Loading
in Antioch, CA
Self-employed borrowers in Antioch have two strong mortgage options when traditional W-2 income documentation won't work. Both 1099 loans and bank statement loans let you qualify using alternative income verification methods.
Understanding the differences between these non-QM loan programs helps you choose the right path for your Antioch home purchase or refinance. Each approach has distinct requirements and advantages depending on how you structure your business income.
1099 loans verify your income using 1099 forms you receive as an independent contractor or freelancer. Lenders typically review one or two years of your 1099 income statements to calculate your qualifying income.
This option works well when your 1099 income is consistent and clearly documented. The straightforward nature of 1099 forms makes income calculation relatively simple compared to analyzing detailed bank statements.
Many Antioch contractors, consultants, and gig workers prefer this route when they have steady 1099 income from one or more clients. The process focuses on the gross income reported on your 1099 forms.
Bank statement loans analyze 12 to 24 months of your business or personal bank deposits to determine qualifying income. Lenders calculate an average monthly income from your deposits, often applying expense ratios based on your business type.
This program gives flexibility when your income streams vary or when you have significant business expenses that reduce your taxable income. The bank statement approach captures your actual cash flow rather than tax return income.
Antioch business owners who write off substantial expenses find bank statement loans attractive. You can qualify based on deposits rather than the lower net income shown on tax returns.
The main difference lies in documentation requirements. 1099 loans need your 1099 forms and possibly tax returns, while bank statement loans require complete monthly bank statements showing all deposits and withdrawals.
Income calculation methods differ significantly. Lenders use your 1099 gross income directly, while bank statement income gets calculated from deposits with expense ratios applied—typically 25% to 50% depending on your business.
Bank statement loans offer more flexibility for borrowers with complex income streams or heavy tax deductions. 1099 loans provide a cleaner path when your contractor income is straightforward and well-documented on standard forms.
Choose 1099 loans when you receive most income via 1099 forms and your income stays relatively consistent year over year. This program works best for contractors and freelancers who don't write off substantial business expenses.
Bank statement loans make sense when you own a business with significant expenses, receive income from multiple sources, or have fluctuating deposits. This option helps Antioch self-employed borrowers who maximize tax deductions.
Both programs require strong credit and adequate down payment for Antioch properties. Rates vary by borrower profile and market conditions. Consider your specific income structure and which documentation tells your financial story most accurately.
You typically choose one income verification method per loan application. Your lender will recommend which approach provides the strongest qualifying income based on your specific situation.
Rates vary by borrower profile and market conditions. Both are non-QM loans with similar rate structures. Your credit score, down payment, and overall financial profile matter more than the specific income documentation method.
Most lenders use the full gross income from your 1099 forms averaged over one or two years. Some programs may reduce this by a small percentage for self-employment taxes.
Lenders typically count 50% to 75% of your bank deposits as qualifying income, depending on your business type. This accounts for operating expenses without requiring detailed expense documentation.
Requirements vary by lender. Some 1099 loan programs work without tax returns, while others require them. Bank statement loans often don't require tax returns, making them popular with borrowers who show lower taxable income.