Bank Statement Loans in Texas For Self-Employed Borrowers
Self-employed workers and business owners who use bank statements or 1099’s to document their income often find that qualifying for traditional mortgage financing can be difficult. Most mortgage lenders require traditional W2’s or tax returns to qualify people for a mortgage, but many self-employed workers W2’s don’t accurately represent their earnings.
Bank Statement loans were designed to make it easier for self-employed workers purchase a home or refinance their current home.
What is a Bank Statement Loan?
A bank statement loan is a mortgage option designed for workers with non-traditional income streams like gig workers, freelancers and contractors who may not qualify using traditional tax returns. Instead of W-2s or filed tax returns, lenders review 12–24 months of personal or business bank statements to calculate income based on deposits and expenses. This allows business bank statements to replace tax returns in the approval process.
While lenders still evaluate credit score, cash flow consistency, debt-to-income ratio, and overall financial strength, bank statement loans offer a straightforward path for self-employed borrowers to qualify. Interest rates may differ from traditional mortgage options, but this structure can make approval possible for borrowers whose income is stronger than what tax documents alone reflect.
Are You One of 12.3% of Workers in Texas Who Are Self-Employed?
In Texas, about 1.4 million workers are self-employed, from independent contractors to commission-based professionals. With booming metro areas like Dallas, Houston, Austin, and San Antonio, and a competitive housing market, many self-employed Texans face challenges showing steady income for a traditional mortgage.
That’s where bank statement loans come in. By using bank statements to evaluate deposits and business cash flow, these loans give borrowers alternative qualification options. Whether you’re running a small business, working on commission, or freelancing, bank statement loans can help you secure financing with competitive interest rates.
Loan Types
When comparing mortgage options in Texas, bank statement loans, FHA loans, and conventional loans primarily differ in how lenders verify income and assess risk. Bank statement programs allow borrowers to qualify using deposit and expense history, while the other programs rely heavily on standard income verification such as W-2s and pay stubs. Approval and interest rates may vary for each mortgage option through assessment of debt-to-income ratio, down payment, and credit score.
Bank Statement Loans
Are designed for borrowers, often self-employed, who may not qualify with traditional income documentation. In the banking sector, lenders use 12–24 months of bank statement deposits to calculate income, offering expanded documentation options when tax returns do not reflect true cash flow.
FHA Loans
Are government-backed mortgage options that offer lower down payments and more flexible credit score guidelines. They can be a strong choice for borrowers, especially first-time homebuyers, who need more accommodating qualification standards.
Conventional Loans
Follow stricter underwriting guidelines, traditional income documentation, and typically require higher credit scores. They often provide competitive interest rates, lower down payments, and flexible term options for well-qualified applicants.
Requirements for Bank Statement Loans in Texas
For Bank Statement Loans in Texas, lenders calculate income by analyzing deposits and applying an expense factor for business related expenses to determine monthly income. They then determine the debt-to-income ratio by comparing monthly obligations the calculated income, in line with our Bank Statement Loan requirements, to ensure borrowers can adequately manage repayment.
Key Features of Newfi’s Bank Statement Loan Program:
- Loan-to-Value (LTV): Up to 90% for purchases and rate & term refinances; cash-out refinances available up to 80%.
- Credit Score Requirements: Minimum scores starting at 620.
- Loan Amounts: $100,000 up to $3.5 million.
- Income Documentation Options: Qualify using 12–24 months of bank statements
- Property Types: Eligible for primary residences, second homes, and investment properties.
- Loan Terms: 15-, 30-, and 40-year fixed-rate options and 30- and 40-year interest-only terms.
Self-Employed Mortgage Rates in Texas
Newfi offers competitive mortgage rates designed to fit a wide range of borrower needs, including self-employed and non-traditional income scenarios. Because market conditions change daily, our banking rates are updated regularly to reflect the most current opportunities available.
Ssee where rates stand today or be among the first to access new pricing when it goes live. We’ll provide a personalized rate review and help you determine the best strategy based on your goals.
Other Ways You Can Qualify With a Self-Employed Income
While Bank Statement Loans are a good option for many non-traditional income earners in Texas, lenders may also evaluate self-employed income through 1099s, gross receipts, or profit and loss (P&L) statements. Below is a comparison of the different documentation options available in Texas and how each method can help borrowers qualify.
| Bank Statements | 1099 | CPA P&L | CPA Gross Receipts | |
|---|---|---|---|---|
| Documentation | 12 or 24 Months Personal or Business Bank Statements | 1 or 2 Years of 1099 Income | Last 12 Months CPA P&L + 2 Months Bank Statements | CPA Letter Verifying Most Recent Tax Return + 2-6 Months Business Bank Statements |
| Max LTV (Purchases) | 90% | 90% | 80% | 80% |
| Max DTI | 50% | 50% | 50% | 50% |
| Minimum Credit Score | 620 | 620 | 620 | 620 |
| Expense Factor | Fixed 50% or other options | Standard 10% | No Expense Factor Required | Fixed 50% or other options |
| Self-Employed Work History Required | 2 Years (1 year + on case-by-case basis) | 2 Years (1 year + on case-by-case basis) | 2 Years (1 year + on case-by-case basis) | 2 Years (1 year + on case-by-case basis) |
| Min. Percentage of Business Owned | 20% for Personal 25% for Business | No ownership required | 50% | 50% |
How to Get a Mortgage When You're Self-Employed in Texas
Getting a mortgage as an independent professional in Texas can be tricky because traditional lenders like banks, credit unions, and some large national mortgage companies rely heavily on traditional documentation.
Working with a Non-QM lender gives entrepreneurs, 1099 earners, and small business owners a better chance to qualify. These lenders understand the nuances of self-employment income and provide mortgage solutions tailored to your business and lifestyle, helping you secure a home without unnecessary hoops.
Why Choose a Bank Statement Mortgage Loan
Independent professionals often benefit from bank statement loans because traditional mortgage guidelines may not reflect true income. By calculating average monthly deposits and applying an expense factor, lenders can determine qualifying income on true earnings and deposits.
As a Non-QM lender, Newfi offers this structure to help borrowers in Texas show stronger income, especially when revenue is steady or increasing. In some cases, income sources can also be “stacked”, helping borrowers qualify on multiple types of income. This type of financing offers a practical way to qualify for a mortgage based on actual cash flow.
You May Already Qualify
Bank statement loans are designed for self-employed borrowers who don’t fit traditional guidelines. Let’s see where you stand.
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Top Texas Cities for Self-Employed Borrowers
Major Texas metros continue attracting entrepreneurs and independent professionals, driving strong housing demand across the state’s largest cities.
Houston
- Houston’s growing energy and healthcare sectors continue to drive population growth and housing demand, with many business owners considering bank statement loans in popular hubs such as The Woodlands, Sugar Land and the Energy Corridor.
Dallas
- Dallas continues to see a rising number of startups, corporate relocations, expanding tech and finance sectors, and a growing number of entrepreneurs. Many of these independent professionals are exploring options like a self-employed loan, purchasing rapidly in Uptown, Plano and Frisco.
Austin
- Austin’s housing demand remains one of the fastest-growing economies as tech companies, startups, and creative businesses continue to expand across downtown, bringing population growth and increasing competition for homes.
San Antonio
- San Antonio’s housing market grows in the expansion of healthcare, cybersecurity, and tourism, supporting a steady demand for homes, new residences, and new businesses.
Looking For A Bank Statement Loan in Texas?
Structure your bank statement loan today.
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Why Choose Newfi Lending for Your Texas Bank Statement Loan?
- Competitive Rates
- Streamlined Approval Process
- Experienced Loan Advisor Support
Our team of dedicated Senior Loan Advisors is here to help non-traditional income earners navigate the bank statement mortgage process with confidence. Instead of relying on traditional tax returns, we review your bank statements to better understand your true cash flow and income.
Whether you’re a business owner, freelancer, or 1099 earner looking to purchase or refinance, we’ll help you find a mortgage solution designed for your financial situation. If you’d like to learn more about our Bank Statement Loan requirements or receive a personalized rate quote, our Loan Advisors are here to guide you every step of the way. Contact us today to get started.
Frequently Asked Questions
How long do I have to be self-employed in Texas to use my income?
Most lenders require two years of self-employment to verify consistent income. In some cases, borrowers with one year of self-employment may qualify if they have a strong professional background or additional income sources.
Do I need tax returns in Texas?
Not always. Many bank statement loan programs allow borrowers to qualify using 12–24 months of bank statements instead of traditional tax returns.
I live in Texas and my spouse or co-borrower is not self-employed. Can I use their income to help qualify?
Yes. Borrowers can often combine self-employment income with a spouse or co-borrower’s W-2 income to strengthen mortgage qualification.
Can I be a first time homebuyer?
Yes. First-time buyers can qualify for bank statement mortgages or other loan programs like FHA, depending on eligibility and loan guidelines.
Are self-employed mortgage loans more complicated?
Not necessarily. The process is similar to traditional loans, but lenders review bank statements or alternative income documentation instead of tax returns.
How long does it take to close?
Most bank statement mortgages close within 30–45 days, depending on documentation and underwriting.
How do I apply?
Call (888) 316-3934 or fill out the form on this page to connect with a Newfi Senior Loan Advisor and review your options.
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© Copyright 2016-2026 Nexera Holding LLC dba Newfi Lending | All Rights Reserved | NMLS ID 1231327 | This website is not approved for use in the state of New York. For qualified borrowers. The information provided is for general informational purposes only and does not constitute legal or tax advice. You should not act upon any information provided without seeking professional legal counsel tailored to your specific situation. We recommend consulting with a qualified attorney or tax professional for advice on any particular legal or tax matter.
