Bank Statement Loans in Austin & Texas

The expense factor is what changes the income number, and the paper behind it matters. A consultant with no employees and no office is not the same expense business as a company with payroll and a shop. The letter that supports a lower factor has to come from the preparer who filed the return, it has to address the expense categories, and it cannot disclaim its own accuracy.

The account matters too. Business receipts that land in a personal account count in full only when a couple of months of the business account show where the money started. If the accounts are mixed, the business factor applies. I sort the accounts and the expense evidence before I pick the program, because the better price and the better income calculation are rarely the same lender.

A bank statement loan uses eligible personal or business deposits as the main record for a self-employed income calculation in Texas. The lender still reviews where the deposits came from, expenses, ownership, and whether the income is steady, along with credit, debts, funds, and the property. The deposits are not qualifying income by themselves.

No. Transfers between your own accounts, borrowed funds, refunds, and one-off deposits without a business source come out first. Then the expense factor hits what remains. On business deposits the starting factor is often 50%, lower with a qualified expense letter, or a schedule based on the type of business and how many people it employs. A deposit larger than a typical month needs a written explanation.

A bank-statement program may use eligible deposits as the main income record. That does not mean the file will never need a tax return, a transcript, or something else. Business verification, an explanation of a deposit, and other documents can still be required for that file.

Yes. Deposits that came from a separately documented business account can count in full, with no expense reduction. The lender usually wants two or three months of the business account to prove the source. If business receipts and personal money share one account, that account is treated as a business account and the expense factor applies. Ownership rules differ too. Several programs want 25% ownership for the personal-statement method and 50% for the business-statement method.

No. The programs I place want two years of self-employment. The statement period is separate. One program will look at another 12 months of statements when the first 12 do not show a steady pattern.

Yes. On the strongest primary-residence purchases, loan-to-value can reach 90%, and cash-out refinances can reach 80%, with loan amounts that run into the millions on the right file. For a Texas rental, also compare DSCR financing based on the property's rent.

Usually, yes. You are paying for the documentation flexibility. It is worth comparing when your tax returns understate what the business earns. If the tax returns already support the loan, a conventional mortgage is usually the cheaper path. I compare both on the same day, with the same assumptions.

Yes. You can use 12 or 24 months of deposits, or a 1099-only program that starts from gross 1099 income with a flat expense factor. The 1099 route is often simpler. Deposits can qualify you for more if other income is coming in.

You can still qualify. A personal account that also receives business receipts is treated as a business account, so the expense factor, often 50% to start, applies to the eligible deposits. Separate accounts usually qualify you for more. Business money moved into a documented personal account can count in full.

A 12-month review uses the more recent year. Twenty-four months can show two business cycles and a seasonal pattern. The lender looks at the trend and whether it can continue. Neither period is automatically better, and the statement period is separate from how long you have been self-employed.

Minimum credit on the programs I place starts around 620 to 660, depending on the program, and the lower end comes with less leverage. Stronger credit is what opens the highest loan-to-value.

As little as 10% down on a primary-residence purchase for the strongest files, which is 90% loan-to-value. Lower credit, a larger loan, or a cash-out refinance needs more equity. Cash-out generally tops out at 80% loan-to-value.

Once your documents are in, we review them and issue a pre-approval letter. After that, timing depends on the income review, the appraisal, and title. Clean statements and a quick explanation of a large deposit keep it moving. I map the documents up front so a missing page does not show up late.

We identify which accounts receive customer payments and which receive transfers. If business receipts move to a personal account, the review has to avoid counting the same income twice. The program decides how expenses and ownership are documented for each account.

An expense statement from an independent CPA, enrolled agent, or CTEC preparer can replace the default factor with your actual ratio, subject to a floor, often 10% to 15%. It has to be prepared by the person who filed your returns, it has to address the expenses, and it cannot carry a disclaimer. A letter that says approximately, or to the best of my knowledge, gets rejected.

After the first conversation, the path we pick may need complete statements for the review period, proof that the business is yours and operating, an explanation of an unusual deposit, expense information, and records for the money you will bring to closing or hold in reserves. Anything else depends on the file. I will give you a secure way to send it.