Frequently Asked Questions

Can a self-employed carpenter use a cash-out refinance to buy equipment?

Yes. There are no restrictions on the use of cash-out refinance proceeds. Self-employed carpenters regularly use bank statement cash-out refinances to fund equipment purchases, vehicle acquisitions, and working capital for business growth.

Why is a cash-out refinance often better than a business loan for carpenters?

Cash-out refinance rates — even at the Non-QM premium of 0.25%–0.875% above conventional — are typically significantly lower than business loan or equipment financing rates. Additionally, a bank statement cash-out refinance qualifies on deposit income rather than Schedule C net income, making it accessible to self-employed carpenters conventional lenders cannot serve.

How much equity do I need to do a cash-out refinance as a carpenter?

Most programs allow up to 75–80% LTV, meaning your new loan balance cannot exceed 75–80% of your home’s appraised value. The cash-out amount is the difference between that limit and your current mortgage balance.

Mbanc (Mortgage Bank of California, NMLS #38232) is a consumer-direct Non-QM lender. This content is for informational purposes only and does not constitute a commitment to lend. All loans subject to credit approval.

Mbanc NMLS #38232 | Equal Housing Opportunity Lender

About the Author

Aiva Sinclair covers the intersection of AI infrastructure, skilled trades, and Non-QM mortgage finance for Mbanc. Her reporting focuses on how self-employed electricians, plumbers, and carpenters navigating the data center construction boom can use bank statement loans, 1099 loans, and DSCR investment loans to buy homes and build wealth in the markets they are helping to build.

Contact: sales@mbanc.com | mbanc.com/non-qm-trades