Home Equity/HELOC financing for someone self-employed

This is my first venture into investing, and I’m finding it much harder to get financing than I expected.

I currently own my own home, and have about $30k in equity that I’d like to cash out. The problem I keep running into is that I’m self-employed, but have only been so for about 4 months now, and most lenders seem to want at least 2 years of self-employment, even on no-doc loans.

I make pretty good money (about $4500/mo, on average), and have a credit score around 670. I have trouble producing much documentation, other than bank statements, so a no-doc is really the only way I can go (I think).

Has anyone else been through this? I’d love some advice or a recommendation on lender - especially if the lender also does hard-money lending, because I’d love to find a bank I can rely on and stick with them. Thanks so much!

You did a good job of informing us of your situation. There was just a couple points you left out.

  1. Average 2 month balance of liquid assets? Bank, IRA, Stock.

  2. You said there is $30,000 in equity and wanted all of it. I guess that means 100% financing. What is the 1st mortgage balance and expected value?

  3. When were you given your score? Was this from mortgage broker or someting pulled online?

A bank wont have a hard money option so it would be best in developing that relationship with a mortgage consultant instead. They’ll have access to many lenders and should have researched those with loans for investors, including hard money.

In response to your questions:

  1. I don’t have much in the way of liquid assets, unfortunately. My average 2 mo. balance in my bank account is probably around $2k. My fiance, however, has a trust fund with about $22k in it, but since the house is only in my name (and his credit score is abysmal - around 500, I think), I’m looking to get the loan in just my name. Unless, of course, there’s a way to include him without shooting the interest rate through the roof.

  2. The mortgage balance is currently a little under $116k, and we purchased the home about 4 months ago for $145k (but the official appraisal was $147k).

  3. I was given the 670 score 3 days ago from a loan officer, and I also have a credit score monitoring service with my credit card. Thus, I’m PRETTY sure it’s around 670. :slight_smile:

The ideal situation would be to get 100% of the equity, but I think we could make our deal swing if we could get at least $20000 of it.

Again, any help or advice would be sincerely appreciated.

Fresna42 - If you are interested in researching various lenders in your area and what they can offer, let me know.