity Line of Credit for self-employed borrowers that qualifies income using bank statements and provides revolving access to home equity.

Self-employed borrowers, investors, and homeowners with sufficient equity and documented deposit history may qualify.

Borrowers draw funds during a defined draw period and typically make interest-only payments during that time. Repayment terms follow program guidelines.

Primary residences, second homes, and investment properties may qualify based on underwriting standards.

A HELOC allows borrowers to access equity while maintaining their existing first mortgage structure and rate.

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.

Additional Program Options