See if you qualify, free, 60-second check.
Bank statement loan rates in Texas run higher than what you'd pay on a conventional mortgage. That's the honest answer. The premium reflects the fact that these loans don't meet Fannie Mae's standard documentation rules, so lenders either hold them or sell them to a smaller private market, and both options cost more than selling to the agencies. For most self-employed Texas buyers, it's still the right call. You're trading a rate premium for not needing two years of tax returns that show write-offs ate your income.
The typical spread above a comparable conventional loan is 0.5 to 1.5 percentage points. Where you land in that range depends on your credit score, down payment, loan size, and which lender you use. Some borrowers with strong profiles pay near the bottom. Others pay more. This guide covers what moves the number and what you can actually do about it before you apply.
Current Texas non-QM rates are at the weekly rate tracker, which updates every Monday. This article explains the structural factors, the things that don't change week to week.
Fannie Mae and Freddie Mac buy conforming loans from lenders. That purchase pipeline lets lenders offer lower rates because they're offloading the risk quickly and efficiently. Bank statement loans don't qualify for that purchase. They're non-QM products, which means lenders hold them on the balance sheet or sell into a smaller private securitization market. Both carry more risk, and that risk shows up in your rate.
It's not a penalty for being self-employed. It's a pricing reality of a smaller secondary market. The non-QM space has grown significantly over the past decade, and spreads have come down from the 2-3 point premiums common in 2013-2015. But they haven't closed entirely, and probably won't, because the underlying risk difference is real.
The rate also reflects income uncertainty. Bank deposits can fluctuate. A dentist who took six months off has a gap in deposit history that shows up in the numbers. A business that had one rough quarter pulls the two-year average down. Lenders price for that variability in a way they don't have to with a W-2 borrower whose income is consistent and easily verified.
The short version: plan to pay more. Then build a plan to reduce the premium where you can. For most Texas self-employed buyers, the alternative is waiting another year or two while continuing to rent. The math often favors buying now at the higher rate.
These are structural ranges, not current quotes. The live rate depends on bond markets that move daily. Check the Texas rate tracker for the current non-QM rate range and how it compares to conventional this week.
A few things to keep in mind when you see a quoted rate. Points matter as much as the rate itself. A lender offering a lower rate might be charging you two points (2% of the loan amount) upfront to buy it down, which changes the math significantly over a 5 to 7 year hold. Get the full cost picture: rate, points, and all lender fees together.
A few levers actually work. Not all of them are available to every borrower, but at least one usually is.
This is the highest-impact single factor. A 720+ score gets you tier-one pricing from most Texas non-QM lenders. Moving from 659 to 720 isn't fast, but it's doable in three to six months if the drag on your score is high revolving utilization or a few small errors on your report.
Pull your credit report before you do anything else. Errors happen. A dispute that corrects an erroneous late payment or a collections account that isn't yours can move your score meaningfully. After fixing errors, pay revolving balances below 20% of each card's limit. Don't close old accounts. Don't open new ones. Then wait three months and check again before applying.
Scores below 660 add to the non-QM spread. Scores below 620 disqualify you from most Texas bank statement programs entirely. If you're at 610, fixing the score first is almost always the better move than applying and paying a higher rate for the next 30 years.
More equity at closing means less risk for the lender. Many Texas bank statement programs price better at 20% down compared to 10%. Going below 70% LTV sometimes qualifies you for a better tier with certain lenders. The trade-off is real: you're tying up capital that could stay in the business. Run the math. If putting an extra $50,000 down saves you 0.25% on a $600,000 loan, that's about $90/month, or roughly $1,100/year. The business would need to reliably return more than that on the $50,000 for keeping it invested to win the calculation.
Some lenders offer slightly better pricing on the 24-month program. The logic is that more history reduces uncertainty. Other lenders price 12 and 24 month programs identically. Ask explicitly: does the statement period affect my rate? If the answer is yes and you have 24 months of clean deposits, use them.
Non-QM pricing varies more across lenders than conforming pricing does. One lender might price your profile at 7.5%. Another might quote 7.0% on the same loan. A broker with access to eight or ten bank statement programs runs your scenario through all of them and finds the best fit. That's not possible if you call one bank directly.
This is less true for conforming loans, where pricing is tighter and Fannie/Freddie's guidelines create more uniformity. Bank statement loans are priced on individual lender risk appetite, and that varies a lot.
Usually not directly. The statement type affects your qualifying income more than your rate in most programs. But it's worth understanding how each is counted, because higher qualifying income can let you take a smaller loan relative to your purchase price, which improves your LTV and can indirectly help your rate.
Business statements: the lender averages your deposits over 12 or 24 months and applies an expense factor, typically 50%, to arrive at qualifying income. A business averaging $25,000/month in deposits qualifies as roughly $12,500/month in income. Read the detailed breakdown at how bank statement loan income is calculated.
Personal statements: lenders count deposits at 100%, minus transfers and identifiable non-income items. Works well for sole proprietors who run all income through one account. The qualifying income is typically higher than what the same deposits would generate under a business statement program, because there's no expense factor applied.
Some lenders specialize in one or the other. A lender who does mostly business-statement volume may have tighter pricing on that program. Ask which type they prefer to see, and then decide based on what your actual deposit history shows.
Texas self-employed buyers sometimes look at multiple non-QM options before deciding. Here's how bank statement loans generally compare:
DSCR loans: For investment properties only. The property's rental income qualifies it, your income doesn't enter the picture. Rates are usually similar to bank statement loans or slightly higher, depending on the market. A completely different product for a different use case. If you're buying a rental property alongside your primary residence, read the guide on DSCR loans in Texas.
ITIN loans: For buyers without a Social Security number. Rates run at or above bank statement loan rates in most Texas programs. Available from a smaller set of lenders. See the ITIN home loans guide if this applies to your situation.
Asset depletion loans: Lenders divide liquid assets by the loan term to generate a monthly income figure. Rates vary widely because fewer lenders offer them and pricing isn't standardized. The guide on asset depletion mortgages in Texas covers when this option makes sense.
For most Texas self-employed borrowers purchasing a primary residence or second home, a bank statement loan is the best-rate option in the non-QM category. The comparison to think about is bank statement vs just waiting to buy conventionally with cleaner taxes. If that wait is two or three years, the higher rate today often wins.
Texas homestead law caps cash-out refinances at 80% LTV on primary residences. Article XVI, Section 50(a)(6) of the Texas Constitution. This isn't bank-statement-specific, but it shapes how much equity you can pull on a refi. If you're buying with the plan to do a cash-out refinance later, factor in that 80% ceiling when you model the returns.
Property type matters too. Single-family homes get the best pricing. Condos (especially non-warrantable ones), 2-4 unit properties, and mixed-use buildings all carry slightly higher rates because lenders see them as more risk or harder to liquidate. Most Texas bank statement programs cover single-family, condos, and 2-4 units. Commercial properties need a different loan type entirely.
Texas doesn't have state income tax, which is one reason the state has attracted so many self-employed business owners and high earners. That's also why the bank statement lending market here is active. More Texas lenders offer these programs than in most states, which means more competition and, generally, better pricing for borrowers who shop around.
For the full requirements checklist, read bank statement mortgage requirements. It covers documentation, minimum credit scores, reserves, and what lenders are actually looking for.
The structural factors above explain the range. Your actual quote depends on your specific credit file, deposit history, property, and which lender you're working with. There's no substitute for running your actual scenario.
Start with the free 60-second eligibility check at our application page. No credit pull at that stage. You'll get matched with a licensed Texas professional who works with bank statement programs daily and can tell you where your profile lands in the current market.
Current Texas non-QM rate ranges are at the weekly rate tracker, updated every Monday.
This site connects borrowers with licensed Texas mortgage professionals. It's not a lender, and nothing here is a commitment to lend. It's not a government program.
See what you qualify for in 60 seconds, free and no credit check. Use the eligibility check at the top of this page.
Yes, consistently. The typical premium is 0.5 to 1.5 percentage points above a comparable conventional loan. The spread reflects the smaller secondary market for non-QM loans. It's the trade you make for qualifying on deposits instead of tax returns.
720 or above puts you in the best pricing tier for most Texas non-QM lenders. Scores between 660 and 719 qualify but come with a higher spread. Below 660, the premium grows. Most Texas bank statement programs require at least 620 to get started.
Sometimes. Some lenders price the 24-month program better because the longer history reduces income uncertainty. Others don't differentiate. Ask your lender directly whether the program length affects your rate before deciding which statements to submit.
They're usually similar, and sometimes DSCR rates run slightly higher depending on the market. The key difference is the property type and income approach. Bank statement loans use your personal or business income. DSCR loans qualify the property on its rental income alone. Different products, not directly comparable except as a rate-check.
Yes, generally. More equity reduces the lender's risk. Going from 10% to 20% down often improves your rate. Dropping below 70% LTV can unlock better tiers with some lenders. Run the math against what that capital earns in your business to see whether the rate improvement justifies tying it up.
Free, no-obligation. See what you qualify for in about a minute.