ServicesBank Statement Loans
Bank Statement Loans in Pflugerville
Your tax returns show what's left once the write-offs come out. Your bank statements show what you actually bring in. We use 12 or 24 months of deposits to qualify self-employed borrowers for a home loan. Once you close, we keep checking in so you know how to keep the loan working for you.
A home loan for people who sign their own paychecks
A bank statement loan is a mortgage for business owners, freelancers, contractors and gig workers. The lender doesn't read your income off a W-2 or a tax return. It adds up the deposits on your personal or business bank statements, takes off an expense factor, and uses that number to qualify you.
It's the right call when your write-offs make your income look smaller than it is. It's not always the cheapest choice. If your returns already show enough income, a conventional loan or an FHA loan will usually carry a better rate, and we'll say so. We've spent 11 years in the mortgage industry, and sometimes the honest answer is a different loan.
Our work doesn't stop at closing. We call you once the loan funds to go over your first payment and your escrow, and to talk about when a refinance might make sense as your tax returns catch up.
What we handle on a bank statement loan
- Deposit review, month by month
- We go through every statement and pull out transfers between your own accounts, refunds and other money that isn't income. What's left is what the lender counts. You see the math before the file goes to underwriting.
- Getting the expense factor right
- Lenders cut your deposits by an expense ratio to cover business costs. If your real costs run lower, a CPA letter or a profit and loss statement can sometimes support a smaller cut. We'll tell you if it's worth the trouble of getting one.
- Personal or business statements
- Some borrowers qualify better on business deposits, others on personal. If you have both, we run it both ways and go with the one that holds up.
- Rate quotes you can compare
- We lay out the rate, points and closing costs line by line. You can weigh a 12-month and a 24-month option side by side.
- Follow-up after closing
- Once you close, we check in. We cover how your payment and escrow work, what to look for on your yearly escrow statement, and what it would take to move into a conventional refinance down the road.
Signs a bank statement loan fits you
Your tax returns got you turned down
Your business makes money, but after deductions the bottom line on your Schedule C is too thin to qualify. That's the most common reason people call us about this loan.
Your income swings month to month
Seasonal work, big project payouts, slow stretches. Averaging 12 or 24 months of deposits evens that out.
You're newer to working for yourself
Many loans want two full years of returns. Some bank statement programs accept a shorter history if you did the same kind of work before going out on your own. It depends on the program, so ask us.
You get 1099s, not W-2s
Real estate agents, contractors, rideshare drivers and consultants often fit here.
Your business money runs through one account
Clean deposits that don't mix with a lot of personal transfers make the review faster and the income easier to prove.
What moves your rate and costs
Bank statement loans usually price a little higher than conventional loans, because the lender is leaning on deposits instead of tax returns. How much higher comes down to your file. We give rate quotes by phone once we know the details, not before.
Credit score
A stronger score gets you better pricing. It can also lower the amount of cash a program expects you to bring to closing.
Down payment
The more of your own money goes into the purchase, the less risk the lender carries, and your rate usually reflects that. Expect this loan to ask for a bigger share up front than most standard mortgages.
12 months or 24 months
Twenty-four months can show steadier income. Twelve months can help if your business grew recently. Which one you pick can change your rate.
Reserves
Lenders want to see several months of payments left in the bank after closing. A deeper cushion can help your pricing.
How you'll use the property
Living in it yourself usually gets the best pricing. A vacation place or a rental carries more risk in the lender's eyes, so the rate and down payment tend to run higher.
How it goes, start to finish
- 1
A phone call to pre-qualify
We talk about your work, your credit, your down payment and the price range you have in mind. You'll know where you stand before you dig up a single statement.
- 2
Statements and a deposit count
You bring us 12 or 24 months of statements. We total the qualifying deposits, apply the expense factor and show you the income figure. We meet at our office, or by phone and video.
- 3
Application, appraisal and underwriting
Once you have a contract, we put together the full application and hand it to underwriting. They may ask about a large deposit or a gap in the statements. We call you, tell you what they want and why, so you're never guessing.
- 4
Closing
Before you sign, we walk through the closing disclosure with you. The numbers should match what you were told, and we check that they do.
- 5
The check-in after
A few weeks into the loan, we call again. We confirm your first payment went through, answer escrow questions and set a reminder to look at a refinance when your returns or rates make it worth a look.
Bank statement loan questions
Do I need to show tax returns at all?
Usually not for income. The bank statements take their place. You may still need to show the business is real, with something like a business license, a CPA letter or a history in the same line of work. We'll tell you exactly what your program asks for.
Can I refinance into a conventional loan later?
Yes, and plenty of borrowers do. Once your tax returns show enough income, a conventional refinance can bring a lower rate. We keep track and check in, so that window doesn't slip past you.
Will one big deposit cause a problem?
It can raise a question. Underwriting will want to know where a large or unusual deposit came from. If it's business income, an invoice usually settles it. If it's a transfer or a gift, it may be left out of the count.
How long have you been doing this?
We've held our NMLS license for 10 years. Self-employed files take more legwork than a W-2 file, and we've learned where they tend to get stuck. We'd rather flag a problem on the first call than at underwriting.
Do you work with borrowers outside Pflugerville?
Yes. Most of this work happens by phone and video, so self-employed borrowers in Round Rock, Hutto and the rest of the area work with us the same way. You can also meet us at our office.
Find out what your deposits qualify for
Tell us about your business and how you get paid. We'll run a pre-qualification by phone and tell you plainly whether this loan or another one fits better.