Home › Mortgage Programs › Bank Statement Loans in Texas

Bank Statement Home Loans in Texas

For self-employed professionals and business owners, qualifying for a mortgage based on W-2s and tax returns doesn’t always tell the full story. A Bank Statement Loan provides an alternative path — using 12 to 24 months of business or personal bank deposits to verify income instead of traditional tax documents.
Bank Statement loans are especially popular in Dallas, Austin, and Houston among entrepreneurs, Realtors, and business owners who reinvest profits into growth — not payroll.
This program turns those deposits into real borrowing power.

Key Highlights

Use business or personal bank statements to document income.
Typically allows up to 90% loan-to-value (10% down).
Available for primary, second homes, or investment properties.
No tax returns, W-2s, or pay stubs required.
Competitive rates with flexible terms (fixed or ARM).

Qualification Overview

Lenders average monthly deposits over the past 12 or 24 months and apply an expense ratio to determine qualifying income. A minimum credit score of 620–660 is common, with DTI flexibility up to 50%.

Ideal Borrower

Self-employed individuals or 1099 earners.
Business owners with strong cash flow but high tax write-offs.
Borrowers looking to purchase or refinance outside conventional guidelines.

Let's Get You Pre-Qualified!

Full Name *

Email *

Phone *

Purchase Price

Down Payment %

Credit Score Range

By checking this box, I consent to receive transactional messages (such as appointment reminders, order confirmations, and account notifications) and marketing messages (such as special offers, discounts, and product updates) related to my account and services. Message frequency may vary. Message & data rates may apply. Reply HELP for help or STOP to opt-out.

Example Scenario

A San Antonio-based marketing consultant averages $20,000/month in deposits but reports limited taxable income. Using 12 months of bank statements, the borrower qualifies for a $600,000 home purchase with 10% down.

See how Bank Statement financing stacks up against 1099-Only, CPA / P&L and Asset-Depletion loan programs.

1099-Only

Use 1099 income to qualify — no W-2s needed
Great for contractors and commission earners
Flexible credit score requirements
Loans up to multi-million dollar levels
Ideal for self-employed professionals

Learn More

CPA / P&L

Qualify using a CPA-prepared Profit & Loss statement
No tax returns or W-2s required
Perfect for small business owners
Streamlined documentation process
Competitive Non-QM financing

Learn More

Asset-Depletion

Qualify using assets instead of income
Ideal for retirees and high-net-worth buyers
Use savings, investments, or retirement funds
No tax returns required
Flexible for primary, second, or investment homes

Learn More

FAQ: Bank Statement Loans

What is a Bank Statement loan?

A Bank Statement loan is a Non-QM mortgage designed for self-employed borrowers who want to qualify using their bank deposits instead of tax returns.
Lenders analyze 12–24 months of bank statements (personal or business) to determine your average monthly income, giving credit to your real cash flow rather than taxable income.

Who qualifies for a Bank Statement loan in Texas?

You may qualify if you are:

Self-employed or an independent contractor (1099, sole proprietor, LLC, or corporation)

Have been in business for at least 2 years

Can provide 12 or 24 months of consecutive bank statements showing consistent deposits

Have a credit score of 620+ (680+ preferred for best rates)

Can make a 10–20% down payment, depending on loan size and credit profile

This program is ideal for Texas entrepreneurs, Realtors, and small business owners who take legitimate tax deductions that reduce taxable income.

How does income calculation work?

Instead of W-2s or tax returns, the lender calculates your average monthly deposits from your bank statements:

Business bank statements: Typically, 50–70% of deposits count as income (depending on business type and expense ratio).

Personal bank statements: Often, 100% of deposits are counted, as they already reflect income distribution.
Your lender reviews each deposit pattern to establish a reliable qualifying income.

What documentation is required?

You’ll typically need:

12 or 24 months of bank statements (personal or business)

Business license or CPA letter verifying self-employment

Profit & loss statement (if requested)

Photo ID and proof of funds for down payment

Credit report for debt analysis

No tax returns or W-2s are required.

How much is the down payment?

Down payments typically range from:

10% for primary residences with strong credit

15%–20% for higher loan amounts or investment properties

25%+ for jumbo loans above $3 million

What credit score do I need?

Most lenders require a minimum score of 620–640, though some allow exceptions with larger down payments or reserves.
Borrowers with 700+ scores usually qualify for better pricing and flexibility.

Can I use personal or business statements?

Yes, both are accepted, but you’ll need to choose one type for underwriting:

Personal statements: Simpler, counts 100% of deposits.

Business statements: Often require an expense factor (50–70%) to calculate net income.
Your loan officer will help determine which option produces the strongest qualifying income.

Can I qualify using a mix of personal and business accounts?

Some lenders allow a hybrid approach if funds are clearly transferred between accounts, but most prefer one consistent source to simplify documentation.
A CPA letter may be used to clarify income structure if both are used.

Are Bank Statement loans fixed or adjustable rate?

Both options are available:

Fixed-rate loans (15, 20, or 30 years)

Adjustable-rate mortgages (ARMs) often 5/6, 7/6, or 10/6 ARM options
Some programs also offer interest-only payment periods for cash-flow flexibility.

What types of properties are eligible?

You can use a Bank Statement loan to purchase or refinance:

Single-family homes

Townhomes or condos

2–4 unit properties

Second homes or investment properties

Non-warrantable condos (with select lenders)

What are the loan limits for Bank Statement loans?

There are no standard conforming limits since these are Non-QM loans.
Most Texas lenders offer:

Loan amounts up to $3 million+, depending on credit and reserves

Jumbo and super-jumbo options for luxury or high-value properties

Do these loans require mortgage insurance (PMI)?

No. Bank Statement loans do not require PMI, even with less than 20% down.
This helps reduce long-term monthly payments, especially on larger loan amounts.

Can I use this program for refinancing?

Yes, you can refinance a Bank Statement loan to:

Lower your rate

Cash out equity for business or investments

Refinance from another Non-QM loan into more favorable terms

How long does it take to close a Bank Statement loan?

Most loans close within 25–35 days, depending on how quickly bank statements and documents are provided.
Experienced Non-QM lenders can move faster since these are portfolio loans.