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What Are Bank Statement Loans?
Bank statement loans are a type of non-qualified mortgage (Non-QM) designed for self-employed borrowers or business owners who may not have traditional income documentation like W-2s or tax returns. Instead, lenders verify income based on 12-24 months of personal or business bank statements.
These loans are ideal for:
- Freelancers and gig workers
- Small business owners
- Independent contractors
Instead of strict DTI ratios or conventional underwriting, bank statement lenders focus on consistent cash flow shown in bank deposits.
Why Choose a Bank Statement Loan in Texas?
Texas has a booming population of entrepreneurs and small businesses, making it a hotspot for alternative mortgage solutions. Bank statement loans provide flexibility and accessibility where conventional loans fall short.
Key Benefits:
- No tax returns or pay stubs required
- Can use personal or business bank statements
- Loan amounts up to $5 million
- Competitive interest rates (though higher than traditional loans)
- Options for owner-occupied and investment properties
2025 Requirements for Texas Bank Statement Loans
While guidelines may vary slightly by lender, most Texas bank statement loans in 2025 include the following:
| Requirement | Detail |
| Credit Score | Minimum 620-660+ |
| Bank Statements | 12 or 24 months |
| Loan Amount | Up to $5M |
| Down Payment | Minimum 10-20% |
| DTI Ratio | Flexible; varies by lender |
| Reserves | May require 3-12 months of reserves |
Eligible Property Types:
- Single-family homes
- Condos and townhomes
- 2-4 unit properties
- Non-owner-occupied investment properties
Pro Tip:
Maximize your approval odds by working with lenders who specialize in Non-QM loans in Texas.
How to Qualify
- Gather bank statements: Ensure they clearly show consistent deposits.
- Review your credit: Check and improve your score if needed.
- Partner with a mortgage expert: Choose a lender experienced in self-employed borrower programs.
Need help finding a lender? Get matched with top bank statement lenders in Texas.
How to Use a Bank Statement Loan
Bank statement loans are commonly used for:
- Buying a primary residence
- Refinancing an existing mortgage
- Purchasing investment or vacation properties
Whether you’re eyeing a fixer-upper in Austin or a rental in Dallas, these loans open doors for borrowers with non-traditional income.
Bank Statement Loan vs Traditional Mortgage
| Feature | Bank Statement Loan | Traditional Loan |
| Income Verification | 12-24 months bank statements | W-2s, pay stubs, tax returns |
| Credit Score | 620-660+ | 620+ |
| Flexibility | High | Low |
| Rates | Slightly higher | Lower |
FAQs about Bank Statement Loans in Texas
Can I use business bank statements?
Yes. You can use business or personal bank statements. Some lenders require proof of business ownership.
Are interest rates higher?
Yes, typically 0.5% to 1% higher than conventional loans.
Can I use these for investment properties?
Absolutely. Many investors use bank statement loans to acquire rental properties in Texas.
What’s the difference between a bank statement loan and a DSCR loan?
DSCR loans use rental income to qualify; bank statement loans use your deposits. Learn more about DSCR loans in our complete guide.
Ready to Explore Your Options
Bank statement loans are a powerful tool for Texans with entrepreneurial spirit. If your income doesn’t fit into the traditional mortgage box, you’re not alone—and you’re not out of options.
Start your application now or speak with an expert to get personalized guidance.
Read Next
- Non-Warrantable Condo Loan Options and Lender Solutions
- What Is a Non-QM Loan? A Homeowner’s Guide to Alternative Mortgage Options
Get Expert Financing
- Matched with investor-friendly lenders
- Fast pre-approvals-no W2s required
- Financing options fro rentals, BRRRR, STRs
- Scale your portfolio with confidence
Our advice is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.
