Bank Statement Loans in Manor

A home loan built around how you get paid

A bank statement loan is a mortgage for self-employed borrowers. Instead of W-2s and tax returns, the lender reviews 12 or 24 months of personal or business bank statements to figure your income. Contractors, realtors, truck owner-operators, shop owners and freelancers use it most.

It is not the cheapest loan out there. Rates usually run higher than a conventional loan, and the down payment is often larger. We tell you that up front. For a lot of borrowers it still makes sense, because buying now and refinancing later can cost less over the years than waiting two more tax seasons to qualify the standard way.

We have spent 11 years in the mortgage industry, and we lay out both paths side by side: what this loan costs you at closing and each month, and what a conventional loan might cost if your returns can support it.

What we handle on a bank statement loan

Income math from your deposits

We add up your eligible deposits and apply the expense factor the loan program uses for business accounts. You see the number we get and how we got it.

Personal or business statements

Some borrowers qualify better on personal accounts, others on business accounts. We run it both ways when we can and use the one that works.

A straight comparison with other loans

If a conventional or FHA loan could work for you, we say so. We compare total cost over the time you expect to keep the loan, not just the rate.

Pre-approval you can shop with

Once your statements check out, we issue a pre-approval letter so sellers in Manor, Pflugerville or Hutto take your offer seriously.

A refinance plan for later

If your rate is higher today, we talk about when a refinance into a standard loan could make sense once your returns catch up.

Signs a bank statement loan fits you

• Your write-offs hurt your approval

  Your business is healthy, but after deductions your taxable income looks thin. A lender reading only your returns sees far less than you earn.

• You got turned down elsewhere

  A bank or big lender said your income does not qualify. That often means they only looked at tax returns.

• Your income is real but uneven

  Big months and slow months average out fine over a year or two. Bank statements show that pattern clearly.

• You are newer to self-employment

  Many standard loans want two full years of returns. Some bank statement programs can work with a shorter track record if your deposits are steady.

• You have cash for a bigger down payment

  These loans usually ask for more money down and some reserves. If you have it, this door is open.

How it works, start to closing

1. 1

   A phone call about your business

   We ask how you get paid, which accounts your money lands in and what you plan to buy. This takes about as long as a cup of coffee.

2. 2

   Send your statements

   You send 12 or 24 months of bank statements, plus your business license or a letter from your CPA showing you are self-employed. We meet at our office or by phone and video, whichever suits you.

3. 3

   Income review and loan options

   We calculate qualifying income, flag any large deposits we will need to explain, and show you rate quotes with the full cost written out.

4. 4

   Underwriting and appraisal

   The file goes to underwriting and the property gets appraised. We keep you posted on any questions so nothing stalls.

5. 5

   Closing

   You sign at the title company, get your keys, and we stay available if you want to talk refinance options down the road.

What moves the cost of a bank statement loan

Bank statement loans are priced loan by loan, so we cannot quote a number until we see your file. What we can do is show you which pieces push the cost up or down and how they add up over the years you keep the loan.

Credit score

A higher score usually means a better rate. Even a small move in your score can change the monthly payment.

Down payment size

Putting more money down lowers the lender's risk and often lowers your rate. It also shrinks the loan you pay interest on for years.

12 months or 24 months of statements

Using two years of statements can sometimes get better pricing than one year. It depends on whether your income is steady or climbing.

Cash reserves

Lenders like to see a few months of payments left in the bank after closing. More reserves can help your pricing.

Property type and use

A primary residence prices differently than a second home or rental. Condos and multi-unit properties have their own rules too.