Mortgage Options for Self-Employed Borrowers in Salt Lake City and Salt Lake County

Self-employed homebuyers do not always fit neatly into traditional mortgage income calculations.

A business owner may generate strong recurring cash flow while reporting lower taxable income because of legitimate business deductions and expenses.

A bank statement loan in Salt Lake City may provide another way for qualifying self-employed borrowers to document income.

Instead of relying primarily on W-2 wages or traditional tax-return income, selected mortgage programs may evaluate eligible deposits from personal or business bank statements.

Daniel Paris of UtahLowRate.com helps self-employed borrowers throughout Salt Lake City and Salt Lake County compare available bank statement mortgage programs.

Call Daniel Paris: 801-604-4949
NMLS #243976

What Is a Salt Lake City Bank Statement Mortgage?

A bank statement mortgage is an alternative-documentation loan designed primarily for self-employed borrowers.

Depending on the program, the lender may review 12 or 24 months of eligible bank deposits and apply its approved methodology to determine qualifying income.

The lender also evaluates:

  • Credit
  • Assets
  • Reserves
  • Debts
  • Property
  • Occupancy
  • Loan amount
  • LTV
  • Business history
  • Complete underwriting profile

Bank statement loans remain fully underwritten mortgages.

Who May Benefit?

Potential Salt Lake City borrowers include:

  • Business owners
  • Entrepreneurs
  • Independent contractors
  • 1099 professionals
  • Realtors
  • Consultants
  • Attorneys
  • Physicians and dentists
  • Construction business owners
  • Tradespeople
  • Marketing professionals
  • Agency owners
  • Online business owners
  • Freelancers

The program is based on the borrower's complete financial profile rather than occupation alone.

Personal vs. Business Bank Statements

Personal Statements

Personal bank statements may be used under certain programs when qualifying self-employment income is regularly deposited into the borrower's personal account.

Business Statements

Business bank statements may be used when revenue flows primarily through company accounts.

Because gross business deposits are not automatically the same as personal qualifying income, the investor generally applies an approved business-expense methodology.

How Is Income Calculated?

Assume a business owner has:

Average eligible deposits: $30,000 per month

If the applicable investor methodology produces qualifying income equal to 50% of eligible deposits:

Potential qualifying income: $15,000 per month

Another qualifying investor methodology may produce a different result.

Certain programs may allow calculations resulting in approximately 75% of eligible deposits being considered when supported by applicable guidelines and documentation.

That percentage is not automatic.

Detailed Guide

See our Bank Statement Loan Income Calculator for more examples.

Bank Statement Loans Throughout Salt Lake County

Bank statement financing may be relevant for qualifying borrowers purchasing or refinancing property throughout:

Salt Lake City, Holladay, Cottonwood Heights, Millcreek, Murray, Sandy, Draper, South Jordan, West Jordan, Riverton, Herriman and surrounding communities.

The borrower and property determine the appropriate financing—not simply the ZIP code.

Higher-value homes in communities such as Holladay, Cottonwood Heights and Draper may also make jumbo bank statement financing relevant.

Bank Statement Loans for Salt Lake City Home Purchases

A bank statement mortgage may be used for an eligible purchase transaction.

Reviewing statements before shopping for a home can be especially useful because gross business revenue may be substantially different from qualifying mortgage income.

A preliminary calculation can help determine:

  • Which accounts should be used
  • Whether 12 or 24 months are appropriate
  • How eligible deposits may be calculated
  • Potential qualifying income
  • Available LTV
  • Estimated down payment
  • Reserve requirements
  • Appropriate loan range

Refinancing With Bank Statements

Certain programs may provide:

Rate-and-Term Refinance

Restructure qualifying existing mortgage debt under applicable guidelines.

Cash-Out Refinance

Eligible borrowers may be able to access equity subject to investor cash-out, LTV, credit and reserve requirements.

Jumbo Bank Statement Loans in Salt Lake City

Higher-value homes may require mortgage amounts above conventional conforming limits.

Certain wholesale investors offer jumbo bank statement mortgages for qualifying self-employed borrowers.

Larger transactions generally receive additional scrutiny of:

  • Liquidity
  • Reserves
  • Credit
  • Appraisal
  • Property characteristics
  • LTV
  • Bank statement income
  • Overall financial strength

For high-balance transactions, see Jumbo Bank Statement Loans Utah.

Bank Statement Loan Requirements

Requirements vary among investors, but borrowers should generally expect review of:

  • Bank statements
  • Self-employment documentation
  • Assets
  • Credit
  • Business activity
  • Eligible deposits
  • Property
  • Down payment/equity
  • Reserves

Read our complete Bank Statement Loan Requirements guide.

Bank Statement Loan FAQ — Salt Lake City

Can I get a mortgage without using tax-return income?

Certain bank statement programs may allow qualifying income to be established through eligible bank deposits instead of relying primarily on traditional tax-return calculations.

Do I need 12 or 24 months?

Both structures may be available. The appropriate option depends on the investor and borrower profile.

Can I use business bank statements?

Yes, under qualifying programs.

Can I use bank statement financing for an expensive Salt Lake County home?

Potentially. Select investors offer jumbo bank statement programs.

Can I refinance?

Certain programs permit rate-and-term and cash-out refinances.

For additional questions, visit the Bank Statement Loan FAQ.

Talk With a Utah Mortgage Broker

Daniel Paris can review your bank statement structure and compare available wholesale programs for a Salt Lake City purchase or refinance.

Daniel Paris
Utah Mortgage Broker
NMLS #243976
801-604-4949
UtahLowRate.com

Return to our statewide guide: Bank Statement Mortgage Loans Utah

All loans are subject to underwriting, lender and investor requirements, property eligibility and program availability.