Self-Employed Mortgage Options in Southern Utah

Self-employed borrowers in Southern Utah may have difficulty documenting income through traditional mortgage calculations when business deductions reduce taxable income.

A bank statement loan in St. George, Utah may allow qualifying borrowers to use eligible deposits from personal or business accounts as an alternative method of documenting income.

These programs may be useful for business owners, entrepreneurs, independent contractors, 1099 professionals and other self-employed borrowers.

Areas Served

Bank statement mortgage programs may be considered for qualifying borrowers throughout:

St. George, Washington, Ivins, Santa Clara, Hurricane and surrounding Southern Utah communities.

How a Bank Statement Mortgage Works

Depending on program requirements, a lender may review 12 or 24 months of statements.

The process typically includes:

  • Identifying qualifying accounts
  • Reviewing recurring deposits
  • Removing transfers
  • Excluding non-income activity
  • Applying the investor's expense methodology
  • Averaging qualifying monthly income
  • Reviewing credit and assets
  • Confirming reserves
  • Evaluating the property
  • Completing underwriting

Business Bank Statements

Business statements may be appropriate when revenue primarily flows through an operating company.

An expense calculation generally applies because business gross revenue is not automatically personal income.

Personal Bank Statements

Certain programs permit personal statements when qualifying self-employment income is deposited into the borrower's personal accounts.

St. George Purchase Financing

Bank statement loans may be used for qualifying purchases.

A preliminary income review before home shopping can help establish:

  • Estimated qualifying income
  • Potential purchase range
  • Down payment
  • Reserve needs
  • Suitable documentation method

Refinance Options

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

Cash-out transactions can have different maximum LTV and reserve requirements.

Jumbo Bank Statement Financing

Higher-value properties may require jumbo financing.

Select investors provide jumbo bank statement programs for qualified self-employed borrowers.

See Jumbo Bank Statement Loans Utah.

FAQ

Can I use bank statements instead of tax-return income?

Certain programs may permit qualifying income to be established through eligible bank deposits.

Can business owners qualify?

Bank statement mortgages are primarily designed for self-employed borrowers.

Can I use 12 months instead of 24?

Certain programs offer 12-month documentation; others require or benefit from a longer period.

Are investment properties eligible?

Certain investors permit them. DSCR should also be considered for rental properties.

Contact Daniel Paris

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

Return to Bank Statement Mortgage Loans Utah.

Program availability and underwriting requirements vary.