Loading
in Downey, CA
Most self-employed borrowers in Downey qualify for either 1099 loans or bank statement loans. Both skip W-2s, but they verify income differently.
The right choice depends on how you get paid and what deposits hit your accounts. One uses tax forms, the other uses actual cash flow.
1099 loans use your 1099 forms to calculate income. Lenders average 12-24 months of 1099 income to determine what you qualify for.
This works best if you're a contractor with consistent 1099 income and minimal business write-offs. Your tax returns show income close to what you actually earn.
Credit requirements typically start at 620. Rates vary by borrower profile and market conditions but expect pricing similar to other non-QM programs.
Bank statement loans calculate income from 12-24 months of business or personal bank statements. Lenders analyze deposits to determine qualifying income.
This program fits borrowers who write off significant expenses. You might show $60k on your tax return but have $120k hitting your accounts.
Most programs require 10-20% down. Personal statements are simpler to review, but business statements can show higher income if structured properly.
The main split is documentation method. 1099 loans need your actual 1099 forms from clients. Bank statement loans need monthly statements showing deposits.
Income calculation differs completely. 1099 programs use what's reported to the IRS. Bank statement programs use a percentage of deposits, usually 50-75% for personal accounts.
1099 loans work better for simple contractor setups. Bank statement loans handle complex business structures where deposits tell a different story than tax returns.
Choose 1099 loans if you get regular 1099s and don't write off much. Your tax return income is close to what you actually make.
Pick bank statement loans if you write off expenses heavily. A Downey contractor showing $50k taxable income but depositing $100k needs bank statements.
Some borrowers qualify for both. We run scenarios with each program to find better pricing and terms for your specific income pattern.
No, lenders use one income verification method per loan. We pick whichever shows higher qualifying income and better terms for your situation.
Rates vary by borrower profile and market conditions. Pricing is usually similar, but your specific credit and down payment affect final rates more than program type.
Most bank statement programs don't require CPA letters. Some 1099 lenders ask for one to verify business continuity and income consistency.
Both programs typically use 12-24 months. Longer history shows income stability and can improve approval odds with most lenders.
We can combine income sources. W-2 income uses standard verification while 1099 or bank statements document the self-employed portion.