> ## Documentation Index
> Fetch the complete documentation index at: https://docs.myfundingmachine.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Understanding HELOC eligibility

> Read the HELOC prescreen, calculate ownership-adjusted business income, and keep eligibility confirmation current.

The HELOC product card shows what Funding Machine can determine from the
available report and application. It does not represent lender approval.

| Result | Meaning | Next step |
| - | - | - |
| Not eligible | The score is below 640, or confirmed answers fail a program requirement | View the reason; update incorrect information |
| Potentially eligible | Available prescreen signals pass | Confirm property, equity, and income |
| Needs income information | DTI cannot be calculated | Add verified income |
| DTI above limit | Stated-income DTI is above 45% | Verify personal income and the applicant's share of business income |
| Homeownership unconfirmed | No active mortgage evidence confirms current ownership | Confirm the property; a paid-off home may still qualify |
| Property needs confirmation | The submitted state is unavailable or needs review | Confirm the state of the property securing the line |
| Needs update | The credit or income source changed, an older confirmation lacks source details, or ownership was never captured | Review saved answers and re-check eligibility |

The card shows the status, an estimate when available, and the next action.
Open the info icon for mortgage evidence, screening details, and all decline
reasons. Screening uses the information already on file; the form prefills
available answers so you only need to verify or complete them.

## Business ownership and qualifying income

Enter average monthly income for the **whole business**, then enter the
applicant's ownership percentage between 0% and 100%. Do not reduce the
business income by ownership before entering it; the form applies ownership.

**Qualifying monthly business income = monthly business income × 25% ×
(ownership percentage ÷ 100).**

For a business with \$20,000 monthly income:

| Ownership | Qualifying business income |
| - | - |
| 100% | \$5,000/month |
| 50% | \$2,500/month |
| 25% | \$1,250/month |
| 0% | \$0/month |

This contribution is added to verified personal monthly income. DTI divides
monthly credit-report debts by that combined monthly income. The configured
maximum is 45%. Missing income is shown as unavailable, not a passing DTI.

## Property and amount estimates

The form uses 85% of estimated home value for a primary residence or 70% for a
non-primary residence, then subtracts the mortgage and additional lien balances.
The minimum estimated line is $25,000, or $35,000 in Texas. State, occupancy,
credit, and income requirements also apply.

Report-found mortgages prefill the form, but confirm that each balance belongs
to the property being used. An address alone does not verify ownership or value.
The form shows an estimate as you enter the answers. After an eligible
confirmation, the product card shows the estimated line and allows selection.

Estimates are operator-facing and do not contribute to MFM processing-fee
calculations. The applicant confirmation link captures the same ownership and
financial answers without displaying underwriting verdicts or line estimates.

<Warning>
  All screening and estimates are preliminary. Final eligibility, amounts, and
  terms are determined by the lender.
</Warning>


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