Utah & Idaho · Self-Employed Borrowers

Your tax returns don’t have to be the whole story.

If you write off expenses, reinvest in your business, or just don’t look simple on paper, a bank statement loan can qualify you on what you actually deposit — not what your accountant made disappear.

Licensed in Utah and Idaho ยท NMLS #2852905

Why self-employed borrowers get stuck

Traditional mortgage underwriting was built around a W-2 and a pay stub. If you’re self-employed — a business owner, a 1099 contractor, a consultant, a real estate investor — your tax returns often tell the worst possible version of your income, because a good accountant’s whole job is to lower your taxable income.
A bank statement loan flips the underwriting: instead of your tax returns, I use 12–24 months of your bank statements to calculate what you actually bring in. No tax returns required for qualifying income, and no employment verification in the traditional sense.

Who this is for

Business owners

Two or more years running your own business, with deposits that tell a fuller story than your Schedule C.

1099 contractors & consultants

Freelancers and contractors whose income fluctuates or comes from multiple clients.

Real estate investors

Investors and landlords whose depreciation and write-offs make tax-return income look thin.

What it takes to qualify

12–24 months of statements

Personal or business bank statements, depending on the program. I’ll tell you which one fits your situation.

Typically 10–20% down

Down payment requirements run higher than a conventional loan, and vary by credit and loan amount.

Two years self-employed

Most programs want at least two years in the same business or line of work.

In Utah

Utah has one of the highest self-employment rates in the country, and one of the highest shares of women-owned small businesses. If you’re a business owner along the Wasatch Front — Salt Lake City, Provo, Park City, or anywhere in between — a bank statement loan is often the more accurate way to qualify, especially for higher-value homes where your real cash flow matters more than a simplified tax-return number.

In Idaho

Idaho’s self-employed and small-business population has grown right alongside its housing market, from Boise to Coeur d’Alene to the smaller towns in between. The same bank statement structure applies here: if your tax returns don’t reflect what you actually earn, we build your file around your deposits instead.

Bank statement loan vs. conventional loan

Same goal — a mortgage — two different ways of proving you can afford it.
At a glance
FeatureBank Statement LoanConventional Loan
Income documentation12–24 months of bank statementsW-2s, pay stubs, 2 years of tax returns
Tax returns requiredNoYes, typically 2 years
Typical down payment10–20%+As low as 3–5% on many programs
Typical minimum credit620–660+ (varies by lender)620+ (varies by program)
Self-employment historyUsually 2+ yearsN/A — built for W-2 employment
Best fitBusiness owners & 1099s whose tax returns understate real incomeBorrowers whose W-2 or tax returns already show sufficient income
Figures above are typical ranges, not guarantees — actual terms depend on the specific program, your credit, reserves, and the lender underwriting the loan.

Example: how the math actually works

This is a simplified, illustrative example — not a quote or a promise of what you’d qualify for.
Illustrative scenario — general contractor near Provo, UT
StepFigure
24 months of business bank deposits, averaged monthly$19,500 / mo
Lender-applied expense factor (varies by lender & business type, often 40–60%)−50% → $9,750 / mo qualifying income
Other monthly debts (car, credit cards, existing mortgage)$1,100 / mo
Resulting income available for housing payment (approx., program-dependent DTI limits apply)~$3,000–$3,700 / mo
Very roughly translates to a loan amount in the range of$450,000–$550,000, before rate, taxes & insurance are factored in
The expense factor is the number that moves the most, and it’s set by the specific program and how your business is structured — not a fixed industry rule. Send me your actual statements and I’ll run your real numbers instead of an estimate.

When this probably isn’t your best option

Your tax returns already show enough income

If a conventional loan qualifies you comfortably on your tax returns, it will very likely carry a lower rate than a bank statement program — there’s no reason to pay the non-QM premium.

You’ve been self-employed under 2 years

Most bank statement programs want two years in the same business. A handful allow one year with strong compensating factors — worth a conversation, not a guarantee.

Your statements show frequent large NSFs

Regular overdrafts or big unexplained transfers can lower your qualifying income or your pricing. Cleaning up statements for a few months before applying often helps more than switching programs.

Common questions

Depends on the program. Twelve-month programs typically price slightly higher than 24-month programs since the lender has less history to underwrite against. I’ll tell you which is available for your situation and how each prices out.
They can. Underwriters look at large, frequent, or unexplained negative balances as a risk signal, and they can reduce your calculated qualifying income. A few isolated NSFs usually aren’t disqualifying — a pattern of them is a bigger issue.
Often, yes — some programs let you combine both, or use business statements with a CPA or third-party letter confirming your ownership percentage and typical expense ratio. I’ll match you to the version that uses your strongest numbers.
That can work in your favor. Some programs blend a W-2 co-borrower’s traditional income with your bank-statement-calculated income, which can improve your qualifying amount and sometimes your pricing.
Generally yes — bank statement loans are non-QM products and typically carry a rate premium over conventional financing, since the lender is taking on documentation flexibility as added risk. How much higher depends on your credit, down payment, and the specific program.
Yes, many bank statement programs cover primary residences, second homes, and investment properties, each with somewhat different down payment and reserve requirements.
Most bank statement programs start around 620–660, though your rate and required down payment improve meaningfully as your score climbs. There’s no single universal minimum — it varies by program.
A lender totals your eligible deposits over the statement period, applies an expense factor (an assumed percentage treated as business cost, which varies by lender and sometimes by industry) to the remainder, and that becomes your monthly qualifying income. I walk through this calculation with you before you apply, using your real statements.
MS
WRITTEN BY

Matthew Smith

Mortgage Loan Originator, NMLS #2852905, licensed in Utah and Idaho with NEXA Lending. I underwrite these programs directly — this page reflects how I actually structure these loans for borrowers, not a general web summary.
Program names, documentation requirements, and expense-factor assumptions vary by lender and change over time. Nothing on this page is an offer of credit, a rate quote, or tax advice — consult a CPA about how a bank statement program may affect your specific tax and business situation. Information last reviewed August 2026.

Related guides

Investing in rental property too?

DSCR loans qualify you on the property\u2019s income instead of your bank statements \u2014 useful once you\u2019re scaling a portfolio.

Buying your first home?

See the full range of purchase loan options in Utah and Idaho.

Think your tax returns are underselling you?

Send me your last 12–24 months of statements and I’ll tell you honestly what they qualify you for.
Loans with Matthew Smith
Matthew Smith · NMLS #2852905
NEXA Lending · Company State License# AZBK – 2006218 | NMLS# 1660690
Licensed in Utah and Idaho.
⌂  EQUAL HOUSING OPPORTUNITY
Funding timelines vary by borrower, property, and circumstance, and are not guaranteed. This is not a commitment to lend or an offer of credit. All loans subject to credit approval, income and asset verification, and underwriting. Rates, programs, and down payment assistance amounts change without notice and are subject to availability — confirm current terms before relying on any figure on this site. Nothing on this site is tax, legal, or investment advice; consult a qualified professional about your specific situation. Residential mortgage products are offered in Utah and Idaho only. Commercial-purpose and business-purpose financing (including DSCR and investor loans) is not consumer credit and is not subject to consumer mortgage protections such as TILA/RESPA.

⌂ Equal Housing Opportunity. NEXA Lending · Company State License# AZBK – 2006218 | NMLS# 1660690. NMLS Consumer Access: https://www.nmlsconsumeraccess.org/