Texas Bank Statement Loans

Get a Mortgage Loan Using Only Your Bank Statement

Bank statement mortgages in Texas are an increasingly common type of mortgage lending for self-employed borrowers. They’re typically offered by credit unions, cooperative banks, and other lenders that specialize in self-employed types of loans. These loans are great for people who don’t fall into the traditional ways of documenting their income, such as with W2s and pay stubs.

What Is a Bank Statement Mortgage?

Borrowers have the option to use their bank statements as proof that they can repay the loan amount. The lender will verify the amount in your bank account and how frequently you withdraw from it. If you have enough funds in your account, you’ll be able to get approved for this type of mortgage with at least 10% down payment.

It’s ideal for people who work on commission, who run their own business or otherwise don’t collect a traditional W2 or salary.

What You Need to Know Before You Apply

As with any type of mortgage, there are some requirements to keep in mind with a bank statement mortgage, namely:

  • Must provide 12 months of consecutive bank statements from the same account
  • 20% down payment required, or 10% with mortgage insurance
  • 45% maximum debt-to-income ratio
  • $1,000,000 maximum loan amount, $200,000 minimum
  • Must escrow for taxes and insurance
  • Minimum of 2 years self-employment or 1099 contract work with exception can be made to 1 year self employed if same line of work prior.

If you’re not sure whether or not a bank statement mortgage is right for you, it’s worth consulting the experts at LBC Mortgage. We can help you determine whether or not a bank statement loan in Texas is the right type of mortgage for your specific needs.

Things to Think About When Applying for a Bank Statement Mortgage

If you’re considering applying for a bank statement mortgage, there are some things to consider. First, you’ll want to work with a Texas mortgage broker who is not only has a great deal of experience but also knows the local market as well as the demand for housing and the kinds of deals you can get. You’ll also need to decide how much money you want to borrow. Lastly, you should think about whether or not a bank statement mortgage is right for your situation.

It’s particularly beneficial if you’re self-employed and can’t go through the regular, traditional channels to get approved for a loan. So before making a final decision on what type of loan is right for you, make sure that you do your research!

Why Bank Statement Loans Might Be Right for You

Bank statement mortgages are often a great choice for buyers who fall outside the scope of a traditional mortgage.

Bank statement loans aren’t right for everyone though. The interest rates are typically higher than traditional mortgages so you might want to consider whether you can afford it–especially if you’re not sure how long it will take to save enough for a down payment or get your contract back from your lender. You should also speak to your lender about any fees that may apply.

Contact LBC Mortgage today to learn more about how bank statement mortgage can work for your unique needs as a self-employed borrower.