Bank Statement / No-Doc in Texas

It changes your net, not the file. Texas does not have an individual income tax, so rental income from a Texas property is not reduced by a state income tax, which matters most to owners holding from a high-tax state. It does not touch federal tax, and it does not change what we read: 12 to 24 months of deposits, the property, and your reserves. Texas also runs a franchise tax on entities rather than a traditional corporate income tax, which is worth knowing because these files are usually titled in an LLC. How the entity is set up and what it owes is a question for your CPA, not for us.

More than the seller is paying, in most cases. Texas swaps income tax for property tax: the effective rate on housing value runs about 1.40% statewide by Tax Foundation's 2026 figure, and roughly 1.2% to 1.4% depending on the county, with 254 counties each setting rates through their own local entities. The 2025 relief package does not reach you. The larger school district homestead exemption approved as Proposition 13 in November 2025, applying to the 2026 tax year, and the 10% annual cap on appraised value are both homestead items, so a property you do not occupy gets neither. Insurance is moving the same way: Texas average homeowners premiums rose more than 55% between 2019 and 2024, with filed average rate changes of 21% in 2023, 19% in 2024, and 4.3% in 2025. Read the wind and hail deductible on the quote you get, not just the premium. Underwrite the go-forward numbers and have your CPA look at the tax treatment.

Often, and the test is whether stressed rent carries the property. The statewide rental picture is flat rather than climbing: average apartment rent was about $1,452 as of July 2026, down roughly 1% year over year. The for-sale market is flat too, with a $340,000 median in Q2 2026 unchanged year over year, 5.4 months of inventory, and 65 days on market, though that statewide number hides a wide spread. Prices rose in 14 Texas metros in that quarter and fell in 11, so the state average tells you almost nothing about your submarket. If the rent carries the property under a stress test, a DSCR loan is usually the cleaner file. If it doesn't yet, bank statements do the qualifying. Send us the scenario and we'll say which one prices better.

Answer the city question before you count the revenue. Texas has no statewide short-term rental preemption, so cities can and do restrict them, and the rules differ from one jurisdiction to the next. That makes an STR plan a city-by-city question rather than a state one, and the answer can be a registration requirement in one city and a prohibition in a residential district in the next. Confirm the current ordinance with the specific city or county before you underwrite short-term income. Deed restrictions matter too: the Texas Supreme Court held in Tarr v. Timberwood Park Owners Association that a generic residential use restriction does not by itself bar short-term rentals, which means the covenant has to speak to rental activity directly. Read the restrictions with your attorney.

Not for the purchase itself. Texas forecloses non-judicially under Property Code section 51.002. Sales are held on the first Tuesday of the month between 10 a.m. and 4 p.m. at the county courthouse, or at an alternate area the commissioners court has designated, on at least 21 days' notice, with an extra 20-day cure notice required only where the property is the debtor's residence. That is a fixed monthly window and it takes committed funds before the first Tuesday, not after. 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 the asset is yours. Tell us the plan early so both legs line up before auction day.

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, and pricing, terms, and documentation are set in underwriting rather than quoted up front. On the closing side, two Texas facts are worth knowing. First, title insurance premiums are fixed by the state: the Insurance Commissioner is required to promulgate rates, and an order effective March 1, 2026 cut basic premiums 6.2%, so a given policy amount costs the same at every title company in Texas. Shop title on execution and on willingness to handle your structure, never on price. Second, Texas is a non-disclosure state, so sale prices are not recorded publicly and off-market comps are genuinely harder to source here. That puts more weight on the appraisal, which is a reason to bring conservative comps rather than a hopeful number. You can start an application or talk to us first.

Down payment starts at 20%. On a purchase at the Texas statewide median of $340,000 that is $68,000 from you and $272,000 from us (340,000 x 80% = 272,000), before closing costs and reserves. Texas charges no state individual income tax and makes it back on a property tax bill running roughly 1.2% to 1.4% of value, so the escrow line here is heavier than a rate comparison suggests. Get a bound insurance quote before you set the budget. Subject to underwriting.

640 is where this program starts. Sitting near the floor usually means lower leverage rather than a decline, and there is no hard pull to open a file. Income comes from bank statements, or from no income documents at all depending on the structure, so a self-employed Texas borrower is not punished for writing income off. Subject to underwriting.

$100,000 to $3,000,000. Terms run short-term or 30-year, and the loan is investment and business-purpose only, never for a house you live in. If you are holding five or more Texas doors, ask about a portfolio structure instead. Subject to underwriting.