A bank statement HELOC or home equity loan qualifies self-employed California homeowners on 12–24 months of deposits instead of tax returns, letting you tap equity even when write-offs shrink taxable income. Expect to keep an equity cushion and a mid-600s+ score.
Why standard HELOCs turn self-employed owners away
Traditional HELOCs use tax returns, so deductions lower the income counted. A bank-statement equity program uses your deposits instead.
How it works
The lender averages 12–24 months of deposits (with an expense factor), then extends a line or lump-sum against your equity while keeping a cushion (often ~20%) in the home.
HELOC vs cash-out refi
If your first mortgage rate is low, a bank-statement HELOC keeps it and adds a second. If not, a bank-statement cash-out refinance may be cheaper. We compare both. See self-employed home equity loans.
Frequently asked questions
Can I get a HELOC without tax returns?
Yes — a bank-statement HELOC qualifies you on deposits instead of returns, which suits self-employed owners with write-offs.
How much equity can I access?
Most programs let you borrow up to a limit that keeps a cushion (often around 20%) of equity in the home, based on credit and deposits.
HELOC or cash-out refinance — which is better?
Keep a low first-mortgage rate with a HELOC; replace a high one with a cash-out refi. We compare both for your situation.