Where to find a bank statement loan in Schertz, Texas

If you plan on buying property in Schertz, Texas, when you’re self-employed, a bank statement loan may be a viable option. Unlike traditional mortgages, with a bank statement loan, you qualify for the mortgage based on your statements instead of your tax returns.

This hugely benefits self-employed individuals, freelancers, contractors, and gig workers. However, finding a bank statement loan in your area may seem overwhelming.

This article will explore how bank statement loans work, the perks of using one, and where you can find one in Schertz, Texas.

What is a Bank Statement Loan?

Texas bank statement mortgage loans allow you to verify your income by providing documented bank deposits instead of traditional employment documents such as W-2s, pay stubs, and tax returns.

A lower DTI ratio can justify a higher loan amount, and a higher monthly income typically results in a lower DTI. However, borrowers without full-time employers may find providing the required traditional employment documents challenging. In such cases, these individuals opt for bank statement loans instead of traditional mortgages.

Taking out a bank statement loan is extremely useful if you can’t provide traditional tax documents for income verification or if your income appears smaller than it actually is because of write-offs.

How to Find Bank Statement Loans in Texas

Bank statement loans are classified as “non-qualified mortgages” (Non-QM) since they do not meet the conforming loan standards set by Fannie Mae and Freddie Mac. As a result, not all mortgage lenders offer this type of loan, and many banks and credit unions choose not to offer them.

You’re in luck since you can get a bank statement loan from New Horizons Lending in Schertz, Texas. If you’re ready to apply for a bank statement mortgage, contact us today!

Advantages of Bank Statement Loans

Tailor-made for Self-employed Individuals

Self-employment is a booming trend that is expected to become the dominant form of work in the USA. As of now, there are approximately 60 million self-employed Americans, and this number is continuously increasing.

However, the majority of these self-employed Americans do not possess pay stubs or W-2s that meet the conventional criteria for traditional loans, despite earning income and having savings in their bank accounts. In such cases, bank statement mortgages are a viable option.

Can Be Used for a Range of Property Types

Unlike conventional loans, which restrict the type of property you can purchase with the loan, bank statement loans offer greater flexibility. Bank statement mortgages have no property-type restrictions. You can use this loan to buy a primary residence, second home, vacation, and investment properties.

Conclusion

To summarize, a bank statement loan can provide a useful alternative for individuals seeking financing in Schertz, Texas. With the rising trend of self-employment, bank statement mortgages offer a viable solution for securing a loan without traditional employment documents such as pay stubs.

If you’re ready to apply for a self-employed mortgage loan, contact our loan officers to start the mortgage application process.