A bank statement loan allows self-employed home buyers in Utah to qualify for a mortgage using their personal or business bank statements instead of tax returns. This program helps entrepreneurs, freelancers, and 1099 workers verify income through consistent deposits, making it easier to buy a home even without traditional W-2 documentation.
In the past, these loans were called stated income loans or even no documentation loans. Over time, the programs disappeared and then when they came back these loan programs developed into what we now call bank statement loans. So, whether you live in Salt Lake City, West Valley City, Provo, West Jordan or anywhere else we can help you!
We will walk you through everything you need to know about Utah bank statement loans and then connect you with one of our loan officers to answer your questions and get pre-approved. Contact us here
Utah Bank Statement Loan Programs
Borrowers in Utah will qualify based upon the 12-24 month bank deposits (both personal and/or business accounts). These bank statements are what the we will use to determine whether you have a steady flow of funds coming in to support your future mortgage payments.
It is a great alternative for self employed people who cannot qualify based upon the net income on their tax returns and are looking for a self employed mortgage.
How Do You Qualify for a Utah Bank Statement Mortgage
These are just general guidelines and may vary slightly based upon your personal scenario. So, we encourage you to click to speak with one of our loan officers to have a free no obligation discussion.
- You must be self employed
- Down Payment – 10-20% down. Possibly more if you have a bankruptcy or bad credit.
- Credit Scores – We may allow scores as low as 550. We suggest speaking with one of our loan officers to find out what your personal scenario is.
- Bank Statement Requirements – Most programs require you to supply 12-24 months’ worth of bank statements. We will use your average monthly deposits and will use that as income.
- P&L Statements – It is possible that the underwriter may require you to provide a P&L statement.
- Assets – Your assets must be fully verified.
- Property Types – Single family, Second home and investment
*If you do not meet ALL of these requirements we recommend that you still contact us. Our loan officers can often help if you have compensating factors.
Utah Bank Statement Loan Rates
You can expect bank statement loans to have rates anywhere from 1%-3% higher than a conventional loan. Your rate will be based upon your credit score, down payment, and whether you plan to occupy the home as your primary residence.
The rates for a bank statement loan are the same in Utah as they are on most other states. We will do our best to get you the lowest rate possible given your scenario. In the video below, we will talk more about bank statement loan rates.
Case Study
We recently spoke with someone who is a 1099 wage earner. When you are 1099, it is treated just like you are self employed from a tax perspective. You have the ability to write off all of your legitimate business expenses. Unfortunately this results in a lower net income which makes it harder to qualify for the loan amount needed.
This individual with the 1099 income could not use tax returns to qualify but had a high average monthly deposit total into her bank account. Her credit scores were over 750 which meant her down payment was just 10%.
The rate that she was offered was competitive and just 2% over the conventional rate at that time.
Utah Bank Statement Loan Pros and Cons
   Pros
- Helps self employed borrowers to qualify for a mortgage without using tax returns to prove income
- Can be done in some instances with only 10% down
- Bank statement mortgage rates are just slightly higher than conventional rates
- Up to 50% DTI – Debt to income depending upon your scenario
- Typically no pre-payment penalties
- Available in all 50 states
   Cons
- You need to be self employed for a minimum of 2 years
- If your credit score is extremely low, it may result in a higher down payment
- Rates are slightly higher than conventional but not much more
- Not all lenders offer this program
- Not available in government loans such as FHA, VA or USDA
Frequently Asked Questions
Do I have to be self employed? Yes, at least one borrower on the loan must be self employed for a minimum of two years.
Can I finance an investment property? Yes, you can get a bank statement loan for an investment or even a second home.
Can I use my personal bank statements in addition to my business statements? Yes, we will allow you to use both bank statement accounts.
If IÂ have a low credit score, can I still qualify? Yes, we will allow for scores as low as 580.
If I filed for bankruptcy, can I still qualify? Yes, we can still help you with your loan but your down payment requirement may change.
If my business is losing money, can I qualify? You may still qualify based upon your bank deposits.
Still have questions? Contact us!
We are able to help you to find a bank statement loan in the following states: Alabama, Alaska, Utah, Arkansas, Utah, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming.