Loading
in Shafter, CA
Self-employed borrowers in Shafter have more mortgage options than ever before. Both 1099 loans and bank statement loans help independent contractors and business owners qualify without traditional pay stubs.
These non-QM programs recognize that Shafter's entrepreneurs and freelancers earn income differently than W-2 employees. Understanding which documentation method works best for your situation can streamline your path to homeownership in Kern County.
1099 loans use your Form 1099 documents to verify income, making them ideal for contractors who receive consistent 1099 income from clients. Lenders typically review one to two years of 1099 forms to establish your qualifying income.
This option works well if you maintain detailed records and receive most of your income through 1099 reporting. The process mirrors traditional verification but uses 1099s instead of W-2s, which many Shafter contractors find straightforward.
Rates vary by borrower profile and market conditions. Your credit score, down payment, and income stability all influence the terms you receive on a 1099 loan program.
Bank statement loans analyze 12 to 24 months of personal or business bank statements to calculate your income. Lenders examine deposits to determine average monthly earnings, which benefits borrowers with fluctuating income streams.
This approach helps Shafter business owners who write off significant expenses or receive income from multiple sources. Your bank statements tell the full story of your cash flow without relying on tax returns that may show reduced income.
The flexibility comes with trade-offs. Rates vary by borrower profile and market conditions, and you'll need to maintain organized banking records throughout the review period.
The main distinction lies in documentation. 1099 loans require specific tax forms from clients, while bank statement loans need comprehensive banking records. Your income structure determines which documentation you can provide more easily.
Bank statement loans often qualify borrowers at higher amounts because they count gross deposits rather than income after business deductions. However, 1099 loans may offer more competitive terms if your reported 1099 income is strong and consistent.
Processing timelines differ too. 1099 loans typically move faster when you have organized tax documents ready. Bank statement reviews take longer because underwriters manually analyze months of transactions.
Choose 1099 loans if you receive most income through contractor relationships and keep thorough records. This works especially well for Shafter professionals with stable client bases who file their 1099s accurately each year.
Bank statement loans make more sense when your income arrives from varied sources or when business expenses significantly reduce your taxable income. This option helps business owners in Shafter whose tax returns don't reflect their true earning power.
Consider both your current documentation and your business structure. Some borrowers qualify under either program, allowing you to compare specific rate quotes and choose the option with better terms for your profile.
Some lenders blend documentation, but most programs use one method or the other. Choosing the approach that best represents your income typically produces the strongest application.
Both options often require 10-20% down, though specific requirements depend on your credit score and the property. Strong borrower profiles may access lower down payment programs.
Most 1099 programs need one to two years of forms. Bank statement loans typically require 12 or 24 consecutive months of statements from the same account.
Rates vary by borrower profile and market conditions. Neither program consistently offers lower rates—your individual qualifications determine pricing more than the documentation method.
Yes, if you demonstrate consistent income over the required period. Both programs focus on income stability rather than employment type, making them accessible to part-time contractors.