Specialty & Non-QM Loans in North Dallas, TX

A specialty mortgage loan (often called a non-QM loan) is a flexible financing solution for credit-worthy borrowers who don't fit into the rigid "W-2 box" of traditional government lending. At First Lonestar Bank, we provide portfolio loans, including Bank Statement and DSCR programs, to help self-employed entrepreneurs and 1099 professionals in Frisco and the DFW area qualify for a home, with common-sense underwriting based on their actual cash flow.

Why Consider a Specialty Mortgage in North Texas?

Traditional banks often rely on the "bottom line" of your tax returns, which can be misleading if you have significant business write-offs. In the greater Dallas/Fort Worth area, where an estimated 1.5 million residents are 1099 workers, the need for a lender who understands "outside-the-box" income is higher than ever.

We offer specialized paths for those with unique financial structures:

• Bank Statement Loans: Instead of tax returns, we use 12 or 24 months of average business bank deposits to determine your qualifying income. This is the gold standard for self-employed business owners.
• DSCR (Debt Service Coverage Ratio) Loans: Designed for real estate investors. We qualify the loan based solely on the rental income generated by the property you are buying, meaning your personal income isn't even part of the equation.
• Non-Prime & "Recent Event" Loans: We believe a past credit hurdle shouldn't permanently block homeownership. We offer programs for borrowers with a recent bankruptcy or foreclosure, focusing on your current liquidity and down payment rather than your past.

The First Lonestar Difference

As a community bank in Frisco, we "bend over backwards" to look at your entire financial story. Because we hold these specialty loans in our own portfolio, we don't have to wait for a "yes" from a national headquarters. We make local decisions based on your business's actual health and your personal cash flow.

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Specialty Loan Frequently Asked Questions (FAQs)

Do I need a higher down payment for a specialty loan?

Because the bank assumes more individual risk by using alternative documentation, these loans typically require a larger down payment, often 15% to 20%, although this can vary based on your overall assets and credit history.

What exactly is a "portfolio loan"?

A portfolio loan is a mortgage that First Lonestar Bank keeps on its own books rather than selling to a federal agency such as Fannie Mae. This gives us the authority to use human underwriting to approve unique situations that "big box" lenders are forced to turn down.

Can I get a specialty loan as a 1099 contractor?

Absolutely! Our bank statement programs are specifically designed for 1099 "gig-workers," freelancers, and independent contractors with high liquidity but variable monthly income streams.

The Fine Print

This is not a commitment to lend; you must submit additional information for review and approval. Rates, Annual Percentage Rates (APRs), and terms are subject to change without notice. Certain restrictions apply to all programs. See your FLB Mortgage Loan Officer for complete program guidelines, loan application, applicable fees and annual percentage rates (APRs) for all loan programs. Full underwritten approval is required, and all loan approvals are subject to credit, income, and asset reviews and approvals. Bank NMLS#1215182