CEO on how self-employed borrowers can take advantage of HELOCs

“[Excelerate] has created a first lien HELOC that has the ability to do the same thing that we just talked about that a home equity loan and the HELOC will do, but it isn’t the first position it gives. There’s more flexibility because it’s deemed a non-QM loan that gives you more opportunities for borrowers to qualify than normally would. Typically, it would go to borrowers such as self-employed borrowers or gig economy borrowers that do not have standard W-2 income.”

However, Yoon advised against taking out a HELOC if you already have a low-interest, fixed first lien mortgage.

“The example would be if you refinanced your loan in 2020-2021, and you have a really good low fixed 30-year rate,” he said. “Would it make sense for you to go into our first lien HELOC? It would be better for you to just get a second lien HELOC. This is an opportunity where they could have the best of both worlds’ potential.”

You can listen to the full MPA Talk podcast episode here: Non-QM in an Evolving Real Estate Market, and share your thoughts with us in the comments below.