A straight answer
Can I get a HELOC if my write-offs make my income look too low?
The direct answer
Yes, I offer bank statement HELOCs that qualify self-employed owners on 12 months of personal or business bank statements instead of the net income on tax returns. Your write-offs lower the net income on the return, and they do not lower the deposits on your statements.
I'm Zach von der Linden (NMLS 1652805), a mortgage broker with West Capital Lending, based in San Clemente. I put the financing together, and I tell you plainly which program fits. I work with homeowners in California, Utah, Oregon and Arizona.
Zach von der Linden, mortgage broker and Branch Manager, West Capital Lending · NMLS 1652805
Wholesale pricing · California, Utah, Oregon and Arizona
5.0 across 66 reviews on Experience.com (read on 2026-09-24) · Text reaches Zach directly · Last updated 2026-10-19
Write-offs shrinking your income on paper? Text me roughly what your deposits run each month, what you owe on the home and what it is worth.
This situation is worked out in a short conversation. No credit pull happens from a conversation. The options check is a soft credit pull with no impact on your credit score for the first look. Texts go to Zach's cell.
Why do write-offs make my income look low to a lender?
The IRS lets a business deduct expenses that are "both ordinary and necessary" (IRS Publication 334).
Each deduction lowers the net income on your return.
A HELOC qualified on tax returns starts from that net income.
So the deductions that lowered your tax bill also lower the income the lender counts.
Do any write-offs get added back?
Some do, on loans sold to Fannie Mae. For a sole proprietor, Fannie Mae's guide says depreciation, depletion, business use of a home, amortization and casualty losses "must be added back to the cash flow analysis" (Fannie Mae Selling Guide B3-3.6-03).
I check whether your returns work once those add-backs are counted. The page on write-offs shows one return read two ways.
How does a bank statement HELOC read the same year?
It reads 12 months of deposits.
I use your personal or your business account, whichever shows the larger average monthly deposits over those 12 months.
Business-account deposits get an expense factor.
A transfer between your own accounts is not business income.
I also offer a HELOC qualified on a profit-and-loss statement.
It counts your profit, not losses, based on what runs through your bank accounts each month.
The lender still verifies you can repay.
Your first mortgage stays as it is, and the line sits behind it.
Once the line funds, you use the money however you choose.
What should I send first?
- Your last two tax returns, if you have them handy, so I can check the add-backs.
- Which account your business deposits land in, personal or business.
- A rough value for the home and your first mortgage statement.
- How much you want to access, and what it is for.
The full method is on the self-employed HELOC page.
Questions people ask next
Should I try my tax returns first?
Yes. I check whether your returns work once the add-backs are counted. If they do not, the bank statement HELOC reads your deposits instead.
Do my write-offs count against me on a bank statement HELOC?
The statements show deposits, and your write-offs do not change them. On a business account, the deposits get an expense factor.
Will a one-time equipment purchase stop me qualifying?
Not on a bank statement HELOC, because a purchase does not lower your deposits. On a loan sold to Fannie Mae, the guide says a nonrecurring loss "such as an extraordinary one-time expense" should not be included in the cash flow analysis, and depreciation on Schedule C is added back. Whether your purchase is read as nonrecurring is the lender's call on the file, and not every deduction is added back.
Do I need to change how I file my taxes to get a HELOC?
No. I qualify you on 12 months of personal or business bank statements instead of the net income on your returns. Questions about what to deduct belong with your tax preparer.
Does asking about this affect my credit?
A conversation does not pull credit. A full application does.
What clients say
Zach was so easy to work with. He made a stressful situation into a very positive experience for us and did push us one way or another. He listened to what we hoped we could accomplish and made it happen.
Word for word from Experience.com. Read all reviews.
Which page is this?
Write-offs shrank my income. Yes. A lender counts the net income on your returns and adds back part of what you deducted, so the first step is a calculation. If the returns still fall short, I offer loans qualified on 12 months of bank statements, at a cost.
My write-offs made my income look too small. Can I still get approved?
That page has the worked example with the numbers, the tradeoffs, and the same next step: a text to Zach.
Sources and checked dates
Sources: Confirmed by Zach, October 19, 2026 (9:29 PM PT, via the Chief of Staff) (checked 2026-10-19) · Fannie Mae Selling Guide, B3-3.6-01, General Information on Analyzing Individual Tax Returns (06/05/2019) (checked 2026-10-19) · Confirmed by Zach, September 27 and October 17, 2026 (restated for these pages) (checked 2026-10-19) · Confirmed by Zach, September 2026 (checked 2026-09-27) · Confirmed by Zach, October 17, 2026 (checked 2026-10-17) · IRS Publication 334 (2025), Tax Guide for Small Business (checked 2026-10-19) · Fannie Mae Selling Guide, B3-3.6-03, Income or Loss Reported on IRS Form 1040, Schedule C (04/01/2009) (checked 2026-10-19) · Confirmed by Zach, October 2026 (checked 2026-10-19) · West Capital Lending HELOC registration page (referral id omitted here) (checked 2026-09-09).
Show each claim on this page, what it depends on, and the date it was checked (10)
| What we say, and what it depends on | Source | Checked |
|---|---|---|
| Zach offers financing for these self-employed situations: a HELOC to pay off an IRS tax lien; mortgage income for S corporation owners (W-2 wages, K-1 income and distributions); a HELOC to pay off business loans and business credit cards; a divorce buyout for a self-employed homeowner; a DSCR cash-out refinance of a rental qualified on its rent; business funds for a down payment; a HELOC after a drop in self-employed income; combining a spouse's W-2 income with bank statement income; a mortgage when the business pays a debt in the owner's name; seasonal business income; bank statement loans when real business expenses are lower than the expense factor; and a mortgage when a self-employed owner moves a business into California, Utah, Oregon or Arizona. He arranges each as a broker. | Confirmed by Zach, October 19, 2026 (9:29 PM PT, via the Chief of Staff) | 2026-10-19 |
| Fannie Mae Selling Guide B3-3.6-01, General Information on Analyzing Individual Tax Returns (06/05/2019): "Any nonrecurring loss (such as an extraordinary one-time expense) should not be included in the cash flow analysis; therefore, in developing the borrower's qualifying income, the lender should adjust the borrower's cash flow by the amount of any nonrecurring loss." "In analyzing a self-employed borrower's personal income, the lender should focus on earnings trends and the actual sources of the income, not just on the total amount of the income." "The lender should not include any income that does not appear to be stable or likely to continue." | Fannie Mae Selling Guide, B3-3.6-01, General Information on Analyzing Individual Tax Returns (06/05/2019) | 2026-10-19 |
| Zach offers bank statement HELOCs that qualify self-employed owners on 12 months of personal or business bank statements instead of tax returns, using whichever account shows the larger average monthly deposits; business-account deposits get an expense factor. He arranges the line as a broker and works with homeowners in California, Utah, Oregon and Arizona. | Confirmed by Zach, September 27 and October 17, 2026 (restated for these pages) | 2026-10-19 |
| Zach arranges a home equity line for self-employed owners that can be qualified on bank statements, which reads deposits instead of the net income on filed returns. | Confirmed by Zach, September 2026 | 2026-09-27 |
| Zach offers loans qualified on 12 months of bank statements instead of tax returns, at any loan size. He qualifies the borrower on either the personal or the business bank account, whichever shows the larger average monthly deposits over the past 12 months, and business-account deposits get an expense factor. | Confirmed by Zach, October 17, 2026 | 2026-10-17 |
| IRS Publication 334 (2025), Tax Guide for Small Business (page last reviewed or updated April 30, 2026): "To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your field of business. A necessary expense is one that is helpful and appropriate for your business." | IRS Publication 334 (2025), Tax Guide for Small Business | 2026-10-19 |
| Fannie Mae Selling Guide B3-3.6-03, Income or Loss Reported on IRS Form 1040, Schedule C (04/01/2009): "The following recurring items claimed by the borrower on Schedule C must be added back to the cash flow analysis: depreciation, depletion, business use of a home, amortization, and casualty losses." | Fannie Mae Selling Guide, B3-3.6-03, Income or Loss Reported on IRS Form 1040, Schedule C (04/01/2009) | 2026-10-19 |
| Once a HELOC Zach offers funds, the borrower can use the money however they want, with no use restrictions. | Confirmed by Zach, October 2026 | 2026-10-19 |
| On the West Capital Lending HELOC registration page, checking qualifying rates and terms uses a soft credit pull that does not affect the credit score; continuing and submitting an application requests a full credit report, which is a hard pull that may affect credit. | West Capital Lending HELOC registration page (referral id omitted here) | 2026-09-09 |
| Zach's answers for the self-employed HELOC answers. The bank statement HELOC he offers has no set minimum time in business, so a business under two years old is fine. An unfiled or extended tax year does not matter for the bank statement HELOC, because tax returns are not part of how it qualifies; no extra documents are needed for it. He also offers a HELOC qualified on a profit-and-loss statement; it counts profit only, not losses, based on what runs through the borrower's bank accounts each month. He takes 1099 and gig earners with no business entity and no business account: any account the borrower receives income into can be used, as long as it gets frequent deposits, and those deposits count toward qualifying income. | Confirmed by Zach, October 2026 | 2026-10-19 |
Written for and accountable to: Zach von der Linden, Mortgage broker and Branch Manager, West Capital Lending.
Last updated 2026-10-19.
Verify him: NMLS Consumer Access, ID 1652805 · 66 reviews on Experience.com.
Sources for product claims are listed on this page, with the date each was checked.
Write-offs making your income look low?
No credit pull happens from a conversation. The options check is a soft credit pull with no impact on your credit score for the first look. Text Zach first so he can review your situation. The online check covers one HELOC program, not every option he may be able to arrange. Texts go to Zach's cell.