Texas Self Employed Use Bank Statements For Mortgage Qualifying
Texas self employed home buyers are now able to use bank statements for income. Self employed Texas mortgage applicants can qualify for a bank statement loan using the average deposits for 12 or 24 months of business or personal bank statements as proof of income without having to provide any tax returns. We understand your financial profile can be different from borrowers who earn a regular salary. That’s why we specialize in Bank Statement Loans. You can qualify based on your bank account balances. We’ll use a proportion of your revenue shown on your last 12 months of bank statement as a measure of your income.
Is a Bank Statement Mortgage Right For You?
A bank statement mortgage lenders lets you document your income by showing us your bank statements for income instead of traditional tax forms or pay stubs. These type of loans are sometimes called a “stated income loan.”
A stated income loan may be right for you if any of the following describe you:
- 1099 Contractor
- Business owner
US Mortgage Lenders Provide Bank Statement Mortgage Lenders
US Mortgage Lenders is a licensed Texas mortgage broker. Unlike most Texas mortgage providers that only offer a few products, we partner with over 70 differentTexas banks, Texas mortgage lenders, Texas private equity funds, and investors nationwide and offer a wide range of Texas loan programs. We have the ability, flexibility, and Texas relationships with different investors that enable us to find the unique loan that fits your unique situation.
How To Qualify for a Texas Bank Statement Mortgage?
Within this webpay you will find general bank statement mortgage lenders guidelines that may vary slightly based upon your personal situation. So, we encourage you to Apply to have a free no obligation discussion.
- Down Payment – 10-20% down. Possibly more if you have a bankruptcy or bad credit.
- Credit Scores – Some lenders may allow scores as low as 550. We suggest speaking with one of our bank statement lenders to find out what your personal scenario is.
- You must be self employed – usually for a minimum 12 months but 2 years in the same line of work.
- Bank Statement Requirements – Most lenders require you to provide 12-24 months’ worth of bank statements. They will use your average monthly deposits and will use that as income.
- Self Employed Questionairre – It is possible that your lender may require a bank statement questionairre to understand your business.
- Assets – Your assets must be fully verified.
- Property Types – Primary Single family, Town Home, Villa, Condos, Second home and investment
TEXAS BANK STATMENT MORTGAGE PROPERTY TYPES:
● SFRs, Condos, (Warrantable & Non-Warrantable), PUDs, 2-4 units, Townhomes
● No below average properties
● Minimum $50,000 equity required
INELIGIBLE TEXAS BANK STATMENT MORTGAGE PROPERTIES:
● Site>10 Acres, High-rise Condo in Dade/Broward Counties, Florida (8+ stories)
● 5 ARM or 30 Year Fixed
● 10 Year/40 Year Term IO
● Index is 30 day SOFR
● Caps are 2/2/5 (2% Initial Change/2% Period Adj/5% Lifetime)
● Margin 3.75%
● All loans require impounds for tax and insurance
HOUSING HISTORY/CREDIT EVENT SEASONING:
● Housing history—0x30. For housing delinquency, see pricing adjustments.
● Bankruptcy/Foreclosure—3 year seasoning. For less than 3 years, see
● Short Sale/Deed-in-Lieu/Modiication—2 year seasoning. For less than 2
years, see pricing adjustments.
● Forbearance <1 Year—See Loan Program Description
● Max of 50% DTI, 55% allowed with LTV up to 80%, $4,000 disposable and 0x30
● Residual Income—$1,500 per household plus $500 1st child, $250 thereafter.
Child maximum $1,500.
● Must be off market for 6 months.
● Maximum 300%. (First time home buyer 250%)
TAX LIENS AND JUDGMENTS:
● All tax liens and judgments must be paid at closing.
● Collections and charge offs need to be paid off except:
– Medical Collections.
– Collection accounts older than 2 years.
CREDIT SCORE/TRADELINE REQUIREMENTS:
● 3 trade lines reporting for ≥ 12 month; or 2 trade lines reporting for ≥ 24 months with activity
in the past 12 months. Borrower must have housing history or one of the trades must have
$5,000 high credit/limit.
● Credit Score The middle score of the primary wage-earner is used for pricing and LTV purposes.
● Full Doc – 1 or 2 years W-2, paystubs, tax returns or K1’s.
● Alt Doc – 12 or 24 months personal or business bank statements or 1099’s, 12-month cash low.
3 months business bank statements, Proit and Loss (P&L) Only.
Min. 2 years history of self employment required. Also available for gratuity earners
● Asset Xpress—100% of amount needed to amortize loan plus monthly debts for 60 months OR
125% of the new loan amount.
● Asset Assist—Assets divided by 60 is added to income. Max 50% of total income.
● Lease agreements in lieu of schedule E are treated as ALT Doc.
ASSETS / RESERVES:
● <75% LTV—None Required; >75% LTV—6 mos.; Loan Amount >$2M—12 Mos.
● Cash-out may be used to satisfy reserve requirement .
● Gift funds are allowed:
>80% LTV Borrower must contribute 5% own funds;
≤80% LTV 100% of down payment and closing costs may come from gift funds.
Note: Gift funds may not be used to satisfy reserves requirements
● Owner Occupied and 2nd Home
● First-time Homebuyers allowed, see program guidelines
● HomeXpress will allow the application of Lender Credit to be used for recurring and nonrecurring closing costs.
● Any overages will be applied to principal reduction.
● Lender Credit can be used on Lender Paid and Borrower Paid Loans
● Lender Credit cannot be used to pay broker compensation.
● Purchase and Rate & Term Rei: 2nd Appraisal Required for loan amounts >$2M
● Cash-out Rei: 2nd Appraisal Required for loan amounts > $1.5M
Bank Statement Mortgage Lenders Loan Pros and Cons
- Helps self employed borrowers to qualify for a mortgage without using tax returns to prove income
- Can be done in some instances with only 10% down
- Bank statement mortgage rates are just slightly higher than conventional rates
- Up to 55% DTI – Debt to income depending upon your scenario and your reserves
- Typically no pre-payment penalties on primary homes
Texas Bank Statement Mortgage Lenders Cons
- You need to be self employed for a minimum of 2 years
- If your credit score is extremely low, it may result in a higher down payment
- Rates are slightly higher than conventional but not much more
- Not all lenders offer this program
- Not available in government loans such as FHA, VA or USDA
Texas Bank Statement Mortgage Lenders:
Below is a list of some of the best Texas Bank Statement lenders that offer bank statement loans in Texas: