Question 1

How do Austin property taxes affect what I can carry on an investment purchase?

Accepted Answer

Plan for a bigger tax bill than the seller's. Investment property in Texas gets neither the homestead exemption nor the 10% annual homestead cap on appraised value, so a house that was capped under an owner-occupant can be reassessed to market once you own it. Combined all-entity rates are commonly reported around 1.78% to 2.10% in Travis County and 2.00% to 2.35% in Williamson County, and the exact figure depends on the school district, city, MUD, and any PID at that address. Insurance is moving the same direction: the Texas Department of Insurance recorded statewide homeowners premium increases of 21.1% in 2023, 18.7% in 2024, and 4.3% in 2025. Underwrite the go-forward tax and insurance numbers, not the seller's, and run the tax treatment past your CPA.

Question 2

I'm self-employed and buying an Austin rental. Do you look at the rent as well as my deposits?

Accepted Answer

Yes, and in this market we underwrite effective rent rather than advertised rent. Austin's rental market is absorbing a large supply wave: as of June 2026, roughly 73% of metro apartment units were advertising a concession, metro apartment occupancy ran about 86% to 88%, and blended median rent across all types was $2,517, down 6.63% year over year. Those are apartment figures and they don't transfer directly to a single-family rental, but they tell you what a two-months-free special does to a pro forma. If the property carries itself on rent, a DSCR loan may be the cleaner fit; if it doesn't yet, bank statements can do the work. We'll tell you which one prices better for your file.

Question 3

Can I qualify on bank statements if the plan is to run the property as a short-term rental?

Accepted Answer

Get the City of Austin license first, because without it there is no revenue to underwrite. Austin requires a license for every short-term rental unit, and licenses are non-transferable, so the seller's does not come with the house. A new license runs $836.30 and a renewal $385.30, with two-year terms since October 1, 2025. Effective July 1, 2026, booking platforms must show the license number on every Austin listing, must pull a listing within 10 days of a city delist notice, and may not collect booking fees on an unlicensed rental. Suburban rules differ city by city and change often, so confirm with the city before you count on short-term income.

Question 4

Who actually funds an Austin bank statement loan, and how does closing work in Texas?

Accepted Answer

We originate it and a lending partner funds it, so your application finishes on the partner's portal. We review your scenario either way and stay with the file, and terms, pricing, and documentation are set in underwriting rather than quoted up front. Closing follows Texas custom: a closing attorney is not typical here, and a title or escrow company acts as the neutral escrow agent, holding funds, running the signing, and disbursing afterward. Texas has no state real estate transfer tax, and title insurance premiums are promulgated by the Texas Department of Insurance, so the premium doesn't vary between title companies. Shop title on service and on whether they'll handle your structure, not on price. You can start at apply.

Question 5

I want to bid at a Travis County foreclosure auction. Is a bank statement loan the right tool?

Accepted Answer

Usually not for the purchase itself. Texas forecloses non-judicially under Property Code section 51.002, sales happen on the first Tuesday of the month between 10 a.m. and 4 p.m. at or near the county courthouse, and notice has to be posted at least 21 days out. That is a hard, short, monthly window, and a document-driven income review is not built for it. Buy with short-term money such as fix and flip or bridge financing, then use a bank statement loan for the longer-term hold once you own the asset. Tell us the plan early so both legs are lined up before auction day.

Question 6

Does the 2026 Austin slowdown change how much I can borrow?

Accepted Answer

It changes the exit math more than it changes the loan. As of August 2026 the Austin area was carrying roughly 5.9 to 6.0 months of inventory, a median 68 days on market, and 55.57% of active listings had already taken at least one price cut. The core and the suburbs are also pulling apart: in July 2026 the city of Austin median was $577,000, down 1.4% year over year, while the wider metro median was $435,000, up about 1%. Value is what the appraisal supports, so a file that leans on a hopeful resale number is the one that gets cut back. Bring conservative comps and a longer marketing period into your plan.

Question 7

What credit score do I need for a bank statement loan in Austin?

Accepted Answer

640 and up. This is a documented-cash-flow program rather than an asset-only one, so credit carries real weight in the file. What it does not require is tax returns or W-2s: we read 12 to 24 months of deposits instead. No hard credit pull to start. Subject to underwriting.

Question 8

How much do I need to put down on an Austin bank statement loan?

Accepted Answer

From 20%. The exact number moves with your deposit history and the property. For a self-employed Austin buyer, the thing that usually decides the file is not the down payment but how clean the deposits are: consistent business deposits into one account read far better than the same money spread across four. Subject to underwriting.

Question 9

What is the smallest bank statement loan you will write in Austin?

Accepted Answer

$100K, up to $3M. Business-purpose and investment property only. If you are self-employed and buying a home to live in, this is not the program, and we will say so rather than run you through underwriting first. Subject to underwriting.

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