Steve Saxton publishes guide on self-employed jumbo loans in Utah

Utah mortgage advisor Steve Saxton has released a guide on using business bank statements to qualify self-employed borrowers for jumbo mortgages. The resource outlines income calculations, reserve rules and red flags, and includes a $2.6 million South Jordan case study.

Why it matters: - Self-employed Utah borrowers often have strong cash flow that does not show up clearly on tax returns. - Bank statement underwriting can open the door to jumbo financing for buyers with complex income. - Reserve requirements can be the deciding factor on whether a large loan closes on time.

What happened: - Utah mortgage advisor Steve Saxton released a new educational guide for self-employed homebuyers seeking jumbo mortgages with business bank statements instead of traditional tax-return income documentation. - The guide is titled “Self-Employed Jumbo Loans in Utah: Bank Statement Mistakes, Red Flags and a Real $2.6 Million Case Study.” - The full guide is available at SteveSaxton.com.

The details: - The guide explains how bank statement mortgage programs evaluate business cash flow, ownership percentage, qualified deposits, expense ratios, down payment requirements and post-closing reserves. - Bank statement programs let lenders analyze deposits in business or personal accounts instead of relying only on tax returns. - A 100% owner of a low-overhead service company may potentially use 100% of qualified business deposits before an expense factor is applied. - In some service businesses with minimal employees, the expense factor can be as low as about 15%. - Businesses that buy and resell goods or carry higher payroll and overhead may require an expense factor of about 50%. - Qualified deposits generally include revenue from customers, clients, merchant processors or ordinary business operations. - Transfers between accounts, loan proceeds, refunds and other non-revenue deposits generally do not count as new business income. - Depending on loan amount, down payment and mortgage program, borrowers may need six, nine or 12 months of principal, interest, taxes and insurance after closing. - Eligible reserve assets may include checking, savings, brokerage, investment, money market and qualifying retirement accounts. - Saxton said large jumbo loans can require an additional $100,000 to $150,000 to remain available after closing.

Between the lines: - The guide targets a common mismatch: profitable businesses with taxable income that looks too low under standard mortgage underwriting. - Saxton said many strong borrowers are turned down because the income documentation does not reflect how they actually earn money. - Bank statement loans are often viewed as a fallback option, but many borrowers using them have strong credit, sizable assets and large down payments. - Saxton said the loan type is another way to document income for borrowers whose finances do not fit W-2 and tax-return underwriting. - The guide also aims to reduce avoidable surprises, especially around reserve requirements and declining deposits.

What's next: - The guide says borrowers should identify reserve needs before making an offer on a home. - Saxton’s case study shows that borrowers may need time to reposition eligible assets before closing. - The home in the example is under contract, with closing anticipated in September 2026.

The bottom line: - Bank statement loans can help self-employed borrowers qualify for jumbo mortgages, but the details of deposits, expense factors and reserves can make or break the deal.