read this carefully:

Banks will look at your qualifications which are determined by your debt to income ratio ( which means how much you make and compare to how much debt you owe,although they have stated income programs, or no income programs) where you dont have to show or have income.
your loan to value, (which means how much equity will be in your house after the loan amount is determined, the lower percentage the better usually under 70%) and they will also look at your middle credit score and credit history. Oh and they will also look as if you have any kind of reserves i.e 401k IRA investments or a nicely padded savings account.

Dont go to a Retail Bank got to a Mortgage broker they have wholesale rate ( Mortgage Brokers get cheaper rates from Banks for the costumer, costumers get the retail rate if they go straight to the Bank) Some times it cost a little more to go straight to a broker but in the long run you will get the best rate long term and save more money vise getting a cheap higher rate that will end up costing you more in the life of the loan.
Another thing get your self a business license before you do this that might help in the loan process, plus it doesnt cost much and get a good CPA. As a home and business owner you have to start thinking write off write off writte off!!

Usually banks look at the benefit of the loan, if you are not already set in a long term fixed loan I would refinance and get cash out for the home improvements and get into a fixe rate. HELOCS Prime rates are at a 8.25 prime and it might be adjustible. if you refi you will have a lower interest rate. Youd have to talk to a loan officer or retail lender to look at your scenario. Plus you can Open a small HELOC to jump start your business. man I wish I knew who you were to walk you in the right direction before you get riped pff by some shark loan officers out there. what ever you do dont let anyone rush you it is a very important decision which will affect you in the years to come.there is a lot of different options for you and the best way to determine those options is by looking at your overall situation.

got to

pelicanlending.com

and see your options and use the mortgage tools, if you seek more help fill out an appication with contact information, or email pelican. my name is Chris, and I can at lease help you by explaining things to a T. no obligation no committement, just a free consultation. After all this is a very important life decision I cant stress that enough! and shop around dont go for the fisrt guy that promeses you the world, in this business if it sounds to good to be true it probably is.

good luck

Chris M diaz
Mortgage Consultant
US MARINE