HELOC for 1099 without 2 years income

searcher profile

April 16, 2024

by a searcher from University of Michigan - Ann Arbor in Atlanta, GA, USA

Long story short, I recently switched from W2 to 1099 in the middle of a HELOC application, so they denied me. I am working while searching, and was planning on using HELOC funds as equity injection on a deal. Is there anyone that allows access to home equity as a source of equity injection, but without setting up a HELOC? It seems silly that you have to get a HELOC from one bank just to convert the home equity into cash that is then used as equity injection/downpayment to another bank. Is there a way to use the home equity without having to do a HELOC?

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commentor profile
Reply by a lender
in United States
I've heard of HomeTap, as ^redacted‌ has mentioned. If you obtain a bank loan backed by the SBA to finance your business purchase, I don't believe an HEI would be classified as an eligible equity source per the SBA SOP, as the HEI would be tied to future conditions. I'll be following this thread to see what other feedback is provided.
commentor profile
Reply by a professional
from The American College in 5918 Clover Creek Ln, Salt Lake City, UT 84118, USA
KC - I came across a way that a 1099 person can be recharacterized as a W2 employee - without actually working for someone else. Check this out: https://bit.ly/48PBCI9
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