Client who has a lot of property and a lot of depreciation gets turned down for a home equity line by Chase. They came to me as a referral from one of the financial planners that refers me their clients for refis. The financial planner asked if it was normal to not count income on a rental property in qualifying for a Heloc. I told her no, normal depreciation is a “paper loss”, not a cash loss and therefore is not an actual expense affecting the cash flow of the property of the borrower. So after 2 months of waiting and then getting turned down for their home equity line of credit extension and expansion, we were able to get the client the cash they need and avoid the increase in payment because the home equity draw period was over and the amortization was kicking in.
If you know anyone who is self-employed or owns a lot of property and wants a home equity line of credit have them call me. I can help!