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

How does the 2.2484 per $100 Waco stack size the cash on a bank statement purchase?

Accepted Answer

It sits on top of a 20% down payment, and credit starts at 640. On a $250,000 purchase that is $200,000 from us and $50,000 from you (250,000 x 80% = 200,000). Size the cash with carry in view: an investment property at a city of Waco address in Waco ISD runs about 2.2484 per $100 of value with no homestead exemption to soften it. Income comes from bank statements, or on some files no income documents at all, so a write-off heavy return is not the ceiling on what you can borrow. Subject to underwriting.

Question 7

Is there a minimum loan size on a Waco bank statement loan?

Accepted Answer

Loan amounts run $100,000 to $3,000,000. Terms go short-term or 30-year, and the property has to be investment or business-purpose, not the house you live in. Where the floor binds is a single low-value door, so ask before you assume a small McLennan County file is too small to write. Subject to underwriting.

Question 8

Do the Waco hotel occupancy tax records the city already makes me keep stand in for tax returns?

Accepted Answer

The deposits behind them do. We read 12 to 24 months of deposits, not a return. We read 12 to 24 months of deposits instead of a return, and on some files no income documents at all. If you run a Waco short-term rental, the city already makes you produce city and county hotel occupancy tax records before it will renew a license, and that deposit trail is closer to what this file reads than a return written to lower what you owe. Credit still applies and starts at 640. Subject to underwriting.

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