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in Rolling Hills, CA
Rolling Hills properties typically demand jumbo financing, and self-employed buyers here need non-QM options that work with complex income. Both 1099 and bank statement loans solve the W-2 problem, but they verify income differently.
Your cleanest income documentation path determines which loan closes faster. Some self-employed borrowers qualify for both programs but save thousands by choosing the right one upfront.
1099 loans use your actual 1099 forms to prove income, typically requiring 12-24 months of history. Underwriters calculate your qualifying income directly from those forms without tax returns.
This works best when your 1099 income is consistent and substantial. No need to explain business deductions or reconcile bank deposits—the 1099s tell the whole story.
Lenders want to see stable 1099 relationships, not sporadic gig work. If you're a high-earning consultant or contractor with regular clients, this path is straightforward.
Bank statement loans analyze 12-24 months of business or personal bank deposits to calculate income. Underwriters apply a percentage factor to your average monthly deposits, typically 50-75% depending on business type.
This program handles messy income scenarios—multiple revenue streams, seasonal businesses, or situations where tax returns don't reflect true cash flow. You prove what actually hits your account.
Expect lenders to scrutinize every large deposit. Transfers between your own accounts don't count as income, so you'll document the source of major transactions.
The 1099 route is cleaner if your income is already documented in those forms. Bank statements work when your tax returns show write-offs that tank your qualifying income but your deposits prove strong cash flow.
Rates vary by borrower profile and market conditions, but bank statement loans often price slightly higher due to added underwriting complexity. The deposit analysis takes longer than reviewing 1099 forms.
Down payment requirements run similar—expect 10-20% minimum on both programs. Credit score minimums hover around 620-640, though Rolling Hills loan amounts typically demand higher scores for approval.
Choose 1099 loans if your forms show enough income to qualify and you want the simplest process. Choose bank statements if tax deductions crushed your reported income but deposits prove you earn plenty.
Many Rolling Hills self-employed buyers have both options available. Run the numbers on both—sometimes the income calculation difference makes one program work where the other falls short.
A broker compares your actual docs across both programs before you apply. This isn't a guess—we calculate qualifying income both ways and show you which gets approved.
No, lenders choose one income calculation method per file. Mixing them creates conflicts and delays underwriting.
1099 loans typically close quicker because bank statement analysis takes longer. Expect 30-45 days for 1099s versus 45-60 for bank statements.
Yes, both handle Rolling Hills pricing. Lenders go to $3-4 million on these programs with strong profiles.
Switch to bank statements if deposits show higher cash flow. The bank statement percentage calculation often qualifies more income.
Usually by 0.25-0.75%, but rates vary by borrower profile and market conditions. Strong credit can narrow the gap.