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in San Anselmo, CA
San Anselmo's self-employed buyers have two solid paths to financing. Both work around W-2 income, but they verify earnings differently.
1099 loans rely on your contractor documentation. Bank statement loans pull directly from your deposits. Your income structure determines which one closes faster.
1099 loans use your contractor forms to verify income. Lenders review your 1099s from the past two years and average your earnings.
This works cleanly if you maintain consistent contractor relationships. Most lenders want to see stable or growing income across those 1099 forms.
Credit requirements typically start at 620, though stronger scores unlock better rates. Rates vary by borrower profile and market conditions.
Bank statement loans analyze 12 to 24 months of business or personal deposits. Lenders calculate income from your average monthly deposits.
This option works when your 1099s don't tell the full story. It captures cash flow that might not show up on tax forms.
You'll need clean bank statements with regular deposits. Lenders apply a percentage to your deposits based on business expenses. Rates vary by borrower profile and market conditions.
The split comes down to how your income hits your accounts. 1099 loans need formal contractor documentation. Bank statements work when deposits come from multiple sources.
Documentation speed differs significantly. Gathering 1099s takes days if you have them organized. Bank statements require downloading 12-24 months of records and explaining any large or irregular deposits.
Rate pricing tilts slightly toward 1099 loans when borrowers have strong credit and consistent contractor work. Bank statement loans cost more because lenders take on additional verification risk.
Choose 1099 loans if you work as a consultant, contractor, or freelancer with steady clients. Your 1099 forms should show consistent or growing income without major gaps.
Pick bank statement loans if you run a business with multiple revenue streams, receive payments through various channels, or write off substantial expenses that reduce your 1099 totals.
Most San Anselmo buyers with mixed contractor and business income benefit from bank statements. Pure 1099 contractors with organized records close faster using 1099 loans.
No. Lenders structure the loan around one income verification method. Choose the approach that shows your strongest qualifying income.
1099 loans typically price 0.25-0.50% lower than bank statement loans. Both cost more than conventional financing. Rates vary by borrower profile and market conditions.
1099 loans require two years of forms. Bank statement loans need 12-24 months of statements depending on income consistency.
Yes. Both programs finance primary residences, second homes, and investment properties. Investment properties typically require larger down payments.
Lenders average the two years but want an explanation for significant drops. Bank statement loans might work better if your deposits stayed stable.