ServicesBank Statement Loans
Bank Statement Loans in Dripping Springs
Self-employed borrowers often earn more than their tax returns suggest. A bank statement loan qualifies you on 12 or 24 months of deposits instead. We read your statements carefully, explain each number in plain terms and help you settle on a home loan that stays comfortable for years.
A home loan for income that doesn't fit a W-2
Self-employed borrowers often write off a lot of legitimate expenses. That keeps the tax bill down, but it also shrinks the income a conventional underwriter will count. A bank statement loan looks at what actually lands in your accounts. We total your eligible deposits, apply an expense factor to business accounts and arrive at a qualifying income that reflects how your business really runs.
This is a non-qualified mortgage, so the rules differ from Conventional Loans and FHA Loans. Rates usually run higher and the down payment is usually larger. In exchange, you can buy or refinance without reworking your tax strategy. With 11 years in the mortgage industry, we have seen where these files move smoothly and where they stall, and we plan for both.
We also think past closing. A payment you can comfortably keep up matters more than the largest number you can qualify for, and we watch for the point when refinancing into a conventional loan might make sense once your returns catch up.
What we handle on a bank statement loan
- Statement review before underwriting
- We go through each month of deposits with you and flag transfers between accounts, refunds and one-time items, which underwriters typically exclude. Catching them early keeps your qualifying income from shrinking late in the process.
- Personal or business account strategy
- Some borrowers qualify better on personal statements, others on business statements. Where both apply, we run the numbers each way and show you the difference.
- Expense factor and CPA letter guidance
- Underwriting trims business deposits by a standard expense percentage before treating what remains as income. If your actual costs run below that percentage, a letter from your CPA or tax preparer may help, and we explain what it needs to say.
- Rate quotes at different down payments
- We lay out rate quotes at more than one down payment level so you can weigh cash at closing against the monthly cost.
- Purchase and refinance
- Bank statement loans can be used to buy a primary residence and, depending on the program, a second home or investment property. They also work for a rate-and-term or cash-out refinance on a property you already own.
- One loan officer, start to finish
- We have been NMLS licensed for 10 years, and the same loan officer stays with your file from pre-qualification to the closing table.
Signs a bank statement loan may fit you
Strong income, declined anyway
A lender said your tax returns didn't support the payment, yet your accounts tell a different story. This program was built for that gap.
You own the business
Sole proprietors, LLC owners, contractors, consultants and real estate agents are common bank statement borrowers.
Your income moves with the seasons
A 24-month statement period smooths out busy and slow stretches instead of judging you on a single lean quarter.
Recent growth isn't on paper yet
If this year's deposits are well ahead of last year's return, a 12-month review may capture that growth sooner.
You'd rather not amend returns
Changing your filings just to qualify can cost you at tax time. Qualifying on deposits leaves your tax planning alone.
From first conversation to closing
- 1
Pre-qualification by phone
We talk through your business, your accounts, your credit and what you want to buy or refinance. You'll know which statement period and account type to use before you gather anything.
- 2
Gathering statements and documents
You collect 12 or 24 months of complete statements, every page, plus ID and proof of your business, such as a business license or CPA letter. We can go over them together in our office or on a phone or video call, depending on what fits your week.
- 3
Income calculation and rate quotes
We calculate qualifying income the way underwriting will, then show rate quotes and payment options at the down payment you're comfortable with.
- 4
Application and underwriting
Once you choose a path, we take your loan application over the phone, order the appraisal and answer underwriter questions as they come up, so nothing sits waiting on you.
- 5
Closing and the years after
We review the closing disclosure with you line by line before you sign. Afterward, we're glad to revisit the loan if rates drop or your tax returns start to tell the full story.
What moves the rate on a bank statement loan
Lenders price these loans by how much risk they see in each file, which is why two self-employed borrowers can get different rates on the same morning. We walk through every factor in plain terms and give you rate quotes you can set side by side. Nothing is settled until underwriting has reviewed your file.
- Credit score
- A higher score generally earns better pricing. If a small change could move you into a stronger tier, we'll tell you before you apply.
- Down payment or equity
- More money down, or more equity on a refinance, usually lowers the rate and can open up more program options.
- Deposit pattern
- Steady, consistent deposits read as lower risk than large irregular swings. A 24-month period sometimes prices better than 12 for that reason.
- Property type and use
- A primary residence typically prices better than an investment property. Acreage and rural properties around Dripping Springs can call for a more detailed appraisal.
- Reserves after closing
- Programs often ask for several months of payments left in savings. Stronger reserves can help both approval and pricing.
Bank statement loan questions
Something not covered here? (512) 518-4926
Do I need to provide tax returns at all?
For qualifying income, usually not. The statements do that work. You will still sign standard disclosure forms, and you'll need to show the business exists, often with a license, CPA letter or similar record.
How long do I need to be self-employed?
Most programs look for about two years of self-employment. Some allow less if you worked in the same field before going out on your own. We'll check which programs fit your history during pre-qualification.
Can I use both personal and business statements?
Usually you qualify on one type of account. If your business deposits run through a personal account, personal statements may work well. We look at how your money actually moves and pick the option that counts the most income honestly.
Are rates higher than on a conventional loan?
Typically, yes, because the program carries more risk for the investor. Many borrowers treat it as a starting point and refinance into a conventional loan later once their returns support it. We'll talk through that plan with you up front.
Is there a penalty for refinancing later?
Some bank statement loans carry a prepayment penalty, especially on investment properties, and some don't. We point out any penalty clearly in your rate quotes so it never surprises you down the road.
Do you work with borrowers outside Dripping Springs?
Yes. We help self-employed borrowers in Wimberley, Buda, Belterra, Bee Cave and the surrounding area. Meetings can happen at our office or by phone and video.
Find out what your deposits can qualify for
Bring a rough idea of your monthly deposits and your credit, and we'll walk through pre-qualification together on the phone. You'll leave the conversation knowing which statements to gather and what to expect next.