A business-purpose HELOC is one of the easiest cheap-capital products to qualify for — because it's secured by your home equity, underwriting leans on your property and bank statements rather than perfect credit or years of tax returns. Here's exactly what lenders look for.
1. Home equity (the big one)
This is the foundation. You need to own a property with available equity to borrow against. Most programs allow up to 85% combined loan-to-value (CLTV) — meaning your existing mortgage plus the new HELOC can total up to 85% of the home's value. The more equity you have, the more you can access, up to about $750,000.
2. Credit score
A 600 minimum is typical, with 700+ getting the best pricing. Because the loan is backed by real estate, credit matters less than it would for an unsecured business loan — many owners who get declined elsewhere qualify here.
3. Business revenue
Lenders want to see the business can support the payment. A common floor is around $20,000/month in revenue, with $50,000+ preferred. There's often no minimum time in business required.
4. The documents — and the self-employed shortcut
This is where the business HELOC shines. Instead of tax returns, qualification is typically bank-statement based, which is a huge advantage for self-employed owners whose tax returns understate their real cash flow. You'll generally need:
- A basic credit application
- The last 4 months of business bank statements
- Your personal annual income
- A driver's license
- Proof you own a property with available equity
- A correct cell number and email (for the soft-pull verification)
No tax returns for income verification — that single difference is why so many self-employed owners can qualify for a HELOC when they couldn't get a conventional loan.
The quick checklist
- ✅ Own a property with equity (up to 85% CLTV)
- ✅ Credit score 600+ (700+ for best rates)
- ✅ ~$20K+/month revenue ($50K+ preferred)
- ✅ 4 months of bank statements (no tax returns)
The only way to know your exact number is to check — and it costs nothing to find out, since prequalification is a soft credit pull with no impact to your score.