Legitimate business deductions can make a tax return understate what a business actually brings in. Here is the public guidance on documentation paths, and how Texana describes its bank-statement review.
A tax return and a business’s cash flow are not always the same number.
If you are self-employed, deductions that lower your taxable income can also make your tax return understate the cash your business produces. Some mortgage reviews look at bank-statement deposits for income instead of, or alongside, tax returns.
The Consumer Financial Protection Bureau notes that self-employed and irregular-income borrowers typically need more extensive documentation, and that requirements vary by lender and situation. Agency guidance such as Fannie Mae’s Selling Guide describes a separate path built around signed federal tax returns. Bank-statement review is a different path, and Texana describes its own version of it below — read both before assuming which one applies to you.
Bottom line: tax returns are not the only way a lender can document self-employed income, but every path still has its own documentation, and requirements vary by lender.
Borrower Review
Two different documentation paths, reviewed side by side.
The tax-return path
Fannie Mae’s Selling Guide (B3-3.5-01) describes conventional underwriting for a self-employed borrower (25%+ ownership) built around signed federal tax returns and a written cash-flow analysis, with listed exceptions.
The bank-statement path
Texana’s bank-statement page describes reviewing a consecutive run of personal or business deposits, identifying and excluding transfers and one-time items, without using tax returns for the income calculation.
Ask your lender which applies
The CFPB says self-employed documentation needs vary by lender and situation — ask upfront which path a given program uses before assuming either one.
Underwriting Notes
Why deposits and tax returns can tell different stories.
Neither path is automatically better. They document income differently, and each has its own review beyond the income number.
Deductions lower taxable income, not necessarily cash flow
A business can be healthy and still show modest taxable income after legitimate deductions. That is the gap tax-return-only underwriting can miss, and the reason bank-statement review exists as an alternative.
Tax-return underwriting still has a defined place
Agency guidance keeps the tax-return path for a reason: it is a documented, standardized way to verify income when the return does support the payment. It is not automatically the wrong fit for every self-employed borrower.
A bank-statement review still excludes what is not income
Texana’s public description separates gross deposits from eligible deposits — transfers between your own accounts, one-time items, and non-business deposits are identified before qualifying income is calculated. Credit, assets, property, and occupancy are still reviewed either way.
Common Traps
Do not let self-employed income get oversimplified.
"Bank statements always work better than tax returns"
Not always. The tax-return path can be the more efficient one when the return already supports the payment; the right path depends on the file.
"Every deposit counts as income"
No. Texana’s public description states that transfers, one-time deposits, and non-business deposits are typically identified and excluded before an average is calculated.
"Checking my options requires a hard credit pull"
Texana’s public site describes an initial soft-inquiry review that does not affect your credit score; a hard inquiry only comes later if you move forward with a full application.
Related Self-Employed Pages
Keep the borrower path connected.
Sources checked September 15, 2026. The CFPB provides the self-employed documentation guidance (page last modified December 12, 2024). Fannie Mae’s Selling Guide B3-3.5-01 describes the conventional tax-return underwriting path. Texana’s bank-statement and apply pages are the source for Texana’s own process statements. Educational content only — not a rate quote, approval, or commitment to lend.
Bring your bank statements, business type, purchase or refinance goal, assets, and credit range. We will review the file before guessing which documentation path fits.
Sometimes. Some lenders review consecutive personal or business bank statements to document income for self-employed borrowers when tax returns understate cash flow. Requirements vary by lender and program — the CFPB notes that self-employed borrowers need more extensive documentation and should ask each lender what is required.
Fannie Mae’s Selling Guide (B3-3.5-01) centers conventional underwriting for self-employed borrowers on signed federal tax returns and a written cash-flow analysis. That tax-return path is different from a bank-statement review.
Texana’s public bank-statement page describes reviewing income from a consecutive run of personal or business bank statements, states tax returns are usually not used for the income calculation, and describes identifying transfers and one-time deposits before averaging. Credit, assets, property, and loan purpose are still reviewed. Confirm current details on the live product page.
No. Texana’s public description states that transfers between your own accounts, one-time deposits, and deposits not from the business are typically identified and excluded before an average is calculated. Gross deposits and eligible deposits are different totals.
Texana’s public site describes an initial review that uses a soft credit inquiry that does not affect your credit score, with a hard inquiry only occurring later if you move forward with a full application. A soft inquiry is not an approval.
Use the inquiry form on this page, or call (888) 272-8264. Have statement pages for the months your program requests organized by account before you apply.
Call Texana Bank Mortgage at (888) 272-8264.
Reviews
What borrowers say about Texana Bank
Real reviews from real borrowers, pulled live from our Google Business Profile.
Texana Bank helped me with the purchase of my third home, and honestly, the experience was the smoothest of all three home purchases. I only worked with Lynette, but she was friendly, helpful, and courteous at all times. She was extremely patient with me, and she took time to answer all my questions. Even more impressive is that the bank worked with me through a challenging employment situation. Never once was I made to feel bad about asking questions, and Lynette's responses were lightning fast. This was one of the best experiences I have ever had with any company, bar none. I highly recommend Texana Bank to anyone.
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Overdue but thanks again Adam, I appreciate you going above and beyond to make sure my family got our dream home. 10 stars.
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★★★★★
My experience with Lynette was the best and easiest experience it could’ve possibly been when being a first time home buyer. She’s very kind, communicative, reliable, and so much more! It made the whole process that much less stressful and overwhelming. So blessed to have had her on my side!
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★★★★★
Adam McCormick is fantastic! Easy to work with and keep me informed every step of the way! Looking forward to working with him again in the future
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★★★★★
Adam was phenomenal from start to finish! He was friendly and professional. He assisted me every step of the way, walking me through the process with ease. He was always there for whatever questions I had. He was very, very patient and always reached out to me in a timely manner if I contacted him and he was unavailable at the time. Moreover, he made me feel as if he cared for more than just my loan, but me as a person!!! Texana is blessed to have him as an associate!!
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Clay Ragsdale
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Where to really start. Adam walked me through everything and put me at ease. I have had some bad experiences with other companies so I was digging and looking for any red flag. There was none with him and his direct talk is what did it for me. Someone that is real and just says what it is. No false hope or misdirection at anytime.
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Belvia Lynn
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Joseph Hardman
★★★★★
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Marsha Kessler-Bradshaw
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I was about to go with another company for this refinance no cash out until I received a call from this Adam McCormick. He was so knowledgeable and made me feel very comfortable with this process. Adam is knowledgeable ,courteous, understanding and has a real passion and patience for people. 👍We are at the closing. Thank you Adam McCormick!!
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Peter Jenkins
★★★★★
My situation had its difficulties. Justin was confident and persistent through the process and we the got the result
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Dale Samuel
★★★★★
Mark has been very professional and has been very respectful to my wife and myself.
Mark has shown that genuine human qualities and really worked with us and for us.
This actually been a pleasure to get to know Mark.
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James Fields
★★★★★
Outstanding Service and support from a truly Customer Oriented Agent! My pleasure to have worked with Mr. MCcormick.! Would follow him to next source if necessary. He is concerned in an outstanding balanced way. My pleasure to?know and do Business with him and The Bank!
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Rose Stone-Stewart
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Greg was awesome and the process was simple. I have nothing but the highest praise for the process and for Greg himself. Thank you.
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Ronald Bylsma
★★★★★
Best refi experience of our lives, Andre was very knowledgeable and always kept us calm when things got stressful. Would recommend Mr. Andre Floyd to anyone looking for a great lending officer!
