Question 1

Who around Waco actually uses a bank statement loan instead of a conventional one?

Accepted Answer

Mostly the self-employed trades and the STR operators the city already requires to keep clean income records. Waco's employer base includes construction and trade firms like Big Creek Construction, Brazos Masonry, Lochridge Priest, Leland Collier Electric, Capstone Mechanical and Rabroker Air Conditioning, and those firms lean on a layer of small subcontractors and 1099 operators who file returns built to minimize taxable income, not to prove it to a lender.

Question 2

I operate a short-term rental in Waco and my paperwork is hotel tax filings, not clean W-2s. Does that work here?

Accepted Answer

It can, because you're already keeping the kind of records this program reads. Waco requires every STR to remit a combined 15% hotel occupancy tax (7% city, 6% state, 2% county) and to produce city and county tax records before a license renewal will even process. That paper trail of actual deposits is closer to what a bank statement file looks for than a tax return written to lower what you owe.

Question 3

I'm a subcontractor working cash and 1099 jobs across McLennan County. Can bank statements substitute for tax returns here?

Accepted Answer

Yes, that's the point of the program. We qualify on 12 to 24 months of deposits instead of a return, which matters in a county where a large share of construction and trade income moves through small operators supporting the metro's bigger contractors rather than through payroll. A thin or write-off-heavy return doesn't have to be the ceiling on what you can borrow.

Question 4

If I'm self-employed and want to rehab a house near Baylor, does this program cover the renovation too?

Accepted Answer

This program qualifies your income, not the rehab budget. Renovation work, especially near Baylor, has its own local wrinkle: a heavy gut that crosses 30% to 50% of the building's appraised value (the percentage rises as the building value falls) trips Waco's College and University Neighborhoods overlay, adding parking, pedestrian-way and design requirements. For the rehab dollars themselves, pair a bank-statement-style income read with our fix and flip loan, which is built for the short-term, asset-focused side of that deal.

Question 5

What should a self-employed buyer budget for property taxes on a Waco investment property?

Accepted Answer

Plan on roughly 2.2484 per $100 of value inside the city, with no homestead relief since it's not your primary residence. That's county 0.334805 plus McLennan Community College 0.131974 plus City of Waco 0.755000 plus Waco ISD 1.026600, per the county's 2025 adopted rate table, and McLennan County has proposed a further increase for tax year 2026. Build that carry cost into the deposit history you're using to qualify, not just the purchase price.

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.

Bank Statement / No-Doc in Waco

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