Being self-employed should not stop you from financing commercial real estate in Texas. While traditional banks often struggle to work with self-employed borrowers, Commercial Loans of Texas has multiple programs specifically built for business owners, contractors, consultants, and entrepreneurs.
The Problem with Banks for Self-Employed Borrowers
Banks use tax returns to verify income. Self-employed borrowers often write off significant business expenses, which reduces their adjusted gross income on paper — even when they generate strong actual cash flow. A business owner grossing $400,000 might show only $80,000 in adjusted net income after deductions. The bank lends based on $80,000. We look at the whole picture.
DSCR Loans — No Personal Income Required
The best program for self-employed commercial investors is the DSCR loan. Debt Service Coverage Ratio qualification is based entirely on the property rental income — not your personal income, not your tax returns, not your 1099s. If the property generates enough rent to cover the mortgage payment, you qualify. Period.
Stated Income Commercial Loans
Stated income programs let you state your income without providing tax returns. The lender focuses on the property performance rather than your personal income documentation. These programs are ideal for self-employed borrowers whose tax returns do not reflect their actual earnings.
Bank Statement Loans
Some programs use 12 to 24 months of business bank statements instead of tax returns to calculate qualifying income. The lender looks at actual cash deposits — the real money that flows through your business — rather than the taxable income on your Schedule C. This captures what you actually earn.
Hard Money Loans — The Fastest Path
Hard money loans are the fastest and most flexible option for self-employed borrowers. They are based on the property value, not your income. No W-2s, no tax returns, no employment history verification. Close in 7 to 14 days. The tradeoff is higher rates and shorter terms — most hard money loans are 12 to 24 months.
What Self-Employed Borrowers Need
- For DSCR loans: Property address, current lease/rent rolls, your purchase price or current value. No personal income docs.
- For stated income: Property information, 6–12 months bank statements sometimes helpful to verify cash flow trend
- For hard money: The property address and your down payment. That is it in most cases.
- Credit score: 620+ preferred on most programs, but some go lower — especially hard money
- Entity: Individual or LLC — both work fine
Texas Self-Employed Commercial Borrower Scenarios We Fund
- Restaurant owners buying their own building (cannot show consistent net income due to seasonal and variable expenses)
- Contractors purchasing warehouse and office space
- Medical professionals with complex tax situations buying medical office buildings
- Real estate investors with multiple properties whose tax returns show paper losses from depreciation
- Business owners who took larger distributions in some years than others
Get a No-W2 Commercial Loan in Texas
Call Commercial Loans of Texas at 877-895-3634. We specialize in financing self-employed Texas borrowers who cannot qualify through conventional channels. No upfront fees. Same-day LOI. Direct lender since 1998.