Bank Statement Loans in Texas

What Is a Bank Statement Loan?

A bank statement loan is a type of Texas home loan that allows borrowers to qualify for a mortgage based on a series of bank statements rather than traditional income documentation such as tax returns or W-2s.

Bank statement loans in Texas are ideal for self-employed individuals, business owners, freelancers, and retirees, who tend to have fluctuating income or benefit from write-offs that reduce the amount of income represented on their tax returns.

While conventional loans have strict income documentation requirements, bank statement loans in Texas offer more flexibility by evaluating deposits over a 12-24 month period to determine income. This provides a path to homeownership for those who can’t provide tax returns as proof of income, while still allowing lenders to evaluate the borrower’s financial profile.

Try out our bank statement loan calculator to see what this type of financing may look like in your case.

Who Are Bank Statement Loans for?

Bank statement loans in Texas are ideal for individuals who can’t provide a W-2 or pay stubs but have the income necessary to get a mortgage. Some individuals who might use bank statement loans include:

• Business owners
• Freelancers
• Consultants
• Contract workers
• Independent workers
• Sole proprietors
• Gig economy workers
• Realtors
• Entrepreneurs

What Types of Bank Statement Loans Are Available in Texas?

There are several types of bank statement home loans in Texas, including:

• Bank statement purchase loan: Get the capital you need to purchase investment property with a bank statement mortgage loan in Texas.
• Bank statement refinance loan: Refinance your existing loan to get a better interest rate, lower monthly payments, or convert your equity to cash.
• Bank statement home equity loan: Tap into the equity in your Texas home and turn it into cash you can use for anything you’d like.

Self-employed borrowers in Texas can qualify for a bank statement loan using either personal or business bank statements:

• Personal Bank Statements: Qualify on 12 or 24 months’ worth of bank statements. We count 100 percent of deposits as income.
• Business Bank Statements: Qualify on 12 or 24 months’ worth of bank statements. We count 50 percent of the deposits as income.

Pros and Cons of Texas Bank Statement Loans

While bank statement loans are designed to help those who may not qualify for a conventional loan achieve their dreams of homeownership, there are a few pros and cons to keep in mind. 

Pros

The benefits of these loans include:

• Flexibility in income documentation
• Individuals with fluctuating income, such as freelancers or business owners, may find it easier to qualify compared to traditional mortgages
• Loan amounts of up to $20 million
• Down payments as low as 10%
• Quick approval process

Cons

Potential cons of Texas bank statement home loans include the following:

• Higher interest rates that reflect the increased risk associated with non-traditional income documentation
• Must be self-employed for at least two years to qualify
• Not offered by all lenders

If you’re unsure whether a bank statement loan in Texas is right for you, feel free to reach out to Griffin Funding to further discuss how bank statement loans work and potential alternatives to this type of financing. 

Texas Bank Statement Loan Requirements 

Those interested in getting a bank statement mortgage loan in Texas should familiarize themselves with this program’s basic requirements:

• Self-employed: Borrowers must be self-employed for at least two years in order to qualify. An exception may be made if you’ve been in the same industry for multiple years and recently started a business in the same industry.
• Bank statements: Borrowers must provide 12-24 months of bank statements
• Credit score: Minimum credit score of 620 for qualified borrowers.
• Down payment: 10% minimum down payment, although the down payment requirement may be higher depending on your financial profile and loan amount.
• Cash reserves: 3-6 months of PITI reserves required for loan amounts under $1.5 million. 12 months of PITI reserves required for loan amounts over $3 million.
• Loan amount: The minimum loan amount is $100,000 and the maximum loan amount is $20 million.

Download the Griffin Gold app today to see if you qualify for a bank statement loan in Texas. 

Griffin Funding is proud to serve cities across the state of Texas. If you’re interested in securing a bank statement loan anywhere in Texas, reach out to us to get started.

Why Choose Griffin Funding?

Griffin Funding partners with more than 40 different banks, lenders, private equity funds, and investors nationwide, allowing us to provide a wide range of products. We work directly with our clients to find innovative loan solutions for investors that align with their goals.

When it’s difficult to find financial institutions that can provide unique solutions tailored to your situation, our team is here to help. We specialize in alternative mortgage products and deliver personalized lending solutions at affordable rates.

Here’s why so many investors choose Griffin Funding:

• Competitive interest rates
• Excellent customer service
• Loan options that are tailored to your needs

If you have questions about bank statement loans, DSCR loans, non-QM loans, or other mortgage options, reach out to the team at Griffin Funding.

Texas Bank Statement Loan Example

Now that we have explained what bank statement mortgage loans in Texas are and why they can be a good option for those seeking alternative forms of financing, let’s look at a quick example that illustrates how bank statement home loans in Texas can be helpful.

For more than 20 years, Scott has owned a fix and flip company in Dallas, Texas. After years of buying, fixing up, and selling properties for others to enjoy, he was ready to fix up his own home. Scott needed cash-out for his property but continued to be turned down because he had a lot of tax write-offs and had trouble showing his real income.

Texas is a great state, but it can be tricky getting a cash-out loan here because only qualified lenders can do a cash-out loan and not all lenders are approved to use business bank statements for a loan. Luckily, Scott found Griffin Funding. We went through all of his bank statements and qualified him for a loan within three weeks. He was able to make his home of 16 years into the dream home he always wanted.

Apply for a Bank Statement Loan in Texas Today

Bank statement mortgage loans in Texas continue to rise in demand among those who do not meet the traditional requirements of a conventional mortgage program. 

If you are looking for help with mortgage funding for your property purchase, contact our Griffin Funding team today. We are pleased to provide you with the right support and suggest a loan to help you meet your objectives.

Call our team at (855) 394-8288 or get started online to start the process of obtaining a bank statement mortgage loan in Texas today.