A bank statement loan is a type of mortgage that allows self-employed borrowers to verify their income based on their personal or business bank statements, rather than traditional methods like tax returns, W-2s, or paystubs. Bank statement loans are generally used by self-employed individuals, small business owners, or independent contractors. Borrowers do not have to own 100% of the business. Our Bank Statement program provides a loan solution to help underserved credit-worthy self-employed borrowers who otherwise would not qualify for a home loan.
Clear Mortgage’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.
*must draw at least 80% of loan amount at time of closing, with a minimum draw amount of $100k
- Loan amounts up to $500,000
- First lien HELOC allowed
- Owner-occupied, second homes, and investment properties
- Full doc option available
- Minimum initial draw 80%
- Interest-only payments during draw period
- No restrictions on how funds can be used
- Loan terms:
15 years (3-yr draw, 12-yr repay)
20 years (5-yr draw, 15-yr repay)
25 years (10-yr draw, 15-yr repay); not allowed on bank statements
*Owner occupied program is not available in TX
*Program only allowed on investment properties in TN
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.
