Adam Styer, Texas Mortgage Broker, NMLS #513013

Mortgage for Business Owners in Austin, TX

Self-employed, K-1, S-corp, investor, or HNW? Your tax returns understate what you actually earn. I run the math the bank won't — across 40+ wholesale lenders, statewide in Texas.

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Client Reviews | 1,000+ Loans Closed | Licensed in Texas | NMLS #513013

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What happens next

  1. Adam uses your contact info and loan goal to follow up and gather the missing scenario details.
  2. On that call, he reviews the income, property, or build details and tells you what is worth documenting next.
  3. You get a no-pressure next step, even if a bank already said no.

No judgment. You do not need a perfect tax return to start the conversation.

CPA, advisor, or agent with a client scenario? Talk through it with Adam.

NMLS#: 2526130 (Company) · 513013 (Adam Styer)

By Adam Styer, NMLS #513013 · Senior Loan Officer, Adam Styer | Mortgage Solutions LP · Austin, TX · 1,000+ loans closed since 2017 · Updated May 17, 2026

If you own a business, take K-1 distributions, run rentals, or live off of liquid assets, the conventional mortgage box was not built for you. I'm Adam Styer. I've closed more than 1,000 loans across Texas since 2017, and most of them have one thing in common: the borrower's tax returns understated what they actually make. This page is the front door to every program I use to fix that — bank statement, P&L, 1099-only, asset depletion, DSCR, jumbo, and one-time-close construction — for Austin and the rest of Texas.

Who This Page Is For

If you nod at any of these, keep reading:

  • Self-employed Schedule C filer. Consultant, contractor, gig worker, agency owner. Your CPA optimizes your return down to nothing.
  • S-corp or LLC owner taking a modest W-2 salary and pulling the rest as distributions or retained earnings.
  • K-1 partner — law firm, medical group, holding company, PE/VC professional — with high ordinary income but a tangled liquidity story.
  • Real estate investor with single-family rentals, short-term rentals, or small multifamily, vested in an LLC or trust.
  • High-net-worth borrower sitting on $1M–$10M+ in liquid assets but limited W-2 income — recent exit, retirement, family money, or pre-IPO equity.
  • 1099 contractor (real estate agent, insurance agent, locum-tenens physician, commission-only sales).
  • Texas custom-build buyer putting up a Hill Country, Westlake, or Lakeway primary at $1M–$5M+.

The Austin MSA is now the 25th-largest metro in the US at 2.55 million residents. Travis County's median household income is $99,611, and the $200K+ bracket is the single largest household-income segment in the county. 17.03% of Austin city households earn $200K+. A huge share of that wealth shows up as K-1s, Schedule Cs, S-corp distributions, and brokerage statements — not W-2s. The big banks underwrite to the W-2.

The Loan Menu — Programs for Business Owners and Investors

There is no single "self-employed mortgage." There are seven distinct doors. Picking the right one — and the right wholesale lender behind it — is where the qualifying income on the same borrower can swing by six figures. Here's the map.

1. Bank Statement Loans (12 or 24 month)

Qualify on bank deposits instead of tax returns. The underwriter averages eligible deposits over 12 or 24 months, strips out transfers and one-time deposits, and applies an expense factor (50% is the industry default for business accounts; service businesses see 25–35%; contractors and restaurateurs see 60–70%). A CPA letter can lower the expense factor — some lenders may accept a CPA-attested expense factor when the file supports it. Minimum credit typically starts at 660; higher-LTV options are generally reserved for stronger credit profiles and clean documentation. Full bank statement loan guide →

2. P&L Only Mortgages

A CPA, IRS Enrolled Agent (EA), or CTEC-registered tax preparer signs a profit and loss statement covering at least 12 months plus year-to-date. The lender uses the P&L net income (plus add-backs for depreciation and amortization) as qualifying income. Some programs require zero bank statement review at lower LTV tiers — meaningful for borrowers with messy or co-mingled accounts. Loan amount caps vary by investor and should be checked against current guidelines. P&L mortgage in Texas →

3. 1099-Only Programs

Built for commission-only earners — real estate agents, insurance agents, locum physicians, independent contractors. The lender takes gross 1099 income (1 or 2 years) and applies a flat expense factor, commonly 10%. Far friendlier than running Schedule C net through conventional underwriting. A small number of investors may consider lower scores with larger down payments and stronger compensating factors, but guidelines change by lender. 1099-only mortgage in Texas →

4. K-1 and Partnership Income (Agency, Done Right)

This one is agency-eligible — but most loan officers get it wrong. At 25% or more ownership, Fannie Mae's B3-3.3-07 requires either documented stable cash distributions or a business liquidity test (current ratio ≥ 1.0). Add-backs from Form 1065 or 1120S (depreciation, depletion, amortization, non-recurring losses) frequently lift qualifying income by 30–50%. As of March 4, 2026, Fannie's B3-3.4-19 update lets borrowers under 25% ownership qualify on W-2 wages alone without full self-employment analysis. Huge win for law-firm and PE partners. K-1 income mortgage guide →

5. Asset Depletion / Asset Utilization

Convert liquid wealth into qualifying monthly income. Freddie Mac §5307.1 divides eligible assets by 240 months (20 years) for borrowers age 62+. Fannie Mae uses 360 months. Some non-QM lenders may use shorter divisors, including 60 months, when the file fits — six times the qualifying income from the same dollars. Retirement balances under age 59½ are typically discounted to 70% of vested value. Stacks on top of W-2 or self-employment income. Asset depletion mortgage in Texas →

6. DSCR Loans (Investor Cash Flow)

For rentals. The property's gross rent divided by PITIA (principal + interest + taxes + insurance + association dues) must hit the DSCR threshold the lender wants — often around 1.00 or higher for stronger pricing, with lower-ratio structures available only on select programs and usually with trade-offs. Many DSCR programs do not rely on personal tax-return income. LLC vesting may be available by program. Short-term rentals can qualify on either 12 months of platform income or AirDNA projections. DSCR loans in Austin →

7. Jumbo and One-Time-Close (OTC) Construction

The 2026 conforming loan limit in Travis County is $832,750 — same as every Texas county, since no county qualifies as high-cost. Anything above is jumbo or non-QM. For custom builds, one-time-close construction loans wrap the construction loan and permanent take-out into a single closing, governed in Texas by Article XVI §50(a)(5) of the state constitution. Hill Country custom homes run $180–$300/sq ft, with typical client spend $900K–$2.5M and premium builds $1.5M–$15M. Jumbo loans → · OTC construction →

Why Your CPA Is Making Your Mortgage Harder

This is the conversation I have every week. A founder, a doctor, a contractor walks in saying "I bring in $400K but my CPA says I can't qualify for the house I want." They aren't wrong. They're just looking at the wrong door.

The tax code rewards business owners for shrinking taxable income. Section 179 expensing, vehicle depreciation, home office, business meals at 50%, qualified business income deduction, retirement contributions, health insurance premiums, depletion, amortization — every one is a legitimate deduction that lowers the line conventional underwriting reads. A $250K-revenue consultant routinely shows $80K of Schedule C income. A $1.5M-revenue medical practice can leave the partner with $200K of K-1 ordinary income on paper.

Fannie Mae and Freddie Mac see the small number. The non-QM bank-statement lender sees the deposits. The P&L lender sees what the CPA actually wrote on the engagement letter. The asset depletion lender sees the $2M brokerage account. None of those programs care that your CPA optimized you down to $80K — and the rate premium for a non-QM program is almost always less than the cost of pretending you make $80K and qualifying for half the house.

Three additional realities about the Austin market that push business owners into non-QM:

  • The conforming limit caps out at $832,750. With city-of-Austin median sales price at $573,750 (April 2026) and 2,700+ million-dollar homes sold in Austin over the trailing 12 months, plenty of business-owner buyers cross into jumbo territory.
  • Investor purchases are 18% of all US home transactions (Redfin Q3 2025), and Texas is one of the three most active DSCR markets nationally.
  • The 1099 economy is structurally growing. Non-employer businesses are now 78.4% of all US businesses, expanding at 2.7% per year — roughly double the growth rate of employer firms. Tech-employer Austin shrank 1.6% in 2024, with 10,300+ WARN Act notices filed locally — many of those workers converted to consulting and contracting.

Deal Archetypes I Close Regularly

The scenarios below are illustrative archetypes that represent the types of files I underwrite — not real client data. Numbers are typical for Austin in 2026 and meant to show how the math works.

Archetype 1 — Westlake S-Corp owner, $1.4M purchase

Marketing agency owner, S-corp, 3 employees. Pays himself $90K W-2 from the S-corp; $480K of net income flows through as distributions and retained earnings. Tax returns show ~$200K combined. Conventional max around $750K. Solution: 12-month business bank statement loan, 25% expense factor (CPA letter), 20% down. Qualifying income ~$32K/month. Closes at $1.4M jumbo non-QM in 28 days.

Archetype 2 — Law firm partner, 30% ownership, $1.1M purchase

K-1 partner at an Austin litigation firm. Ownership 30% — triggers full self-employment analysis under Fannie Mae B3-3.3-07. Ordinary K-1 income $420K, but firm distributions cover only ~$200K of it; the rest is retained for working capital. Solution: pull the 1065 returns, prove current ratio ≥ 1.0 on firm balance sheet, apply Form 1084 add-backs (depreciation, amortization). Qualifying income lands at $32K/mo using the lower of two years. Agency-eligible conventional jumbo, no rate premium.

Archetype 3 — Recent exit, asset-rich, income-light, $2.2M purchase

Founder sold a SaaS company 14 months ago. $4.2M sitting in a brokerage account, $600K in an old 401(k), $300K cash. Currently consulting part-time for ~$120K/year. Conventional underwriting can't get to $2.2M on $120K. Solution: asset depletion with an 84-month divisor — eligible assets net of down payment and reserves divided by 84 — adds roughly $48K/month of qualifying income that stacks on top of consulting income. Closes at $2.2M in Northwest Hills.

Archetype 4 — Investor adding a Fredericksburg short-term rental, $725K

Owns three Austin rentals already. Adding a Wine Country STR. Conventional capped at 10 financed properties and would scrutinize his DTI. Solution: DSCR loan vested in LLC. Property's projected revenue from AirDNA ($265 ADR, 54% occupancy in the Austin region; Fredericksburg often higher) divided by PITIA delivers DSCR of 1.18. 25% down, 720 FICO, prepayment penalty 3-year. Closes in 25 days, no personal income reviewed.

Archetype 5 — Hill Country custom build, $1.9M finished, one-time close

Family selling in Travis County, building 4,200 sq ft in Blanco County. Lot acquired separately; build budget $1.9M finished. Solution: one-time-close construction-to-perm loan. Single closing, builder vetted and approved, fixed-price contract, 5-draw schedule, interest-only on disbursed balance during construction. Texas Constitution §50(a)(5) requirements followed exactly — both spouses sign, 5-day waiting period, 3-day rescission. Permanent loan modifies on certificate of occupancy. One set of closing costs instead of two.

Quick Decision Matrix — Which Program Fits

Not a substitute for an actual conversation, but a useful starting frame:

If you are… Start with Also consider
Self-employed sole prop, co-mingled accounts Personal bank statement loan P&L only
S-corp / LLC owner, separate business account Business bank statement P&L only with CPA letter
K-1 partner ≥ 25% ownership Conventional/jumbo Form 1084 Bank statement if liquidity fails
K-1 partner < 25% (law/PE/holding co.) Conventional W-2 only (B3-3.4-19) Asset depletion top-up
1099 commission earner, 90%+ of income 1099-only program Bank statement
HNW with $1M+ liquid, modest income Asset depletion (60–84 mo divisor) Pledged asset / SBL
Investor buying rentals (LLC ok) DSCR Bank statement (if low DSCR)
Custom build $1M+ in Hill Country One-time-close construction Two-time close + jumbo end-loan

What About the Rate?

Every business owner asks this. The honest answer: non-QM rates run above comparable conventional rates. The premium covers the expanded documentation risk and varies by program, FICO, LTV, and lender. Exact spreads are deal-specific — no lender publishes a universal rate sheet for non-QM, and anyone who quotes you a one-line "non-QM rate" without seeing your file is guessing.

What I tell business owners every day: the cost of a slightly higher rate on the right loan is almost always lower than the cost of qualifying for half the house, or worse, getting declined. Once your tax-return profile improves — a few stronger years, or you change how you take income from the business — we refinance to conventional.

If you want a real number, send me a quick application or your last 12 months of bank statements. I'll run pricing across 40+ wholesale lenders and give you a fitted quote, not a range pulled from thin air.

Why Work With Me

I'm an independent mortgage broker, not a retail loan officer at a bank. That distinction matters for business owners more than for any other borrower type. A retail LO has one product set — their employer's. I shop your file across 40+ wholesale Non-QM and agency lenders and pick the one that prices your deal correctly.

Closed 1,000+ loans across Texas since 2017. Clear communication and proactive timeline management. 5-star average across client reviews. Licensed in Texas with NMLS #513013; company NMLS #2526130. Office at 5718 Sam Houston Circle, Austin TX 78731.

My specialty is the file that the big bank punts on: the K-1 partner the underwriter can't figure out, the founder with a $4M brokerage and no W-2, the Schedule C filer whose return reads like a charity case, the investor on his eleventh property. That's not a niche to me — that's most of my pipeline.

FAQ — Mortgage for Business Owners in Austin

Yes. Self-employed Austin borrowers can qualify using 12 or 24 months of bank statements, a CPA-prepared P&L, gross 1099 income, or asset depletion — without providing tax returns. These are non-QM programs designed for owners whose returns understate cash flow due to legitimate write-offs. Minimum credit usually starts at 660–680, with 10–20% down depending on program and credit.

The tax code rewards write-offs. Section 179, vehicle depreciation, home office, business meals, retirement contributions, and health premiums all reduce taxable income legitimately. A contractor with $250,000 in revenue can show $80,000 of net Schedule C income. Fannie Mae sees the $80,000 figure. Non-QM bank statement and P&L programs underwrite the actual cash flow instead.

The 2026 baseline conforming loan limit for a one-unit property in Travis County is $832,750, up $26,250 from 2025. No Texas county qualifies as high-cost in 2026, so the same limit applies statewide. Any loan above that amount in Austin is either jumbo or a non-QM portfolio product. Source: FHFA 2026 Conforming Loan Limit Values.

Bank statement loans use 12 or 24 months of deposits with an expense factor applied. P&L loans use a CPA, EA, or CTEC preparer-signed profit and loss statement, often with no bank statement review at lower LTV tiers. 1099-only loans use gross 1099 income with a flat haircut, often with a program-specific haircut. The right pick depends on your filing structure and which document set tells the cleanest income story.

Asset depletion converts liquid wealth into qualifying monthly income. The lender totals eligible cash, after-tax investments, and retirement balances (haircut applied), then divides by 60, 84, 120, 240, or 360 months depending on program and age. A 60-month divisor produces roughly six times the qualifying income of a 360-month divisor on the same assets. Stacks on top of W-2 or self-employment income.

DSCR qualifies an investment property on its own cash flow — rent divided by principal, interest, taxes, insurance, and HOA. Personal income, tax returns, and DTI are not reviewed. Use DSCR when the property pencils, the borrower is taking on a rental, or when personal income is volatile. Use bank statement or P&L when buying a primary or second home, or when the property does not cash flow on its own.

Yes, on agency loans, with conditions. At 25 percent or more ownership, the K-1 income is treated as self-employment and requires either documented stable distributions or a business liquidity test (current ratio at or above 1.0). Below 25 percent ownership, Fannie Mae's 2026 update lets a borrower qualify on W-2 wages alone without full self-employment analysis. Add-backs from the 1065 or 1120S can lift qualifying income materially.

One-time-close construction loans cover the construction and permanent financing in a single closing — one set of closing costs, one rate lock spanning the build. Texas Constitution Art. XVI §50(a)(5) governs construction liens on homestead property and requires spousal joinder, a five-day waiting period, and a three-day rescission right. Jumbo OTC programs cover $1M–$5M+ Hill Country and Westlake builds where most national bank construction product stops.

Usually yes. Non-QM programs price above comparable conventional loans to cover the expanded documentation risk. The premium varies by program, credit, LTV, and doc type. For a self-employed borrower whose tax returns understate income, qualifying for the right house at a slightly higher rate beats not qualifying conventionally at all. Rates can also be refinanced later if your tax-return profile improves.

Most pre-approvals are issued within one business day of a complete application. Bank statement, P&L, 1099, asset depletion, and DSCR loan timelines depend on the program, property, appraisal, title, and documentation. Clean statements, fast document responses, and no last-minute large deposits keep the file stronger in a competitive Austin purchase market.

On DSCR investor loans, yes — LLC, S-corp, C-corp, and revocable trust vesting are all allowed and common. A personal guaranty is still required. On owner-occupied loans, vesting goes in the individual borrower's name. For estate or asset-protection structures on a primary, talk to your attorney about a post-close transfer into a revocable trust — usually permitted under the Garn-St. Germain Act.

10% down is achievable on bank statement loans with strong credit (720+) and a clean two-year self-employment history. 15–20% down is the most common entry point across non-QM. DSCR investor loans typically require 20–25% down. Loan amounts above $1 million usually require 20–25% down regardless of credit. Asset depletion programs sit in the same range, with reserves often the binding constraint.

Reviewed May 2026 by Adam Styer, NMLS #513013.

Related Complex-Income Pages

Each of the loan types on this page has its own dedicated guide with worked examples, lender mechanics, and Austin-specific math:

Run the Numbers on Your File

Send me your last 12 months of bank statements, your last two K-1s, or just your liquid balance sheet. I'll tell you what loan amount you actually qualify for — usually same day. Austin-based, licensed across Texas.

Review My Business Scenario Book a 15-Minute Call →

Or call (512) 956-6010 — NMLS #513013