ServicesBank Statement Loans
Bank Statement Loans in Georgetown, TX
If you run your own business, your tax returns may show far less income than you really earn after write-offs. A bank statement loan looks at your actual deposits instead. We explain how it works, what it costs and whether it fits.
A home loan that fits how self-employed people actually earn
The typical home loan sizes up your income from what your tax returns report. For people on a salary, that's fine. For business owners, freelancers and contractors, legitimate deductions can pull that reported number so low that a lender says you don't earn enough, while your bank balance tells a very different story.
With a bank statement loan, your income comes from a year or two of statements instead. You can use personal or business accounts. We add up the deposits that count, take out an expense factor when it's a business account, and average what's left into a monthly figure. That figure is what the approval is based on, in place of your returns.
There is a cost to this flexibility, and we'll be upfront about it. Rates usually run higher, and the down payment usually needs to be larger than on a conventional loan. If your returns would already get you approved for Conventional Loans or FHA Loans, we'll say so, since that route may cost you less.
What we handle on a bank statement loan
Income review from your statements
We go through your statements month by month and separate true business income from transfers between your own accounts, loan proceeds and other deposits that do not count. You see the figure we land on and how we got there.
Choosing 12 or 24 months
A 12-month window can help if business has grown recently. A 24-month window can smooth out a slow season. We run both when it makes sense and show you which one supports the stronger approval.
Personal versus business accounts
Personal statements are often counted at full value, while business statements usually have an expense factor applied. We explain which route fits how you pay yourself.
Large deposit explanations
An unusual deposit will draw questions from underwriting. We flag them early and help you write a short, clear explanation so they do not stall your file near closing.
Pre-approval for your offer
Once your income is documented, we can issue a pre-approval so sellers and agents take your offer seriously.
When a bank statement loan makes sense
A lender said no, but your income is steady
Your returns got you turned down, even though money comes into the business month after month. Closing that gap is the reason this loan exists.
You claim a lot of deductions
Write-offs for vehicles, equipment and a home office save you money at tax time. The catch is that a standard home loan only sees what's left after them.
Your pay comes on 1099s or straight from clients
Consultants, freelancers, real estate agents and gig workers rarely have neat pay stubs. Their deposits usually show their earnings more clearly.
You've worked for yourself about two years
Most programs look for around two years in the same field. If you're newer, we'll talk honestly about what's available.
You've built up savings
A solid down payment plus some money left over after closing makes approval easier and can help your rate.
What working with us looks like
- 1
Getting to know your business
We start with a call, a video chat or a visit to our office. You tell us how your business runs, how money comes in and what you hope to buy. It's also a good time to ask for pre-qualification or a rate quote.
- 2
Collecting statements and basics
You'll get a clear list of the accounts and months we need, along with ID and something showing how long you've been self-employed. We'll show you a secure way to send everything over.
- 3
Your income figure and your options
We work out your qualifying income, compare it with the price range you're considering, and put rate, down payment and monthly payment next to each other. Take your time deciding.
- 4
From underwriting to the closing table
While underwriting reviews your file, we keep you posted and answer deposit questions fast. We also stay in touch with the title company so closing day goes as planned.
What moves your rate and closing costs
We won't guess at a rate before we know your situation. We can explain the parts that push it up or down, so the quote you get by phone makes sense when you hear it. Every fee shows up in writing on your loan estimate.
- How much you put down
- A bigger down payment means the lender has less at stake. That often earns a lower rate and opens up more program choices.
- Your credit score
- Your score shapes both whether you qualify and the rate you're offered. If a small fix could lift it, we'll point that out before you apply.
- Savings left after closing
- Lenders want to see a few months of payments still sitting in your accounts once the deal closes. A deeper cushion can make your file stronger.
- What you're buying and how you'll live in it
- A place you'll live in full time tends to get better pricing than a vacation property or a rental. Condos and two-to-four unit buildings can bring extra requirements of their own.
- Personal or business statements
- When business statements carry a larger expense factor, your income figure comes out lower. That can change how much you're able to borrow.
Common questions from self-employed borrowers
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Will I have to hand over my tax returns?
Usually not for income. In most programs, your statements take the place of returns when we figure out what you earn. Underwriting will still want proof that your company exists and is operating, such as a letter from your CPA, its registration with the state or a current license for the work you do.
How do the rates compare with a conventional loan?
Expect them to run higher. The size of the gap depends on your credit, down payment and savings. We'll put the numbers beside any conventional or FHA option you qualify for, so you can compare them side by side.
Can I refinance with a bank statement loan?
Yes. Business owners use them to refinance to a better rate or to take cash out of their equity. If all you want is access to equity, a HELOC is worth weighing too.
One of my years was slow. Does that hurt me?
It can, which is why picking the right window matters. We check which 12 or 24 months give the fairest view of your earnings and help explain any dip that underwriting asks about.
Does this work for a rental or investment purchase?
Often it does, though the down payment and rate usually differ from a place you'll live in. If you're buying to fix and resell quickly, we may also walk you through Hard Money Loans or Bridge Loans.
Find out what your deposits can qualify you for
Bring a rough idea of your monthly deposits and the price range you are looking at. We will explain your options in plain terms and help you start an application when you are ready.