A business-purpose HELOC turns home equity into business capital: lines of $25K to $750K, rates typically 7 to 11 percent variable, up to 90 percent combined loan-to-value, and funding in about 5 business days. Stated income programs exist, and second through fourth lien positions can qualify.
For an owner with real equity, this is usually the cheapest six-figure capital available: rates a working capital advance cannot approach, at amounts a credit line rarely reaches.
Modern equity lines move at fintech speed: soft pull to prequalify, automated valuation on most homes, stated income programs for owners whose tax returns undersell them, and funding measured in days. The honest part matters too, and it is printed below.
Term sheet
- Lines
- $25K to $750K
- Cost
- 7 to 11% variable, tracks Prime
- Leverage
- Up to 90% combined loan-to-value
- Lien positions
- 2nd, 3rd, and 4th considered
- Income
- Stated income or bank statements accepted
- Time to fund
- About 5 business days
a.The right fit
- Owners with significant home equity funding growth at the lowest cost
- Replacing expensive advances with single-digit-rate capital
- Startups with equity but revenue too young for business underwriting
- Keeping business credit lines free while equity does the heavy lifting
b.Read before you sign
- Your home secures the line. Miss payments and foreclosure is the real, legal consequence. Borrow like that sentence is true, because it is.
- The rate is variable and tracks Prime. If Prime rises, your payment rises with it.
- Business-purpose equity lines sit outside consumer mortgage protections, which is exactly what enables stated income. Understand that trade before signing; we will walk you through it in plain English.
c.How it funds
Prequalify with a soft pull
Address, estimated value, mortgage balances, and stated income start the file. No hard inquiry.
Automated valuation
Most homes skip the appraisal entirely; larger lines get a lender-paid appraisal.
Sign and draw
Digital closing, then the line funds in about five business days. Draw what the business needs, when it needs it.
d.Plain answers
What makes a HELOC business purpose?
The funds must be used for business: starting, running, or expanding one. That classification is what allows stated income underwriting and faster closings, because consumer mortgage rules do not apply. It also means fewer consumer protections, which deserves a plain-English conversation, not fine print.
Do I need tax returns for a stated income HELOC?
No. Stated income programs verify your equity and credit rather than your tax returns. Stronger credit unlocks better pricing: roughly 650 plus for second lien positions and 700 plus for third and fourth positions.
How much equity can I actually unlock?
Take 90 percent of your home's value and subtract every mortgage balance on it. A $500K home with a $300K mortgage supports up to about $150K of line. We run the exact math with you during prequalification.
Will a business-purpose HELOC affect my personal credit?
Prequalification is a soft pull. The funded line may report on your personal credit depending on the lender, and payments are personal obligations secured by your home. We confirm reporting behavior for your specific lender before you sign.