Unlock Your Home Equity: Secure Cash Flow in Uncertain Times

Uncertain Economy.

Today, news stories highlight tariffs, trade wars, and government spending cuts. Consequently, economic uncertainty grows. Small business owners face risks from rising unemployment and recession fears. Homeowners have seen their equity grow, yet a shrinking economy challenges small enterprises.

Cash Reserves

A cash reserve provides security during uncertain times. However, building one quickly can be difficult. Instead, you can unlock cash from your home equity even without up-to-date tax filings.

Bank Statement Home Equity Line of Credit

A Bank Statement Home Equity Line of Credit may be your solution. Let me share a real case study. A Los Angeles small business owner owns a home valued at $1 million. Her first mortgage is $719,000. She pays $5,718 monthly. Her cash reserve is nearly $50,000, and her credit score is 705. She did not file her most recent tax returns. Previous returns showed a $13,000 monthly income. Some of her business relies on government contracts. Therefore, she feared losing income if a recession hit. She recalled the uncertainty during the Covid shutdown.

A review of her 12-month bank statements showed a monthly deposit of $23,000. As a result, she qualified for a $150,000 HELOC. She had to withdraw 80% of $150,000 for at least 90 days. During that period, she paid only interest. Without a prepayment penalty, she repaid the balance after 90 days. Additionally, she used $30,000 to clear high-interest credit card debt. During the draw period she only has to pay interest on the amount if any that is outstanding.

Now, she has a five-year draw period for future cash needs. During this time, she can use funds for business or personal investments or any other reason even a vacation. After the draw period she has 15 years to repay the balance. At any time, she can pay off the full amount penalty-free.

Cash Reserve and Peace of Mind

This case study shows how a Bank Statement HELOC offers cash and peace of mind in uncertain times.

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