Question 1

I'm a contractor working the Denton building boom and my income is deposits into a business account, not a W-2. Does that fit here?

Accepted Answer

Yes, that's exactly the borrower a bank statement loan is built for. The cost side of a Denton build is well documented: a new single-family permit runs $0.89 per square foot plus a $141 plan review fee, and water and wastewater impact fees on a standard meter run roughly $8,300 to $22,500 per door depending on the lot's plat date and zone. Trades and subcontractors working those jobs often get paid into a business account long before any of it shows up on a Schedule C. We read 12 to 24 months of bank statements instead of a tax return, with loan amounts from $100K to $3M, credit from 640, and down payments from 20%, subject to underwriting.

Question 2

I run a small business near UNT or TWU. My return doesn't reflect what the business actually brings in. What do you look at?

Accepted Answer

Deposits, not the number your accountant wrote down for the IRS. UNT enrolled 43,567 students in Fall 2025 against roughly 6,416 on-campus beds, and TWU adds 15,424 more across its campuses, so a large student population sources everything from housing to services from small, often self-employed operators around both campuses. A write-off-heavy return that makes a business look thin on paper doesn't have to work against you here. Send 12 months of statements and we'll tell you what they support.

Question 3

If you aren't reading my tax returns, does the property tax stack still matter to the deal?

Accepted Answer

Yes, because the bill lands on the property whether or not it lands in your paperwork. A rental inside the city of Denton stacks roughly $0.185938 per $100 (county, tax year 2025) plus $0.595420 (city, FY 2025-26) plus about $1.2069 (Denton ISD) for a combined rate near $1.99 per $100, before any special district. Investment property gets no homestead exemption and no 10% appraisal cap, so that full rate applies from year one. Budget the real carry cost and confirm your parcel's exact rate with the Denton Central Appraisal District before you close.

Question 4

I'm self-employed and want to hold the property as a short-term rental to cover the payment. Does that change how I qualify?

Accepted Answer

Your income documentation stays the same, but the property's STR eligibility is a separate, parcel-specific question. A bank statement loan qualifies on your deposits regardless of how you plan to use the property. City of Denton short-term rental rules, tightened effective January 1, 2025, require $100 annual registration, cap residential-zoning registrations citywide at 1,000, allow a maximum of 2 certificates per parcel, and require 100 feet of separation between STRs in residential districts, on top of a 7% city hotel occupancy tax. Confirm zoning, cap room, and separation before you underwrite nightly-rental income as your exit; a long-term lease is the safer base case if any of that is unconfirmed.

Question 5

Who funds a Denton bank statement loan, and how does closing actually run?

Accepted Answer

We originate it and a lending partner funds it, so your application finishes on the partner's portal. We review the scenario either way and stay with the file. This is business-purpose financing on investment property only, and pricing, documentation and final terms are set in underwriting, not quoted up front. If your deal also involves buying at the courthouse steps, Texas forecloses non-judicially under Property Code section 51.002, with sales held the first Tuesday of the month; Denton County's specific designated sale location was not confirmed in our research, so verify it directly with the county before you plan around it. You can start an application or talk to us first.

Question 6

What is a bank statement loan, and how is it different from a no-doc loan?

Accepted Answer

A bank statement loan qualifies you on 12 to 24 months of business or personal bank deposits instead of tax returns, which suits self-employed borrowers whose returns understate their real income. A no-doc (or no-ratio) loan goes further and leans on the property and your reserves rather than any income calculation. Both are business-purpose loans for investment property, not consumer mortgages.

Question 7

Do I really not need tax returns or W-2s?

Accepted Answer

Correct. We do not ask for tax returns, W-2s, or pay stubs on these programs. We verify the deal, your credit, and either your bank-statement cash flow or your reserves, depending on the structure. It is built so write-offs and a complex return do not work against a strong borrower.

Question 8

Who is a bank statement or no-doc loan best for?

Accepted Answer

Self-employed investors, business owners, and 1099 or commission earners whose write-offs shrink their taxable income. If your bank deposits tell a stronger story than your tax return, this is usually the right fit.

Question 9

What credit score and down payment do I need?

Accepted Answer

We lend from a credit score of 640, with the best terms going to stronger credit, and a down payment starting around 20%. Across the market these programs often want 660 or higher and 20% to 30% down. Stronger credit and more equity improve both your rate and your leverage.

Question 10

What rates and terms can I expect?

Accepted Answer

Pricing is higher than a fully documented conventional loan because the lender takes on more uncertainty, and it varies with your credit, leverage, and the structure. We offer both short-term and long-term options, so we match the term to whether you are flipping, bridging, or holding.

Question 11

Can I close in an LLC?

Accepted Answer

Yes. These are business-purpose loans and routinely close in an LLC or other entity. Holding investment property in an entity is standard and often preferred.

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