Self-employed California homeowners can pull equity with a bank-statement HELOC or home equity loan that qualifies on deposits instead of tax returns. Expect to keep some equity in the home (often 20%+), a mid-600s+ score, and 12–24 months of statements.
Why self-employed owners get turned down for equity
Traditional HELOCs and home equity loans underwrite off tax returns, so write-offs shrink the income lenders will count. Bank-statement equity programs solve this by counting your actual deposits.
How a bank-statement HELOC works
The lender averages 12–24 months of personal or business bank deposits (with an expense factor) to establish income, then lets you borrow against your equity — typically keeping a cushion of equity in the home. No tax returns or W-2s required.
Uses and alternatives
Common uses: consolidating debt, funding your business, or a cash-out refinance alternative. If you'd rather replace the first mortgage, a cash-out refi on a bank-statement basis may price better. We compare both.
Frequently asked questions
Can I get a HELOC if I'm self-employed with write-offs?
Yes. Bank-statement HELOC and home-equity programs qualify you on deposits rather than net taxable income, so write-offs don't disqualify you.
Do I need tax returns for a self-employed home equity loan?
No — bank-statement equity programs use 12–24 months of statements instead of returns.
How much equity do I need?
Most programs require you to keep a cushion (often around 20%) of equity in the home after the loan. The exact amount depends on the lender and your credit.