Bank Statement Loans Texas: Steps to Qualify [2023]

Bank Statement Loans Texas
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Amresh Singh, CEO - HomeAbroad  by Amresh Singh

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Aspiring homeowners in Texas facing challenges due to the lack of traditional income verification documents can now celebrate. Bank Statement Loans Texas offers an alternative solution, allowing individuals to secure a mortgage based on different methods of proving creditworthiness, like bank statements, P&L statements, asset documents, etc.

In this comprehensive guide, we will learn more about the workings of Bank Statement Mortgages and explain why they are an excellent option for those with unconventional income sources.

Is it Worth Buying a House in Texas?

Can I get Mortgage in Texas without Traditionally Verifying My Income?

Absolutely! Many lenders offer home loans with flexible terms to accommodate different borrowers. A popular choice in this regard is the Bank Statement Loan, which allows applicants to obtain a mortgage by providing alternative methods of proving their creditworthiness.

By exploring the details of Bank Statement Mortgages, you can take advantage of this opportunity to get the financing you need for your home.

Submit your bank statement loan scenario.

Bank Statement Loans Texas: Everything You Must Know!

  • Definition: Bank Statement Loans are a specialized type of mortgage designed to cater to individuals with unconventional income sources.
  • Who is it for: These individuals may include self-employed individuals, gig workers, freelancers, and independent contractors, among others.
  • Key features: Unlike traditional loans that rely on pay stubs and W-2s for income verification, Bank Statement Mortgages assess an applicant’s repayment ability based on 12-24 months of bank statements. Lenders carefully analyze the average monthly deposits and withdrawals from these statements to determine the applicant’s average monthly income. Borrowers must also present P&L statements, asset documents, cash reserves, etc., as alternate methods to verify the income.
  • Property types: These flexible loans can be utilized for various purposes, such as purchasing a primary residence, a second home, or investment properties.
  • Other details: Bank Statement Mortgages typically carry slightly higher interest rates than traditional mortgage loans. Borrowers must also make a minimum down payment of around 10-20% and maintain credit scores of 600 and above. The loan limits for Bank Statement Mortgages can vary based on the lender’s policies and the borrower’s financial profile.

Find the best bank statement loan lenders.

Personal Bank Statement Loan Vs. Business Bank Statement Loan

Let us compare and contrast personal bank statement loans and business bank statement loans:

  • For personal bank statement loans, lenders use the borrower’s personal bank statements (usually for the past 12 to 24 months) to assess their gross monthly income and determine their ability to repay the loan. Whereas, for business bank statement loans, lenders use business bank statements.
  • Borrowers must have a good credit score and meet other standard mortgage eligibility criteria to qualify for a personal bank statement loan. Whereas business bank statements loans may have additional eligibility criteria, such as the age and profitability of the business, to assess the sustainability of the income source.

How does Bank Statement Mortgage Work?

Let us understand this by taking an example.

John Green is a self-employed photographer with a fluctuating income. Here is what will happen when he seeks Bank Statement Mortgage to buy a house in Texas:

  1. Eligibility Assessment: John approached XYZ lender for a mortgage. Instead of traditional income verification, the bank reviewed his bank statements from the last 12-24 months to determine his eligibility. They also considered his credit history, debt-to-income ratio, and cash reserves.
  2. Supplementing Documentation: Once John’s eligibility was confirmed, XYZ lender requested supplementary documents to support his application. These included asset documents and his photography business’s profit and loss statements.
  3. Customizing Loan Terms: After analyzing the provided documentation, the lender approved John’s application. They discussed the terms and conditions, including interest rates, loan duration, down payment, and monthly repayment structure.
  4. Closing the Deal: With all terms agreed upon, XYZ lender disbursed the approved mortgage amount to John’s bank account. He was now ready to move forward with purchasing a new home.

Connect with the best bank statement loan lenders.

Requirements For Bank Statement Loans Texas

Category Requirements
Proof of Credit Although lenders offer the flexibility of documents, they need some proof to ascertain your creditworthiness. For this reason, it is essential to have credit scores of 600 or above.
Debt-to-Income Ratio It is important to have a DTI of 45 or lower to increase your chances of qualifying for the loan.
Loan-to-Value Ratio For refinancing, the LTV ratio should be at least 90%.
Documents Along with 12-24 months of bank statements, the lenders will require Profit & Loss statements if you are self-employed for the past 2 years. They might also require asset documents, cash reserves, etc.
Down Payment For Bank Statement Loans, borrowers need to make a larger down payment of 10-20%. The exact percentage varies from lender to lender.
Ownership For business bank statements, the borrowers can own as little as 50% of the business, and for personal bank statements, it could be 25%.
Requirements For Bank Statement Loans

Get Bank Statement Mortgage in Texas with these Easy Steps

Here is a comprehensive guide for applying for a Bank Statement Mortgage: Texas

Step 1: Research and Identify Lenders

  • Conduct thorough research to find lenders specializing in Bank Statement Mortgages in Texas.
  • Find reputable lenders with favorable terms, interest rates, and customer reviews.
  • You can contact HomeAbroad to ensure a hassle-free process of finding a lender who understands your unique financial needs and offers the best mortgage solutions.
  • At HomeAbroad, we aim to connect you with experienced and trusted lenders who offer bank statement loans and flexibility like no other.

Find the best bank statement loan lenders.

Step 2: Gather The Required Documentation

  • Obtain 12-24 months of bank statements to demonstrate income stability.
  • If self-employed, prepare Profit & Loss (P&L) statements.
  • Gather asset documents, cash reserve proof, identification papers, and any additional materials the lender requests.

Step 3: Consultation with Lender

  • Please schedule a consultation with your chosen lender to understand their specific requirements and expectations.
  • Seek clarification on any doubts and discuss the application process in detail.

Step 4: Submit the Application

  • Complete the application form accurately and provide all necessary documents promptly.
  • Maintain open communication with the lender and address any inquiries promptly.

Step 5: Review Loan Terms

  • After applying, await the lender’s review and approval process.
  • Once the application is approved, carefully review the loan terms, including interest rates, loan amount, down payment, and loan duration.

Step 6: Closing Formalities

  • Complete the necessary closing formalities with precision and attention to detail.
  • Ensure all required paperwork is submitted promptly.

Step 7: Loan Disbursement

  • The lender will disburse the approved loan amount upon completing the closing formalities.
  • Expect the funds to reflect in your bank account within a few days.

Bank Statement Loan Texas Alternatives

Here are some alternate loan options for Bank Statement Mortgages:

Loan Type Requirements
DSCR Loan Debt Service Coverage Ratio (DSCR) is a loan program for self-employed individuals and real estate investors. It uses the borrower’s monthly gross income from investment property to assess their debt service capacity. To be eligible, a good credit score (620 or higher) and sufficient income to cover the loan (DSCR ratio of 1 or above) are required. A down payment of 20-25% of the loan amount may also be necessary.
No-Income Verification Loan This loan is for self-employed people who don’t have traditional proof of income. Instead, they use other methods, like bank statements, to check if you can afford the loan.
You need a good credit score (620 or more) and should be able to make a higher down payment (20-25%).
Asset-based Mortgage This loan is different from traditional ones. Instead of focusing on your income, the lender looks at your assets (like stocks or real estate) to secure the loan.
You should have a good credit score (620 or more) and be able to make a down payment of 20-25%.
Self-employed Mortgage This loan is for self employed borrowers, like contractors or business owners. Instead of using tax returns, they check your cash flow and income from 1099 forms.
You need a high credit score (620 or more) and be ready to make a significant down payment (20-25% or more).
Alternatives To Bank Statement Loans

What are Some Advantages and Disadvantages of Bank Statement Loan Program

Advantages of Bank Statement Mortgage Disadvantages of bank Statement Mortgage
Bank statement mortgages involve less complex income documentation, leading to quicker application and approval processes compared to conventional mortgages. If the borrower makes a smaller down payment, private mortgage insurance (PMI) may be required, adding to the overall cost of the mortgage.
Borrowers with various income streams can utilize all relevant bank accounts to demonstrate their repayment capacity, potentially increasing their borrowing power. Bank statement mortgages often involve a more complex underwriting process compared to conventional mortgages, as alternative income verification methods are used.
Some bank statement loan programs consider the average monthly deposits over a specified period, allowing borrowers to qualify for larger loan amounts based on their income streams. Not all mortgage lenders offer bank statement loans, limiting borrowers’ choices and potentially leading to less competitive loan terms.
Pros and Cons of Bank Statement Mortgages

How much Loan Amount can one get with Bank Statement Mortgage?

The exact loan amount will depend on the lender and your eligibility. If you meet all the abovementioned requirements, like a high credit score, a larger down payment, etc., the lender might sanction a suitable loan amount.

But to get an estimate of the loan amount you can secure, use our free Bank Statement Loan Calculator. It is a tool that gives you an idea of the loan amount you can expect based on some inputs from you. Enter your monthly income, debts, and expenses, down payment amount, and other details to get the results.

Current Mortgage Rates In Texas

Disclaimer: The mortgage rates provided here are for informational purposes only and do not indicate actual rates offered by lenders. The lending institution determines the bank statement mortgage rate that a borrower may qualify for based on various factors, including the individual’s credit score, down payment amount, financial history, and other relevant criteria.

Please note that bank statement mortgage rates tend to be higher than conventional loan rates. Potential borrowers must consult with lenders directly to obtain personalized and accurate information regarding their mortgage options.

Current Mortgage Rates In Texas: 2023
Current Mortgage Rates In Texas | Source:
  • As of July 22, 2023, Texas’s average 30-year fixed mortgage rate has slightly risen by one basis point, reaching 6.57%, compared to the previous rate of 6.56%.
  • This puts Texas mortgage rates today five basis points higher than the national average rate, which is 6.52%.
  • However, there is some positive news for homebuyers in Texas as the current mortgage interest rate has decreased by five basis points from last week’s average of 6.62%.
  • On another note, Texas’s average 15-year fixed mortgage rate has seen a modest increase of 6 basis points, climbing from 5.84% to 5.90%.
  • At the same time, the average 5-year ARM mortgage rate has increased by eight basis points, going from 6.68% to 6.76%.

Finding The Best Bank Statement Mortgage Lender In Texas

Navigating the world of mortgage lenders can be overwhelming and time-consuming, but fear not because HomeAbroad is here to be your trusted guide throughout the process!

Why choose HomeAbroad for your mortgage needs? Here are the outstanding features that set us apart from the rest:

  1. Extensive Network: HomeAbroad has a curated network of top Bank Statement Mortgage Lenders in Texas, certified and experienced to ensure the best service.
  2. Tailored Solutions: Lenders at HomeAbroad understand your unique needs and create personalized mortgage plans that align with your goals.
  3. Flexibility: Enjoy a wide range of flexible terms that fit your budget and lifestyle without compromising service quality.
  4. Streamlined Process: Say goodbye to paperwork and waiting periods – our lenders provide an efficient application process that ensures a stress-free experience.
  5. Expert Guidance: Our experienced mortgage lenders offer constant support, advice, and answers to your questions.
  6. Transparency: HomeAbroad values honesty, ensuring no hidden fees or surprises along the way.

Find the best bank statement loan lenders.


The advent of Bank Statement Loans in Texas has provided a lifeline for those previously excluded from traditional mortgage options. With this alternative financing solution, individuals with unconventional income sources can now embark on the path to homeownership, and we hope that this article will help you every step of the way.

To navigate the process of obtaining a Bank Statement Mortgage seamlessly, aspiring homeowners can turn to HomeAbroad. With a curated network of top Bank Statement Mortgage Lenders in Texas, HomeAbroad connects you with lenders who offer tailored and flexible mortgage solutions, making the journey toward owning a home a stress-free and transparent experience.

Connect with the best bank statement loan lenders.


  1. Can I get a loan based on my bank statement?

    Yes, you can get a loan based on your bank statement through a Bank Statement Loan. This specialized type of mortgage allows individuals with unconventional income sources, such as self-employed individuals, freelancers, gig workers, and independent contractors, to use their bank statements as an alternative method for income verification.

  2. How much can I qualify for a bank statement loan?

    The amount you can qualify for on a bank statement loan depends on various factors, including the lender’s policies, your financial profile, creditworthiness, and the assessment of your average monthly income based on 12-24 months of bank statements. Generally, lenders will consider your ability to repay the loan and may require a down payment of around 10-20% of the loan amount.

  3. Can I get a mortgage loan with only bank statements in Texas?

    Yes, you can get a mortgage loan in Texas with only bank statements through a Bank Statement Mortgage. Instead of relying solely on traditional income verification methods like pay stubs and W-2s, lenders use your bank statements to assess your repayment ability and creditworthiness.

  4. What is the minimum credit score for a Bank Statement Mortgage in Texas?

    The minimum credit score required for Texas bank statement loans is 600 and above. However, remember that credit score requirements vary among lenders, and having a higher credit score can improve your chances of qualifying for more favorable terms.

  5. Which bank statement is required for a mortgage?

    For a mortgage application, lenders generally require personal bank statements for the past 12-24 months. If you’re a business owner or self-employed, you may also need to provide business bank statements to support your income verification.

  6. What is required for a bank statement loan?

    To apply for a bank statement loan, you must typically provide 12-24 months of personal or business bank statements to verify your income. Additionally, you may be asked to present P&L statements, asset documents, cash reserves, identification papers, and other materials requested by the lender.

  7. Can you get a mortgage loan with bank statements?

    Yes, you can obtain a mortgage loan using bank statements as part of the income verification process. Bank Statement Mortgages allow self-employed individuals and those with unconventional income sources to qualify for a mortgage based on their bank statement history and other supplementary documents.

  8. What do mortgage companies need bank statements for?

    Mortgage companies use bank statements to assess your creditworthiness and verify your income when processing a mortgage application. By reviewing your bank statements, they can evaluate your average monthly income, financial stability, and ability to make regular mortgage payments.

  9. Are bank statement mortgages legit?

    Yes, bank statement mortgages are legitimate and legal financing options various lenders offer. They are designed to cater to individuals with unconventional income sources and provide an alternative method for income verification, allowing more people to qualify for a mortgage.

  10. How much down payment do you need for a bank statement loan in Texas?

    For bank statement home loans, borrowers typically need to make a down payment of around 10-20% of the loan amount. The exact down payment requirement may vary based on the lender’s policies and the borrower’s financial profile.

  11. How does Texas Bank Statement Loan work?

    Bank Statement Mortgage Texas evaluates eligibility via bank statements, credit history, DTI ratio, and cash reserves. Extra documents might be required due to the absence of conventional income verification. After approval, terms, interest rates, down payment, and repayment structure are discussed. Once finalized, approved funds are disbursed, enabling homeownership for those without traditional paperwork.

  12. Are bank statement loans available for self-employed borrowers in Texas?

    Yes, bank statement loans are available for self-employed borrowers in Texas. These loans are designed to consider the income of self-employed individuals based on their bank statements rather than traditional income documentation like tax returns.

  13. How many months of bank statements are required for a bank statement loan application in Texas?

    Most lenders typically require 12 to 24 months of personal and/or business bank statements to evaluate your income stability and cash flow for a bank statement loan in Texas.

  14. What are the typical interest rates for bank statement loans in Texas?

    Interest rates for bank statement loans can be higher than traditional mortgage loans due to the flexibility they offer to self-employed borrowers. Rates may vary based on the lender, market conditions, and the borrower’s financial profile.

Amresh Singh, CEO - HomeAbroad
About the author:

Amresh Singh is the founder & CEO of HomeAbroad and has an extensive 12+ years of experience in the financial services and mortgage industry – building business development and product strategy and leading customer strategy
in the financial services industry domain.

Prior to co-founding HomeAbroad, Amresh has worked for one of
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