This HELOC didn’t fit traditional income guidelines, despite strong cash flow.
The Situation
My client is a highly successful Realtor with multiple investment projects underway.
He was building a new home, acting as his own general contractor, and needed access to equity from his existing home to complete the project.
Why it Broke
One investment did not perform as planned, resulting in significant write-offs on his most recent tax return.
As a result, qualifying income did not meet standard HELOC guidelines when evaluated using tax returns, despite strong ongoing cash flow.
The Fix
My banker friend introduced the client to me, and I suggested using a niche bank-statement program to evaluate income for the HELOC.
After application, our automated system reviewed banking deposits and issued an approval for $490,000.
The Lesson
Some borrowers remain strong credit risks even when standard income calculation methods do not support approval.
The Takeaway
In specialty situations, bank deposits can be a viable method for determining qualifying income.
Work with Me
Do you have a deal that doesn’t work internally?
Reply to this email with the scenario and I’ll take a thoughtful second look.
Or call me directly at 616.298.2743
You’re receiving this because we’ve connected professionally around complex lending or structuring scenarios that required a second look.