Bank Statement Loan Requirements for Texas Borrowers
Bank statement loan requirements can help self-employed Texas borrowers qualify using documented deposits when tax returns or pay stubs do not show their full cash flow. These loans may be an option for borrowers with non-traditional or variable income.
Most programs review 12 to 24 months of bank statements, credit history, down payment, debt-to-income ratio, and the source of deposits. Requirements vary by lender and loan program, so Josh Moody Loans can help you compare your documentation and options.
How does a bank statement loan work?
Instead of traditional income verification documents, applicants are required to submit a specified number of recent bank statements.
Lenders assess the average monthly income based on the bank statements provided.
Bank statement loan requirements
Loan approval depends on a borrower’s ability to provide the following:
- 12-24 months of bank statements
- Credit score of at least 620 (but higher will help you access better rates and terms)
- Down payment of at least 10%
- Debt-to-income (DTI) ratio established by lender
- Loan-to-value (LTV) ratio established by lender
What to prepare for a bank statement loan
Before you apply, gather your most recent personal or business bank statements, a summary of your self-employment or business income, information about your debts, and funds available for your down payment and closing costs. Your lender will confirm which documents and statement period apply to your loan program.
You may want to have these items ready:
- 12 to 24 months of bank statements, if required by your loan program
- Documentation that explains large or unusual deposits
- Current credit, debt, and property information
- Funds for your down payment, closing costs, and any required reserves
A bank statement loan is not a one-size-fits-all program. Deposit history, credit, down payment, property type, and other factors can affect eligibility and pricing. Josh Moody Loans can review your situation and explain which options may fit before you apply.
Bank statement loan FAQs
Bank statement loans are designed to be more flexible in assessing income, making them accessible for self-employed individuals or those with non-traditional income sources.
Bank statement loan interest rates generally are about 2% higher than conventional mortgage rates, depending on other qualification factors.
Adjustable-rate loans can bring down your payment.
Your lender generally will want to see 12-24 months of a borrower’s most recent bank statements to assess their income, expenses, and overall financial stability.
Getting approved for a bank statement loan may be faster than with a conventional mortgage because income verification is more streamlined.