Question 1

Who in Galveston County actually needs a bank statement loan instead of a conventional one?

Accepted Answer

Mostly the self-employed side of a tourism and marine economy. Accommodation and food services is the county's single most over-concentrated private sector, at a location quotient of 1.69 and an average weekly wage of $510, and construction runs a 1.17 location quotient at $2,002 a week. Short-term rental hosts, charter and fishing operators, and the island's contractors and trades are the working profile behind those numbers, and most of them get paid as 1099 or through an LLC, not a W-2. A return built to hold taxable income down reads thin to a conventional underwriter; 12 to 24 months of deposits reads what the business actually took in.

Question 2

My income swings with the tourist season. Does that rule me out of a bank statement loan?

Accepted Answer

No, that's the problem a bank statement loan is built to solve, not a disqualifier. The island's self-employment income runs on spring break and summer, so a single peak month overstates what the business does the rest of the year. We work from a 12 to 24 month average of what actually moved through your accounts, which smooths that season out instead of asking your busiest month to stand in for a salary.

Question 3

I'm looking at the no-doc option that leans on the property instead of my income. What should I know about insurance here first?

Accepted Answer

Budget for wind as a separate policy, because in Galveston County it usually is. This county is TWIA's single largest exposure in the state, and TWIA writes about 75% of its residential wind coverage. Any structure that's had a re-roof, addition or repair since January 1, 1988 needs to stay windstorm-certified to keep that coverage in force. A no-doc loan leans on the asset holding its value and its insurability, so a lapsed windstorm certificate or an uninsurable gap is exactly what breaks that structure. You also can't finance a TWIA premium through a premium finance company as of September 2025, so plan to carry it as cash or on TWIA's own installment plan.

Question 4

My income comes from managing short-term rentals on the island. Does that affect how you look at my deposits?

Accepted Answer

Not the deposits themselves, but the calendar around them. A Galveston STR license runs January to December, the $250 fee is due by December 31, and a late filing adds a $500 penalty, so a licensed host's bank statements will show that cost most years around year-end. The license is also non-transferable: if you bought the rental business rather than started it, your own deposit history is what we're reading, not the seller's, since the prior operator's license doesn't carry over to you. If you'd rather qualify on the property's rent than your own deposits, see the Galveston DSCR program.

Question 5

How much do I need to put down on a Galveston bank statement loan?

Accepted Answer

From 20% of the purchase. On a $300,000 Galveston County property that is up to $240,000 from us and $60,000 from you (300,000 x 80% = 240,000), qualified on bank statements rather than tax returns. Terms run short-term or 30-year, so the same deposit history can support a bridge or a long hold. If your down payment is thinner than that, the honest answer is usually a different structure, not a stretched bank statement file. Subject to underwriting.

Question 6

Is there a minimum credit score for a Galveston bank statement loan?

Accepted Answer

Yes. This program starts at a 640 credit score. That is the one place a bank statement loan looks like a bank: the income side is 12 to 24 months of deposits with no W-2s and no tax returns, but the credit floor is real. If you are under 640, the asset-based programs, fix and flip and bridge, carry no minimum score at all, and weaker credit there is usually handled with lower leverage rather than a decline. A seasonal Galveston income does not hurt the score side either way. Subject to underwriting.

Question 7

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

Accepted Answer

$100,000, up to a $3 million ceiling. That range covers most of the island and mainland inventory a self-employed Galveston County buyer is looking at, on a short-term or 30-year structure with 20% down. The loan is investment and business-purpose only, so it is for the rental, the flip or the building your business uses, not a primary residence. Subject to underwriting.

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