A bank statement mortgage lender is a loan option for eligible self-employed borrowers to purchase or refinance a home. This product allows personal or business bank statements to calculate income without requiring tax returns.

• Must be the self-employed or same line of work for 2 years to qualify
• Available for purchase and cash-out or rate-term refinance
• Primary, second home, or investment properties
• Single-family, townhomes, or condos, rural
• 12 or 24 months of business or personal bank statements required
• 1099 income options available
• Loans up to $3 million

Texas 2 Year Self Employed Bank Statement Mortgage Loan Application Process

To apply for a Texas Bank Statement mortgage loan you would fill out our full mortgage application. Then provide your last 12 or 24  months’ worth of Texas Bank Statement mortgages from a personal or business Texas Bank account. Texas Bank Statement mortgage loans are processed through a manual underwriting process. This means the income is calculated by a person so the process can take 24 -48 hours.

Occupancy:
• Owner-Occupied & Second Home 
Property Types:
• SFR’s – Condos – Townhouses – 2 to 4 Units.
• Condotels – NO area restriction.
• Non-Warrantable condos.
Property Condition:
• Property must show “Pride of Ownership”.
Loan Terms:
• All loans are 5-year, 7-year, interim fixed, variable rate and 30 year fully
amortized products.
• Index – SOFR- Caps 2/2/6 – Floor = Start Rate.
• 30-year fixed option available. See add-on section.
Loan Amounts:
• $100K Minimum to $5 million Maximum – Owner Occupied.
• Loan amounts over $1 million need managing underwriters’ approval.
• Loan amounts greater than $2 million require 2 Appraisals.
Debt to Income (DTI):
• 55% max DTI with 24 months of bank statements, traditional Full-Doc and
LTVs up to 80%.
• 50% max DTI for other ATR tests, Interest Only, and LTV’s over 80%.
Interest Only Qualification: Must qualify fully indexed at 30 year
amortized.
Interest Only Term: 40-year loan / 10-year I/O term.
Income Documentation:
Full Doc – W-2’s & Paystub, 1040’s
Alt Doc – 12- or 24-months bank statements.
VOE Only Program – For NON-Self-Employed Borrowers Only:
• Verifiable VOE from Employer (not self-employed or self-prepared). The
VOE must be fully filled out and must include all income and averages.
The VOE must be signed and dated by the employer with accurate contact
info.
1099 Only Program: For Non-Self-Employed Independent Contractors
• 2 Years 1099’s
• Verbally verify accuracy of income on 1099’s
K-1’s Only Program:
• 2 Years K-1s
• CPA, certified tax preparer or enrolled agent attesting that K-1’s are
accurate & borrower self-employed for 2 years or more.
P&L’s Only Program – For Self Employed Borrowers Only:
• 2018 & 2019 Complete Profit and Loss Statement and 2020 Complete
YTD Profit and Loss Statement
• Professionally Prepared P&L’s – Verifiable letter from licensed CPA,
Certified Tax Preparer or Enrolled Agent attesting that they prepared the
P&L statements.

• Borrower Prepared P&L’s – Borrower to sign and date the P&L’s and
attest to the accuracy of the P&L’s via a handwritten, signed and dated
letter. And a verifiable letter from a licensed CPA, Certified Tax Preparer or
Enrolled Agent attesting the borrower prepared P&L’s are factual.
• Proof that the borrower has been self-employed for that business for 2
years.
Asset Depletion Program – Available for All Employment Types including
Retired/Unemployed:
• Qualifying income is based upon Total Assets Eligible for Depletion, less
down payment, less out of pocket closing costs, less required reserves,
divided by 60. This amount will be used as the monthly income. Debt
calculations will need to include all debts, not just housing debts.
Down Payments or Liquid Cash Reserves:
• All down payment funds MUST be sourced & seasoned in the last 60 days from 80.01-90% ltv.
• All down payment funds MUST be sourced & seasoned in the last 30 days up to 80% ltv.
• 100% Gift funds are acceptable up to 80% LTV – direct relative. $1M-$4M 50% can be gift.
Pre-Pay Note:
• No pre-payment penalty on ANY consumer products.
Ancillary fees paid at closing:
• $1,295 – Underwriting fee.
• $555 – Trust Review.
• $175 – Attorney Doc review for all TX  transactions.
Rate Lock:
• Rate floats until docs are delivered
Federal / State Tax Liens & Judgments:
• All income tax liens & judgments on credit must be paid through closing if
they are in excess of $2,500. All tax liens and judgments on title must be
paid.

Special Considerations By Texas 1 Year Self Employed Bank Statement Mortgage Lenders

• You can use either business or personal no commingling.
• Use 12 monthly business Texas Bank account or personal account depending on the lender.
• Deposits which are transferred from a business account into a personal account are OK.
• You may combine W2 income with Texas Bank Statement mortgage income as long as the income is not counted twice.
• Foreign Texas Bank Statement mortgages and Foreign Assets may be considered and must be translated into English.

Texas 1 Year Self Employed Bank Statement mortgage loan:

• You must prove self-employment for a minimum 1 years.
• Must provide proof of 12-month rental history or and 3-6 months future payments in reserves.
• You must have at least 10-20% down.
• You must have 4-6 months of PITI reserves
• You may qualify with as little as a 12-months Texas Bank Statement mortgage.
• You must have a credit score of 600 or above to qualify.
• The minimum loan amount is $100,000, and the maximum loan is $5,000,000.

What Documents Do I need for a 1 Year Texas Bank Statement mortgage Lender?

• Proof of income = Your most recent 12- or 24-months Texas Bank Statement mortgages Business or Personal Texas Bank Statement mortgages EVERY PAGE EVEN BLANKS in PDF labeled by month.
• PDF proof of down payment statement= 2 Months Texas Bank Statement mortgages to source funds..
• Proof of 2 years in the same business or line of work = To include business licenses or satisfactory evidence of self-employed to cover previous 24 months that could include: Articles of incorporation, 2 years of 1099 s, Business license more than 2 years or accountant letter stating more than 2 years in the same business.
• Obligations = Divorce decree, Child support or court order required payment statements. Only if applies.
• ID = Driver’s license, SS Card.
• Mortgage Statements = For rental properties including taxes and insurance statements. Only if applies.
• W2 or 1099= If you have separate W2 or 1099 income you would like to use to qualify please provide it.
• Purchase and Sale Contract. Only if you have one.
• Verified Timely Rent Payments- For Purchases Only – Please send front and back of checks clearing your account or wire transfers for the most recent 12 months to verity timely rental payments.

What Are the Advantages of a Self Employed For 1 Year Texas Bank Statement Mortgage Loan?

In summary, these are the advantages of a Texas Bank Statement mortgage loan:

• The lender can look at 12 or 24-month Texas Bank Statement mortgages.
• 30-Year Fixed Options.
• Texas Bank Statement mortgage only mortgage lenders do not need to look at your tax returns.
• Your income statements are made up of the average monthly income deposits.
• You can get a Texas Bank Statement mortgage home loan for as little as 10 percent down.
• You can do a cash-out refinance.
• You can borrow up to $5 million.
• Debt to income ratio up to 55 percent.

Eligibility Requirements for a 1-Year Self Employed Texas Bank Statement Mortgage Loan?

Eligibility for a Texas Bank Statement mortgage requires total deposits minus disallowed deposits. This amount is then divided by the number of Texas Bank Statement mortgages, whether it is the 12 or 24 months statement.

Another option is that if the co-borrower is a W2 employee you can use a hybrid of W2 and tax return income from the co-borrower and Texas Bank Statement mortgage income from the borrower or assets from the co-borrower and Texas Bank Statement mortgages from the borrower. Non-QM loans can use multiple sources of blended incomes to qualify.

Deposits that are disallowed in regards to a Texas Bank Statement mortgage loan include transfers between Texas Bank accounts and cash or large deposits, which can raise a level of concern and may require a letter of explanation.