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in Palos Verdes Estates, CA
Both 1099 loans and bank statement loans serve self-employed buyers in Palos Verdes Estates, but they verify income differently. Your documentation type determines which program fits your business structure.
Most self-employed buyers here are consultants, medical professionals, or business owners. The right loan depends on how clean your 1099s look versus your actual bank deposits.
1099 loans use your tax forms to calculate qualifying income. Lenders average your 1099 earnings over 12-24 months and apply them directly to debt-to-income ratios.
This works well if your 1099s show strong, consistent income without major deductions. You'll need two years of 1099 forms, personal tax returns, and a CPA letter verifying self-employment.
Bank statement loans calculate income from deposits in your business or personal accounts. Lenders review 12-24 months of statements and apply a percentage to determine qualifying income.
This program works when your actual cash flow exceeds what tax returns show. Heavy write-offs hurt your 1099s but bank statements reveal true earning power.
The core split: 1099 loans rely on taxable income while bank statements show gross deposits. If you write off 40% of revenue, your 1099s look weaker than your bank account.
Rates are similar on both programs, typically 1-2% above conventional. Credit requirements match—most lenders want 680+ for either option. Down payment starts at 10-15% regardless of which program you choose.
Choose 1099 loans if your tax returns already show strong income. Consultants and contractors with minimal deductions qualify easily this way.
Go with bank statements if you run expenses through your business. Real estate agents, medical practice owners, and retail operators usually show better through deposits than 1099 forms. We'll calculate both to find which maximizes your buying power.
No, you choose one income verification method per loan. We'll run your numbers both ways upfront to see which qualifies you for more.
Rates are virtually identical—both are Non-QM products. Your credit score and down payment affect pricing more than documentation type.
Yes, both programs require 24 months of history. Lenders want to see consistent income before approving seven-figure loans here.
Lenders average deposits over the full period. Seasonal businesses work fine as long as the 12-24 month average supports your payment.
Yes, if your initial choice doesn't qualify you. We see this often when 1099 income falls short but bank deposits prove stronger.