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in Buena Park, CA
Self-employed borrowers in Buena Park have two strong mortgage options. Both 1099 Loans and Bank Statement Loans help independent workers qualify without traditional W-2 income.
These non-QM loan programs offer flexible income verification. Rates vary by borrower profile and market conditions. Choosing the right option depends on how you receive income and what documentation you have available.
1099 Loans are built for independent contractors and freelancers. These borrowers receive 1099 forms instead of W-2 wages from their clients or employers.
This program uses your 1099 income documents to verify earnings. Lenders review one or two years of 1099 forms to determine your qualifying income. It works well when you have clear 1099 documentation from multiple clients or one main source.
Bank Statement Loans use 12 to 24 months of bank statements to verify income. This program is ideal for self-employed borrowers who may not have traditional income documents.
Lenders analyze deposits in your personal or business accounts. They calculate your average monthly income based on these statements. This option works for business owners, contractors, and freelancers with varied income sources.
The main difference is documentation type. 1099 Loans require official 1099 forms from clients. Bank Statement Loans only need your bank statements showing deposit history.
Bank Statement Loans offer more flexibility for complex income situations. They work when you have multiple income streams or business expenses. 1099 Loans are simpler when you have straightforward contractor income with clear documentation.
Both are non-QM products with flexible underwriting. Neither follows standard Qualified Mortgage rules. This flexibility helps self-employed borrowers in Buena Park who cannot qualify through traditional channels.
Choose 1099 Loans if you receive clear 1099 forms from clients. This works best for contractors with one or two main income sources. The application process is straightforward when your forms are organized.
Select Bank Statement Loans if your income varies significantly or comes from many sources. This option suits business owners who reinvest profits or have complex financial situations. It also helps if you write off many expenses that reduce your taxable income.
Talk with a Buena Park mortgage broker to review your specific situation. They can analyze your documentation and recommend the best fit. Both programs can lead to successful homeownership for self-employed borrowers.
Some lenders may consider hybrid approaches. However, most programs use one primary income verification method. A mortgage broker can help determine the strongest documentation strategy for your situation.
Rates vary by borrower profile and market conditions. Neither program consistently offers lower rates. Your credit score, down payment, and overall financial profile impact your rate more than the loan type.
1099 Loans require one to two years of 1099 forms and tax returns. Bank Statement Loans need 12 to 24 months of personal or business bank statements. Both require standard mortgage documents like credit reports.
Yes, both programs work for home purchases and refinances. Self-employed borrowers can use either option to buy a home or refinance an existing mortgage in Buena Park and throughout Orange County.
Minimum credit scores vary by lender but typically range from 600 to 660. Higher credit scores may qualify for better terms. Your specific score requirements depend on other factors like down payment and income stability.