Mortgage Financing for Utah County Business Owners

Utah County includes a substantial population of entrepreneurs, independent professionals, contractors and business owners whose income may not fit traditional mortgage documentation.

A bank statement loan in Utah County may allow qualifying self-employed borrowers to establish income through eligible personal or business deposits.

Communities Covered

This resource serves borrowers considering property in:

Lehi, Provo, Orem, American Fork, Alpine, Highland, Pleasant Grove, Saratoga Springs, Eagle Mountain, Spanish Fork and surrounding Utah County communities.

Who May Use a Bank Statement Mortgage?

Examples include:

  • Technology consultants
  • Independent contractors
  • Agency owners
  • Construction companies
  • Realtors
  • Medical practitioners
  • Legal professionals
  • E-commerce operators
  • Marketing companies
  • 1099 professionals
  • Other self-employed borrowers

How Is Income Determined?

A lender may review 12 or 24 months of eligible deposits.

For business statements, an investor-approved expense method is generally applied.

Not all deposits count.

Transfers, loans and other non-income transactions may need to be excluded.

Example

Suppose average eligible business deposits equal:

$25,000/month

With a methodology resulting in 50% being treated as qualifying income:

$12,500/month

Another qualifying program may produce a different calculation.

Visit Bank Statement Loan Income Calculator for detailed examples.

Buying in Lehi, Alpine or Highland

Higher purchase prices can increase the importance of:

  • Down payment
  • Credit
  • Reserves
  • Loan amount
  • LTV
  • Income calculation

Some higher-balance purchases may require jumbo bank statement financing.

Refinancing

Select programs may permit both rate-and-term and cash-out refinances.

Underwriting terms can differ from purchase financing.

FAQ

Can an independent contractor use bank statements?

Potentially, provided applicable program requirements are satisfied.

Can I qualify with 1099 income?

A bank statement program may be one option. A dedicated 1099 mortgage program may also be worth comparing.

Can I finance an Alpine or Highland luxury home?

Potentially. Jumbo bank statement financing may be available to qualified borrowers.

Can I use multiple business accounts?

Certain programs permit multiple accounts provided transfers are properly identified.

Utah County Bank Statement Mortgage Review

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

Return to Bank Statement Mortgage Loans Utah for the statewide resource.