No tax returns
No 1040s, no Schedule C, no 4506-T. The deposits in your bank account are the income calculation — your CPA can keep optimizing your tax bill without it costing you the house.
Bank statement loans for Texas self-employed buyers.
Qualify on 12 to 24 months of bank deposits — not the bottom line of your tax return. Built for business owners whose write-offs make conventional underwriting say no.
- 12–24 months business or personal bank statements
- Up to 90% LTV with 660+ FICO
- No tax returns, W-2s, or 4506-T required
A self-employed mortgage that uses deposits as income.
A bank statement loan is a Non-QM (Non-Qualified Mortgage) program that lets self-employed borrowers qualify based on the cash actually flowing through their business or personal accounts — not the net income on their tax return. The lender averages deposits over 12 or 24 months, applies an expense factor (typically 50%, sometimes lower for service businesses with documented overhead), and uses that figure as your monthly qualifying income. For business owners who legitimately write off vehicles, equipment, home office, and travel, this often produces a qualifying income two to three times higher than what Schedule C shows.
How a bank statement loan goes from inquiry to keys.
- 01
Soft-pull pre-qualification
We pull a soft credit report — no FICO ding — and ask which accounts you want to use. Most files use either business statements (with an expense factor) or personal statements (no expense factor, business deposits transferred in).
- 02
Statement review
You send 12 or 24 months of statements as PDFs. We total qualifying deposits, exclude transfers and one-time items, and calculate the qualifying monthly income before the file ever sees an underwriter.
- 03
Full pre-approval
We collect the proof of self-employment (business license, CPA letter, or two years on a Secretary of State filing), assets, and ID. We issue a pre-approval letter at the qualifying loan amount.
- 04
House hunting
You shop with a Non-QM pre-approval. We coach your agent on how to present the financing — bank statement loans close on the same TRID timeline as conventional, despite the alt-doc label.
- 05
Contract, appraisal, and conditions
Once your offer is accepted, we order the appraisal and submit the file to a Non-QM underwriter. Conditions list typically focuses on deposit explanations and self-employment continuity.
- 06
Clear-to-close and funding
We send the closing disclosure at least three business days before close per TRID. You sign at title, funds wire, and you get keys.
Built for Texas business owners who actually make money.
Most Texas small-business owners — restaurant operators, contractors, real estate agents, salon owners, freelancers — write off enough on Schedule C that their tax return makes them look like they barely break even. Conventional underwriters look at line 31, do not see enough income, and decline. A bank statement loan looks at the same business through the only lens that actually matters: the cash flowing through the bank. We structure these files weekly and know exactly which lender to send each scenario to.
A bank statement loan is the right tool when:
- You are self-employed (1099, sole prop, LLC, S-corp) for at least two years
- Your tax returns understate your real cash flow because of legitimate deductions
- You have 12 to 24 months of clean, deposit-rich business or personal statements
- You are buying a primary residence, second home, or investment property
- Your credit is 660 or higher and you have a 10–20% down payment
Why bank statement beats conventional for self-employed buyers.
Higher qualifying income
Most self-employed borrowers qualify for two to three times the loan amount they would get on a conventional file using tax returns. Same business, same deposits — different math.
Up to 90% LTV
Strong-credit, well-documented files can go up to 90% LTV — meaning as little as 10% down on a primary residence. Most files run 80% LTV; 90% is reserved for the cleanest deposit profiles.
Primary, second home, or investment
Bank statement programs work across occupancy types. Most of our buyers use them for a primary residence; we also write them on second homes and 1–4 unit investment properties.
Personal or business statements
Your choice based on which presents better. Personal statements (no expense factor applied) often qualify higher if you transfer most business deposits to personal anyway.
Same TRID timeline as conventional
Bank statement loans close in 30–35 days from contract — same regulatory timeline as FHA or conventional. Non-QM does not mean slow.
12–24
Months of bank statements (your choice)
Bank statement loan questions, answered.
How does the lender calculate my qualifying income?
For business statements: total all qualifying deposits over the chosen period (12 or 24 months), exclude transfers, refunds, and one-time items, then apply an expense factor (typically 50%, sometimes lower for service businesses with documented low overhead). Divide by the number of months. That number is your monthly qualifying income. For personal statements: same total minus transfers, no expense factor — but the deposits must be sourced to the business. We run this calculation with you before submitting the file so there are no surprises.
Can I use 12 months instead of 24?
Yes. 12-month programs exist with most Non-QM lenders. The trade-off: 12-month options typically price slightly higher (an eighth to a quarter point) and may cap LTV a tier lower than the 24-month equivalent. We quote both and let you decide.
What if I run my business through several different accounts?
You can usually combine up to two or three business accounts into the qualifying calculation. The accounts have to be in the business name (or your name as sole proprietor) and we have to be able to demonstrate the deposits are not duplicated across accounts (no double-counting transfers).
Why is the rate higher than a conventional loan?
Bank statement loans are a Non-QM product. They do not meet the Qualified Mortgage definition under Dodd-Frank because they use alternative income documentation. Lenders price the additional risk with a rate premium — typically 1% to 2% above a comparable conventional loan. For most self-employed borrowers the trade is worth it: they get the house they actually qualify for instead of being declined.
Do I need a CPA letter?
Most lenders want either a CPA letter confirming your self-employment for two-plus years, OR an alternative — business license, Secretary of State filing showing two-plus years of operation, or two years of 1099s in the business name. We coordinate this with your CPA early in the process.
Will I be able to refinance into a conventional loan later?
Often yes. Two common paths: (1) keep your tax write-offs more modest for a year or two and refinance into conventional once your tax returns support the income, or (2) keep the bank statement loan and refinance into a lower-rate bank statement loan when rates drop. We model both at origination so you know the exit strategy.
Self-employed and ready to stop being told no?
Bank statement loan requirements at a glance.
- FICO 660+ (best pricing at 720+)
- Two-plus years self-employed (CPA letter, business license, or Secretary of State filing)
- 12 or 24 months of business or personal bank statements
- Down payment from 10% (90% LTV) to 25%+ (investment property)
- Two months reserves on primary residence; six-plus on investment
- No tax returns, W-2s, or 4506-T required
- Owner-occupied, second home, or 1–4 unit investment
Bank statement vs Conventional vs FHA at a glance.
| Bank Statement | Conventional | FHA | |
|---|---|---|---|
| Income docs | 12–24 mo bank statements | Tax returns + W-2s + pay stubs | Tax returns + W-2s + pay stubs |
| Minimum FICO | 660 | 620 | 580 (or 500 with 10% down) |
| Minimum down | 10% (90% LTV) | 3% (first-time) | 3.5% |
| Best for | Self-employed with tax write-offs | Strong-credit W-2 buyers | First-time and credit-rebuilding buyers |
Ready to move on a Bank Statement Loan?
Get a soft-pull pre-approval in minutes. No credit hit, no surprises.
Other ways we close
P&L Statement Loans
Self-employed alt-doc using a CPA-prepared profit & loss instead of bank statements.
Learn more1099 Income Loans
For independent contractors and commissioned sales — qualify on 1099s, not full tax returns.
Learn moreConventional Loans
If your tax returns actually support the income, conventional usually beats Non-QM on rate.
Learn more