A bank statement loan qualifies self-employed borrowers using 12–24 months of business or personal bank deposits instead of tax returns. If you write off aggressively and your tax returns understate your real income, this program lets your actual cash flow — not your adjusted gross income — qualify you for a mortgage.
Why borrowers choose this program
- Qualify on deposits, not tax returns
- Ideal for business owners, contractors, realtors, and 1099 earners
- Personal or business statement options (12 or 24 months)
- Available for purchases, refinances, and investment properties
How lenders count your income
The lender averages your qualifying deposits over the statement period, applying an expense factor (often 50%, lower with a CPA letter) to business-account deposits. Rates run somewhat higher than conventional — that’s the trade for skipping tax returns — but for many Utah business owners it’s the difference between buying now and waiting two tax years.
Expect to need decent credit (typically 620+, better pricing at 680+), 10–20% down, and consistent deposit history. Large irregular transfers need documentation, so clean statements help.