Bank Statement Program for Self-Employed Buyers in Austin, TX
Your deposits tell the real story of your business. A bank statement loan lets a lender read them. Call or text (512) 593-1336.
- Deposits, not tax returns: Lenders read your bank deposits to estimate income.
- 12 or 24 months: Pick the window that fits how you earn.
- Personal or business accounts: Lenders handle each one differently.
- More than 50 wholesale lenders: We compare programs so you don’t have to.
Bank statement loan vs conventional loan
| Bank statement loan | Conventional loan | |
|---|---|---|
| Loan category | Non-QM | Qualified mortgage (agency) |
| How income is shown | 12 or 24 months of bank deposits | Tax returns, W-2s, pay stubs |
| Self-employed income used | Deposits minus an expense factor, or a CPA/tax-preparer figure | Net income after deductions, with certain add-backs |
| Loan size | Depends on lender; can be below or above the conforming limit | Up to the conforming limit ($832,750 for a one-unit home in 2026) |
| Pricing | Usually higher than conventional | Usually lower than non-QM |
| Credit, down payment, reserves | Vary by lender | Set by agency guidelines and lender |
| Who it fits | Strong deposits, but tax returns show low income after write-offs | Tax returns show enough qualifying income |
What is a bank statement loan?
A bank statement loan is a non-QM mortgage for self-employed borrowers that uses 12 or 24 months of bank deposits to estimate income instead of tax returns. CapFi Lending, an Austin mortgage broker, compares these programs across more than 50 wholesale lenders for buyers anywhere in Texas.
Many self-employed people write off real business expenses. That’s smart at tax time, but it can shrink the income a conventional lender is allowed to count. A bank statement loan looks at what actually comes into your accounts, then adjusts for business costs. Because it sits outside agency rules, it’s a non-QM loan, and pricing is usually higher than a conventional loan.
How lenders turn deposits into income
The lender adds up qualifying deposits over the statement period, removes items that aren’t income (transfers between your own accounts, loan proceeds, refunds), and averages the result by month.
Hypothetical example only (the 50% below is an illustration, not a typical expense factor): if business deposits total $240,000 over 12 months and the lender applies a 50% expense factor, qualifying income would be about $120,000 a year, or $10,000 a month. Your lender’s method and expense factor may be different.
12 months or 24 months of statements?
Twelve months can help if your income has grown recently. Twenty-four months can help if your income is steady, seasonal or had one slow stretch. Not every lender offers both, and some lenders price them differently, so we run your file both ways where it’s allowed.
Personal vs business statements and the expense factor
With personal statements, lenders typically count business income deposited into your personal account. Some also ask for business statements to show where the money came from.
With business statements, lenders subtract an expense factor to estimate profit. Some use a fixed percentage. Others accept a letter from your CPA or tax preparer stating your actual expense ratio. The method and percentage vary by lender, and industry can matter.
What you’ll provide
- 12 or 24 consecutive months of complete statements, all pages.
- Proof your business is active, such as a license or CPA letter.
- Explanations for large deposits that aren’t regular business income.
- Asset statements for down payment and reserves.
Exact documents vary by lender.
What else lenders look at
Besides deposits, lenders typically review:
- How long the business has been operating, and proof it exists (license, CPA letter or similar)
- Credit history
- Down payment and the source of those funds
- Reserves (savings left after closing)
- Property type and occupancy
- Large or unusual deposits, which may need a paper trail
Requirements vary by lender and program. We don’t quote a minimum score or down payment until we’ve matched your file to a lender.
Bank statement loans above the conforming limit
A bank statement loan describes how income is documented, not how big the loan is. Many bank statement loans are below the conforming limit ($832,750 for a one-unit home in 2026), and some lenders also offer them above it.
Higher-priced Austin homes and self-employed income often go together, and that’s where a standard jumbo loan can get stuck. A standard jumbo typically needs tax returns, W-2s and full documentation, and write-offs that make sense for your business can make those returns look thin. A bank statement loan above the conforming limit is a non-QM loan, not a jumbo program, and it qualifies you on your deposits instead.
Some lenders also accept a profit-and-loss statement, eligible assets, or W-2 income combined with bank statements at loan amounts above the conforming limit. Which paths are available, and the loan size, credit and reserve requirements, vary by lender and scenario. If you have full-doc W-2 income, a standard jumbo loan may fit better, and we’ll compare both.
Bank statement loans vs other self-employed options
A bank statement loan is one of several ways to document self-employed income:
- Tax returns: if your returns show enough income, a conventional loan may fit and often costs less. Compare all paths on our self-employed mortgage options page.
- 1099 income: for contractors paid on 1099s, see 1099 mortgage loans.
- Profit and loss statement: see P&L mortgage loans.
- Assets: if you have significant savings or investments, see asset depletion mortgages.
- WVOE: for wage earners with a written verification of employment, see WVOE mortgages.
- Rental property: a DSCR loan qualifies on the property’s rent, not your personal income. See also DSCR loans in Texas.
- Veterans: a VA home loan may allow zero down.
All of these are part of our non-QM loan options (except conventional and VA, which are agency loans).
The cost trade-off
Non-QM loans usually price higher than conventional loans, because they fall outside agency guidelines. Compare the APR, not just the rate, and weigh the extra cost against what you’d need to qualify another way. If your situation changes, you can talk with us about refinancing options later. See current Austin mortgage rates for context.
Who uses bank statement loans in Austin and Central Texas
In and around Austin, bank statement loans are common with contractors and trades, real estate agents, consultants, creators, restaurant and retail owners, and other small-business owners. Keeping business and personal money in separate accounts for a year or two before you buy makes this kind of loan easier to underwrite. CapFi Lending is based in Austin, focuses on Austin and Central Texas, and is licensed to lend anywhere in Texas. We’re rated 4.9 on Google (79 reviews).
How to get started
Call or text (512) 593-1336, Monday through Saturday from 9 AM to 7 PM, or request a quote. Have 12 to 24 months of statements ready, and we’ll tell you which lenders fit your deposits, your business type and the property. Dustin Edwards has 22 years of experience with self-employed buyers.
Bank Statement Loan Questions
What is a bank statement loan?
A bank statement loan is a non-QM mortgage for self-employed borrowers. Instead of tax returns, the lender uses 12 or 24 months of personal or business bank deposits to estimate your income. It can help when write-offs make your taxable income look lower than what your business actually brings in.
Does CapFi Lending offer bank statement loans in Austin?
Yes. CapFi Lending, an Austin mortgage broker, arranges bank statement loans through more than 50 wholesale lenders. We focus on Austin and Central Texas and are licensed anywhere in Texas. Call (512) 593-1336 to see which lenders fit your deposits and property.
Do I need to provide tax returns?
Usually not for income on a bank statement program, though lenders still verify your business and identity. Requirements vary by lender.
What counts as a deposit?
Business revenue counts. Transfers between your own accounts, loan proceeds and one-time asset sales generally don’t.
Should I use 12 or 24 months of bank statements?
Twelve months can help if your income has grown recently. Twenty-four months can help if your income is steady or seasonal. Not every lender offers both, and pricing can differ between them, so it’s worth comparing your file both ways before you choose.
What is an expense factor?
An expense factor is the percentage a lender subtracts from business deposits to estimate your business expenses. Some lenders use a set percentage, and some accept a letter from your CPA or tax preparer showing your actual expenses. The method and the percentage vary by lender.
How much do I need down for a bank statement loan?
Down payment requirements vary by lender and program, and depend on your credit, loan size and property type. We confirm yours once your file is matched to a lender. For more information, contact us and we will review your options.
For more information, contact us and we will review your options.
What credit score do I need for a bank statement loan?
It varies by lender. Each lender sets its own credit, down payment and reserve guidelines for bank statement loans, and they often work together, so a stronger file in one area can help in another. A broker can match your full profile to lenders whose guidelines fit.
What documents do Austin business owners need for a bank statement loan?
Expect 12 or 24 months of personal or business bank statements, proof the business has operated for a set time (often about two years, depending on the lender), such as a license or CPA letter, plus ID, asset statements and explanations for large deposits. Some lenders also ask for a short business narrative. If you have a CPA-prepared P&L, a P&L loan may be another option.
Is a bank statement loan the same as a jumbo loan?
No. A bank statement loan is about how you document income, not loan size. Many bank statement loans are below the conforming limit. If your loan amount is above the limit, a jumbo loan may also be an option, and a broker can compare both for you.
Can I use a bank statement loan for a larger loan amount?
Yes, some non-QM lenders offer bank statement loans above the conforming limit, qualified on bank statements instead of tax returns. The number of months reviewed, down payment, loan size and credit requirements vary by lender. CapFi Lending compares options across more than 50 wholesale lenders to find the right fit for your income.
How is a bank statement loan above the conforming limit different from a regular jumbo loan?
A regular jumbo usually needs tax returns and full documentation. A bank statement loan above the conforming limit is a non-QM loan that allows alternative income documentation, such as bank statements, a profit-and-loss statement or assets, with terms that vary by lender. It’s often a fit for self-employed buyers whose tax returns don’t show their full income.
Are bank statement loan rates higher than conventional rates?
Usually, yes. Bank statement loans are non-QM, so they typically price higher than conventional loans. Compare the APR, not just the rate, and weigh the cost against your other options. If your tax returns can document enough income, a conventional loan may cost less.
Can I use a bank statement loan for an investment property?
Some lenders allow it. For rental properties, a DSCR loan may fit better, because it qualifies on the property’s expected rent instead of your personal income. Guidelines vary by lender, so we compare both options against your goals, the property and your documents.
- CapFi Lending
- (512) 593-1336
- Mon–Sat 9 AM–7 PM
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