HELOC vs Home Equity Loan vs Cash Out Refinance:
How To Access Your Home Equity
There are three main ways to turn your home equity into cash. A HELOC is a revolving line of credit you draw from as needed, usually at a variable rate, while keeping your current mortgage. A home equity loan gives you a lump sum at a fixed rate, also on top of your current mortgage. A cash out refinance replaces your current mortgage with a larger one and gives you the difference in cash. The right choice depends on whether you want flexible access, a fixed lump sum, or to reset your whole mortgage.
Before we recommend a product, we look at your goal first
If you have built equity in your home, you have real options, and the best one comes down to what you are trying to do. Want a flexible reserve you can tap over time for renovations or as a safety net? A HELOC fits. Need a set amount right now with a predictable fixed payment? A home equity loan fits. Already sitting on a rate worth replacing, or want one payment instead of two? A cash out refinance may make the most sense. We do not lead with a product. We start with your goal, your current mortgage, and your comfort with the payment, then match you to the right tool. There's a loan for U, and the key is choosing the right way to reach it.
Not sure which one fits your goal? Let's match the right tool to what you need.
No impact on credit score
No hidden costs
No documents required
Compare Your Three Options
A quick look at how a HELOC, a home equity loan, and a cash out refinance stack up across the things that matter most.
Choose a bank statement loan if you:
Traditional Mortgage
Who it is built for
Self employed borrowers, business owners, 1099 earners
W2 employees with steady documented income
How income is proven
12 or 24 months of personal or business bank statements
Two years of tax returns, W2s, recent pay stubs
Tax returns required
No
Yes
Credit score
Commonly starts around 620
Varies by loan type: VA may go as low as 500 with certain lenders, FHA may start around 580, and conventional commonly starts around 620
Cash needed to get in
Often requires more money down than traditional options
Varies by program: VA, FHA, and conventional may offer lower down payment paths depending on eligibility
Loan amounts
Often available up to 3 million and beyond
Conforming limit caps most loans lower
Best when
Your write offs make your taxable income look smaller than your real income
Your income is fully documented on paper
Tax returns not showing your full income? Compare your options in a few quick questions.
What is a bank statement loan?
A bank statement loan is a non QM mortgage that lets self employed borrowers qualify on the actual cash flowing into their accounts rather than the income reported after deductions. Instead of handing over tax returns, you provide 12 or 24 months of bank statements, and the lender averages your deposits to establish a qualifying income. For a business owner who writes off vehicles, equipment, home office, travel, and payroll, this is often the difference between a denial and a clear to close.
One thing worth being clear about: a bank statement loan is not automatically easier because of credit. The credit floor is similar to conventional. The real advantage is the income method. It can let a self employed borrower qualify on deposits instead of the taxable income left after write offs.
What is a traditional mortgage?
A traditional mortgage, usually a conventional or government backed loan, qualifies you on documented income. The lender pulls two years of tax returns, W2s, and pay stubs, then calculates your debt to income ratio off the income reported to the IRS. For a W2 employee this is clean and straightforward. For a self employed borrower, the same deductions that lower your tax bill also lower the income a traditional lender will count, which is exactly where strong earners get denied.
Why self employed borrowers get denied by traditional lenders
It is the write off trap. The tax code rewards you for reducing taxable income, so a smart business owner deducts aggressively and shows a modest net profit. A traditional underwriter only counts that net number. So a contractor who clears strong revenue can look, on paper, like they barely qualify, even with money in the bank and a thriving business. The bank statement loan was built to solve this exact problem by looking at deposits instead of deductions.
Already been told no by a bank? That does not have to be the end of the conversation.
No impact on credit score
No hidden costs
No documents required
Choose a bank statement loan if you:
- Are self employed, a business owner, or a 1099 earner
- Write off enough that your tax returns understate your real income
- Have strong, steady deposits but a modest net profit on paper
- Were already denied or lowballed by a traditional lender
Choose a traditional mortgage if you:
- Earn a W2 salary with income fully documented
- Have two clean years of returns that reflect your true earnings
- Want the lowest possible rate and qualify comfortably on paper
The UHome difference
I built UHome for exactly this borrower. Most of my business is closing loans the big lenders will not touch, and self employed approvals are at the heart of that.
I have approved a bank statement borrower on a cash out refinance, taken a one year self employed borrower to the closing table, and structured files other lenders called impossible.
As an independent broker I am not stuck inside one bank’s overlays. I shop your file across a network of non QM lenders to find the program that actually fits how you earn. You are not a square peg. There is a loan for you, and my job is to find it.
Bank statement loans in Georgia
UHome Mortgage helps self employed borrowers, business owners, 1099 earners, and investors explore bank statement loan options across Georgia, with licensing in Alabama and Texas as well. If your tax returns do not show your full income, I can review whether a bank statement loan or a traditional path makes more sense for your situation. Whether you are buying in the Atlanta metro or refinancing a home you already own, the goal is the same: qualify you on how you actually earn.
Frequently asked questions
Questions we get every day, answered the way we’d want them answered. Still stuck? Call 404-919-5533.
Yes. A bank statement loan lets you qualify using 12 or 24 months of bank deposits instead of tax returns, which is ideal for self employed borrowers.
Yes. Bank statement loans are available for purchases, refinances, and cash out refinances, so you can use one to buy or to tap equity you already have.
Yes. They are a recognized non QM product offered by established lenders, designed for borrowers whose income does not fit traditional documentation. They are not a loophole, they are a different and fully legitimate way to verify income.
Non QM loans can carry a higher rate than conventional financing because they serve borrowers traditional underwriting turns away. For many self employed buyers, getting approved at all is the priority, and I work to structure the most competitive terms available for your file.
The first step is a quick review of your deposits and your goal. Answer a few short questions and I will help you see whether a bank statement loan or a traditional path fits best, with no commitment to lend.
What happens after you submit
No pressure. No commitment to lend. Just a smarter starting point.
There is a loan for U. Let us find it.
Serving self employed borrowers in Georgia, Alabama, and Texas. Based in Georgia.
