Self-Employed Home Loans in Utah & Idaho

If you own a business, freelance, or get paid on a 1099, you already know the problem. The same tax strategy that saves you money in April can make you look like you earn far less on paper than you really do. That gap is the reason most self-employed borrowers get told “no” or “come back next year” by the first lender they call.

I’m Caleb Adams, a licensed mortgage broker working out of North Logan in Cache Valley, and I help self-employed borrowers across Utah and Idaho (and Texas) find a loan that fits how their income actually works. Because I broker to many wholesale lenders, I’m not stuck with one set of rules. I can look at your tax returns, your bank statements, or a profit and loss statement and match you with the program that reads your income most fairly. I work directly with every client, so you’ll deal with me from the first conversation to closing.

Two paths: full-doc loans and bank statement loans

Self-employed borrowers generally qualify one of two ways.

• Full documentation (conventional, FHA, VA, USDA). These use your personal and business tax returns. Underwriters start from your taxable income, then add back certain non-cash items like depreciation. If your returns show solid income, this is usually the lowest cost route.
• Non-QM programs (bank statement, P&L, 1099). These don’t rely on your tax returns to calculate income. Instead they use deposits into your bank accounts, a professionally prepared profit and loss statement, or your 1099 forms. They’re built for people whose returns understate what they earn.

I walk through the underwriting math in more detail in how underwriters calculate self-employed income, and the non-QM side in non-QM loans explained.

What is a bank statement loan?

A bank statement loan is a mortgage where the lender calculates your income from the deposits in your business or personal bank accounts, usually over the last 12 or 24 months, instead of from your tax returns. For business accounts, the lender typically applies an expense factor to account for the cost of running your business. A 50% expense factor is common, and some lenders will use a lower figure if your CPA or tax preparer supports it in writing.

Here’s a purely hypothetical example of how the math can work. Say your business account shows average deposits of $25,000 a month over 12 months. With a 50% expense factor, the lender would count about $12,500 a month as qualifying income. If your tax return shows only $4,000 a month after write-offs, you can see why the bank statement route might qualify you for a much larger loan. The exact method varies by lender, which is one of the reasons it pays to have a broker compare them. There’s a full walkthrough in how bank statement loans work.

Other self-employed options: P&L and 1099 loans

• P&L loans. Some lenders will qualify you from a year-to-date profit and loss statement prepared and signed by a CPA, enrolled agent, or other licensed tax preparer, usually alongside a couple months of business bank statements. These can work well if you keep clean books.
• 1099 loans. If you’re an independent contractor paid on 1099s, some programs qualify you from your 1099 income with an expense factor applied, rather than your Schedule C.

Who self-employed loans fit

• Business owners and sole proprietors who write off a lot on their taxes
• Realtors, consultants, contractors, and other commission or 1099 earners
• People whose income is strong but uneven from month to month
• Borrowers buying a primary residence, second home, or investment property
• Self-employed borrowers with less than two years in business, in some cases (see self-employed less than 2 years)

Who they may not fit

• If your tax returns already show enough income, a conventional or FHA loan will usually cost less than a non-QM loan. I’ll always check that first.
• If you have very little saved, non-QM programs generally require a larger down payment than conventional loans.
• If your deposits are hard to document, such as large amounts of cash that never hit the bank, a bank statement loan may not help much.
• If your credit needs work, non-QM programs often expect higher credit scores than government loans do.

Requirements to expect

Every lender sets its own guidelines, so treat this as a general picture, not a promise.

• Time in business. Conventional loans generally look for a two-year history of self-employment. Fannie Mae allows less than two years in some cases if your most recent tax return shows a full 12 months of income from the current business and you have prior experience in the same or a related field.
• Tax returns. Full-doc loans usually need two years of personal and business returns. Fannie Mae allows one year in some cases when the business has been around at least five years.
• Bank statements. Bank statement programs typically use 12 or 24 months of statements.
• Down payment. Expect a larger down payment on non-QM loans than on conventional or FHA loans. The exact minimum depends on the lender, your credit, and the property.
• Credit. Non-QM programs usually want stronger credit than government programs.
• Reserves. Many lenders want to see savings left over after closing.

For lenders, “self-employed” generally means you own 25% or more of a business. If you own less than that and get a W-2 from the company, you may be treated as a salaried employee instead.

Your tax write-offs and your mortgage

This is the most common question I get: “Can I get a mortgage if I write off a lot on my taxes?” Usually yes, but the path depends on which write-offs you take. Some deductions, like depreciation, get added back by underwriters on a full-doc loan. Others, like meals, vehicle expenses, or home office costs, generally reduce your qualifying income dollar for dollar. If the write-offs push your taxable income too low, a bank statement or P&L loan is often the fix. I cover which write-offs matter in self-employed tax write-offs and your mortgage.

If you’re planning to buy in the next year or two, talk to me and your tax preparer before you file. A small change in how you report income can make a big difference in what you qualify for. I’m not a tax advisor, so that decision belongs with you and your CPA, but I can show you what each scenario looks like on the lending side.

How the process works with me

1. Intro call. We talk through your business, how you’re paid, what you want to buy, and your timeline.
2. Document review. I look at your returns, and if needed your bank statements or P&L, to see which route gives you the best result.
3. Compare lenders. Because I’m a broker, I shop your scenario across wholesale lenders and compare programs, pricing, and requirements.
4. Pre-approval. You get a pre-approval based on real numbers so you can shop with confidence.
5. Underwriting and closing. Once you’re under contract, I manage the file through underwriting, appraisal, and closing, and keep you and your agent updated.

What it costs

Non-QM loans generally carry higher interest rates than conventional loans because they sit outside the agency guidelines. You’ll also see the normal closing costs: lender fees, appraisal, title, and escrow. Some non-QM loans may include a prepayment penalty, especially on investment properties, so read the terms carefully. I’ll lay out every cost in writing so you can compare options side by side. Many self-employed borrowers use a non-QM loan to buy now, then refinance into a conventional loan later once their tax returns support it. That’s an option, not a guarantee, since it depends on future rates, your income, and your home’s value.

Local notes for Utah, Idaho, and Texas

I’m based in Cache Valley, where plenty of people run their own businesses, work in the trades, or earn commission. My focus is Logan and Southeast Idaho, and I’m licensed in Utah, Idaho, and Texas. Whether you’re buying in Logan, the Wasatch Front, Pocatello, or Idaho Falls, the same programs are available, though property type and location can affect which lenders will take the loan. Rural properties, acreage, and mixed-use homes can narrow the lender list, and that’s where having access to many wholesale lenders helps. Buying in Texas? See my page for self-employed borrowers in Texas.

Frequently asked questions

What is a bank statement loan?

It’s a mortgage that calculates your income from 12 or 24 months of bank deposits instead of your tax returns. Lenders usually apply an expense factor to business account deposits to estimate what you actually earn.

Can I get a mortgage if I write off a lot on my taxes?

Often, yes. Some write-offs like depreciation can be added back on a conventional loan. If your write-offs lower your taxable income too much, a bank statement or P&L loan may qualify you based on your deposits or your profit instead.

How long do I need to be self-employed to get a mortgage?

Two years is the general standard. Some conventional and non-QM programs allow less, often with at least 12 months of self-employment and prior experience in the same field.

Do bank statement loans have higher rates?

Generally, yes. Non-QM loans usually price higher than conventional loans, and the difference depends on your credit, down payment, and the lender. I’ll show you the numbers side by side.

Can I use a self-employed loan to buy an investment property?

Yes. Bank statement and other non-QM programs can be used for primary residences, second homes, and investment properties, depending on the lender.

Can I get a 1099 loan if I’m an independent contractor?

Some lenders offer programs that qualify you from your 1099 income instead of your Schedule C. Whether it beats a full-doc or bank statement loan depends on your numbers.

Let’s look at your numbers

If you’re self-employed and not sure what you qualify for, the fastest way to find out is a short conversation. Book a call with me and bring a rough idea of your income, your recent tax returns, and what you want to buy. I’ll tell you straight which path makes sense.

Caleb Adams, NMLS #2281316. First Class Home Mortgage, NMLS #1843. Terms, programs, and eligibility vary; not all applicants will qualify. This is not a commitment to lend.