Utah Small Business Owners With Low Taxable Income May Still Qualify for a Mortgage

This type of loan is commonly referred to as a bank statement mortgage or non-QM bank statement loan.

SALT LAKE CITY, UT, UNITED STATES, September 22, 2026 /EINPresswire.com/ -- FOR IMMEDIATE RELEASE

Utah Small Business Owners With Low Taxable Income May Still Qualify for a Mortgage

Steve Saxton, Self-Employed Loan Strategist with Christian Roberts Mortgage, is helping self-employed Utah homebuyers solve one of the most common mortgage problems facing business owners: strong cash flow, but not enough taxable income showing on their returns.

Saxton recently closed a jumbo bank statement loan for an out-of-state buyer purchasing in Heber City, Utah, after multiple lenders had told the borrower the file would be difficult or potentially impossible to qualify.

The borrower owned 50% of an Arizona-based business, had more than 20% available for a down payment, and was shopping for a home between $2.5 million and $3 million.

He and his wife were also building a custom home in Tuhaye valued at approximately $12 million and wanted a home to live in during construction.

The borrower made substantial money each month.

The problem was his tax returns.

After reviewing the personal and business returns, Saxton determined that the borrower’s K-1 income and taxable income did not provide enough qualifying income for a traditional jumbo mortgage.

The business, however, was highly profitable.

Depreciation, amortization, legitimate business deductions and sophisticated tax planning had reduced the income ultimately reported on the borrower’s personal tax returns.

“The borrower did not have an earnings problem,” Saxton said. “He had a documentation problem.”

That distinction changed the loan.

After asking additional questions about the business, Saxton determined that a 12-month business bank statement mortgage could be a viable option.

Twelve months of business bank statements were collected and eligible deposits were averaged.

Because the borrower owned 50% of the company, only 50% of the eligible deposits were attributed to him.

A 50% business expense factor was then applied under the selected loan program.

That calculation produced enough qualifying monthly income to approve the mortgage.

This type of loan is commonly referred to as a bank statement mortgage or non-QM bank statement loan.

Instead of relying solely on tax-return income, the lender evaluates actual business deposits and then adjusts those deposits based on ownership and business expenses.

That does not mean every deposit counts.

Transfers, borrowed money and non-business deposits may need to be excluded.

It also does not mean the borrower avoids normal underwriting.

The Heber City buyer still had to satisfy significant jumbo loan requirements.

Because of the size of the transaction, the file required substantial post-closing reserves.

Reserves are funds that remain available after the borrower has paid the down payment, closing costs and other required funds.

If a loan requires 12 months of reserves and the qualifying housing payment is $18,000 per month, for example, the borrower may need approximately $216,000 in eligible assets remaining after closing.

Large bank statement loans may also require additional valuation work, including a second appraisal or appraisal review depending on the lender and loan size.

Borrowers may also need to verify prior mortgage or rental payment history.

Business ownership and time in business may need to be documented through a CPA, accountant or other acceptable third party.

The lender may also independently verify that the company remains open and operating.

In this case, the business was located in Arizona while the property was being purchased in Utah, so underwriting also needed to understand how the borrower would continue operating the business after the move.

These loans are not available through every bank or traditional mortgage lender.

Many banks and private banking divisions operate within narrower underwriting guidelines.

Mortgage brokers with access to specialized wholesale non-QM lenders may be able to offer additional ways to document income that are not available through a traditional retail bank.

That matters for self-employed borrowers.

A business owner can have excellent credit, significant assets, strong cash flow and a large down payment and still fail a traditional mortgage income calculation.

That does not automatically mean the borrower cannot qualify.

It may mean the wrong documentation method is being used.

“Not every loan officer has access to these programs, and access alone is not enough,” Saxton said. “You have to understand business ownership, deposits, expense factors, reserves and the rest of the jumbo underwriting requirements.”

The Heber City transaction ultimately closed.

For Utah small business owners, the lesson is simple.

Low taxable income does not always mean low qualifying income.

A borrower who has only spoken with a traditional bank may not have seen every available mortgage option.

Saxton is a Self-Employed Loan Strategist specializing in Utah jumbo loans, bank statement mortgages and financing for self-employed borrowers with complex income.

More information is available at SteveSaxton.com.

Steve Saxton
Self-Employed Loan Strategist
Christian Roberts Mortgage
NMLS #69154
Company NMLS #3138
[www.SteveSaxton.com](http://www.SteveSaxton.com)
[s.saxton@crmtg.net](mailto:s.saxton@crmtg.net)
(801) 897-4360

Disclaimer: Mortgage programs, underwriting requirements, income calculations, reserve requirements, appraisal requirements and loan-to-value limits vary by lender and borrower profile and are subject to change. All loans are subject to underwriting and approval.

Steve Saxton
Christian Roberts Mortgage
+1 801-897-4360
email us here
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