Should I use personal or business bank statements?

It depends on how your money moves. If you pay yourself regularly into a personal account, personal statements may be cleaner. If most income stays in the business account, business statements work, with an expense factor applied. We look at both and tell you which gives the stronger file.

How long do I need to be self-employed?

Most programs look for about two years of self-employment. Some will consider a shorter history if you stayed in the same line of work before going out on your own. We can tell you on the first call where you stand.

Do I need to provide tax returns at all?

Usually not for income purposes, which is the point of this loan. You will still need ID, asset statements and proof the business is active, and some lenders ask you to sign a form allowing a tax transcript request.

Are the rates higher than a conventional loan?

Typically yes, because the income documentation is alternative. Many borrowers use a bank statement loan to buy now and look at a conventional refinance later once their tax returns support it. We will show you that comparison in your quote.

How long does closing take?

It depends on how quickly statements come in and how many deposits need sourcing. We set dated milestones at the start and update you whenever one moves, so you can plan your move, your lease and your business around a real schedule.

ServicesBank Statement Loans

Bank Statement Loans in Cedar Park

If you run your own business, your tax return may understate what you actually earn. A bank statement loan qualifies you on real deposits. We give you a rate quote, explain how your income will be calculated, and set a closing schedule you can plan around.

Get a rate quote at (512) 287-8237

Woman in a cream sweater and man in a navy shirt review a row of bank statements on an office desk with a calculator and yellow notepad

A home loan built on deposits, not deductions

Self-employed borrowers often write off vehicles, equipment, a home office and depreciation. Those deductions lower taxable income, and that is also the figure a conventional underwriter uses to qualify you. A bank statement loan is a non-QM mortgage that looks at 12 or 24 months of deposits instead, then applies an expense factor to estimate what the business really pays you.

It fits contractors, consultants, realtors, owners of small shops and 1099 earners whose income is solid but hard to show on paper. The trade-off is plain: rates usually run higher than conventional, and down payment requirements are usually larger. We walk through that before you commit.

These files have more moving parts than a W-2 loan, and that is where schedules slip. So we map out each checkpoint, from statement review to appraisal to closing, and tell you the day plans change rather than after.

What we handle on a bank statement loan

Deposit analysis

We go through every month of statements line by line. Transfers between your own accounts, refunds and loan proceeds are pulled out, because underwriting will not count them as income.

Expense factor or P&L

Business statements are reduced by an expense factor to estimate net income. If your real expenses are lower, a letter from your CPA or tax preparer, or a profit and loss statement, can support a smaller deduction and a higher qualifying income.

Large deposit sourcing

Deposits that are unusually large compared with your normal flow need a paper trail, such as an invoice or contract. We flag these early so they do not surface as a condition the week before closing.

Reserves and down payment planning

Lenders typically want several months of payments in reserve on top of the down payment. We show you how much needs to be seasoned in the account and by when.

A dated closing calendar

You get target dates for underwriting, appraisal, rate lock expiration and closing. When a date moves, we call you with the reason and the new date.

Loan officer in a blue shirt reviews a printed payment worksheet with a borrower at a wood conference table with a calculator, folders and keys, frosted glass behind

Signs a bank statement loan may be the right call

Your write-offs sink your qualifying income: Your business brings in steady revenue, but the bottom line on your Schedule C or business return is too low to qualify for the payment you can actually afford.
You were turned down on a conventional loan: A denial based on tax return income does not mean you cannot buy. It often means the documentation method was the wrong fit.
Your income swings by season: Builders, landscapers and seasonal businesses often have uneven months. A 12 or 24 month average smooths out the slow stretches.
You are paid on 1099s or commission: Independent contractors and commission earners without a W-2 can often document income more accurately through deposits.
Your business grew fast: If this year is much stronger than two years ago, a 12 month statement program may reflect your income better than averaging older tax returns.

How the loan moves from first call to closing

1
Rate quote and fit check
On the first call a loan officer asks about your business, how long you have been self-employed, your credit and the property. You get a rate quote and a straight answer on whether this program or a conventional loan fits better.
2
Gather statements
We go over by phone exactly which 12 or 24 consecutive months of personal or business statements we need, every page included. We also ask for proof the business exists, such as a license or a CPA letter.
3
Income calculation and pre-approval
We calculate qualifying income the way underwriting will, walk you through the math, and issue a pre-approval you can make offers with.
4
Underwriting and appraisal
Once you are under contract we order the appraisal, lock your rate and move the file into underwriting. We call you with the conditions to expect and the date each one is due.
5
Closing
You review the closing disclosure ahead of the closing date, then sign at the title company. If anything shifts the schedule along the way, you hear it from us first.

What moves your rate and costs

Bank statement loans are priced on risk, so several parts of your file shape the rate and fees. We list each one in writing so you can weigh it against other options, including a conventional loan.

Credit score: Stronger scores generally earn better pricing and can open the door to a smaller down payment.
How much you put down: The more cash you bring, the smaller the share of the price the lender finances. On non-QM loans that ratio carries a lot of weight in the rate you are offered.
12 versus 24 months: Some programs price a 24 month statement history a little better, since it shows a longer record of steady deposits.
Property type and occupancy: A primary residence generally prices better than a second home or an investment property, and condos can carry their own requirements.
Rate lock length: A longer lock protects you through a slow closing but can cost more. We match the lock to a realistic closing date.

Bank statement loan questions

Should I use personal or business bank statements?: It depends on how your money moves. If you pay yourself regularly into a personal account, personal statements may be cleaner. If most income stays in the business account, business statements work, with an expense factor applied. We look at both and tell you which gives the stronger file.
How long do I need to be self-employed?: Most programs look for about two years of self-employment. Some will consider a shorter history if you stayed in the same line of work before going out on your own. We can tell you on the first call where you stand.
Do I need to provide tax returns at all?: Usually not for income purposes, which is the point of this loan. You will still need ID, asset statements and proof the business is active, and some lenders ask you to sign a form allowing a tax transcript request.
Are the rates higher than a conventional loan?: Typically yes, because the income documentation is alternative. Many borrowers use a bank statement loan to buy now and look at a conventional refinance later once their tax returns support it. We will show you that comparison in your quote.
How long does closing take?: It depends on how quickly statements come in and how many deposits need sourcing. We set dated milestones at the start and update you whenever one moves, so you can plan your move, your lease and your business around a real schedule.

See what your deposits qualify you for

Have a few recent statements handy and we can talk through your income, your rate and a realistic timeline. If a different loan fits better, we will tell you that too.

Start pre-qualification at (512) 287-8237