Deephaven Mortgage Launches Equity Benefit HELOC

According to a release from the North Carolina-based company, the self-employed HELOC offers an option for self-employed borrowers to qualify using 12 months of personal or business bank statements in lieu of tax returns. Deephaven manages the credit process, from disclosure to financing.

Like Deephaven’s previously released Equity Advantage Closed-End Second product, the new Bank Statement HELOC allows borrowers to pay off debt, renovate homes or invest in real estate without giving up existing low-interest mortgages.

“The housing market remains strong,” Tom Davis, Deephaven’s chief sales officer, said in a statement. “American homeowners have more than $11 trillion in available home equity; trillions of dollars more in credit card, auto, and student loan debt; and the need to renovate their aging homes.

“Our bank statement HELOC helps Deephaven partners respond, with alternative documentation options for underserved borrowers such as the self-employed.”

The equity benefit HELOC offers loan amounts ranging from $50,000 to $400,000 and allows debt-to-income ratios up to 50%. The maximum combined loan-to-value ratio is 90% for primary residences, 85% for second residences and 75% for investment properties.

Borrowers can qualify using 12 months of personal or business bank statements, or provide complete documentation. The product has a variable interest rate with a repayment term of five years, a term of 30 years and a depreciation term of 25 years. Minimum FICO the scores are 660 for primary and secondary homes and 700 for investment properties.