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in Huntington Beach, CA
Self-employed borrowers in Huntington Beach have strong financing options. Both 1099 loans and bank statement loans help you qualify without traditional pay stubs.
These non-QM programs use alternative documentation to verify your income. The right choice depends on how you receive payment and what records you keep.
Rates vary by borrower profile and market conditions. Understanding the differences helps you choose the best path to homeownership in Orange County.
1099 loans are designed for independent contractors and freelancers who earn non-W-2 income. This program uses your 1099 forms to document your earnings.
If you work as a contractor or consultant, this option makes sense. Your 1099 tax documents serve as proof of income instead of traditional employment verification.
This loan type works well when you have clear 1099 documentation. It streamlines the process for borrowers with straightforward contractor income.
Bank statement loans use 12 to 24 months of bank deposits to calculate your income. This non-QM option works for self-employed borrowers with various income sources.
Lenders review your business or personal bank statements to determine qualifying income. This method captures income that might not show up on 1099 forms.
This program benefits business owners with multiple revenue streams. It provides flexibility when your income structure is more complex than simple contractor payments.
The main difference lies in how income is documented. 1099 loans rely on tax forms while bank statement loans analyze deposit patterns.
Bank statement loans often work better for business owners with expenses run through accounts. 1099 loans suit contractors with cleaner income documentation.
Documentation requirements vary significantly between these programs. Your income structure and recordkeeping habits determine which is easier to qualify for.
Choose 1099 loans if you primarily earn contractor income with clear tax documentation. This route is simpler when your income comes from straightforward 1099 sources.
Bank statement loans make more sense for business owners with varied income streams. They work well if you have deductions or multiple revenue sources.
Both programs serve Huntington Beach self-employed buyers effectively. A qualified mortgage broker can review your specific situation and recommend the better fit.
Some lenders allow hybrid documentation approaches. Your broker can determine if combining documentation methods strengthens your application for Huntington Beach properties.
Rates vary by borrower profile and market conditions. Both programs typically have similar rate ranges since they're both non-QM loans.
1099 loans typically need one to two years of tax returns. Bank statement loans require 12 to 24 months of consecutive statements.
Yes, both loan types can finance investment properties. Qualification requirements may differ slightly from primary residence purchases.
1099 loans often close faster due to simpler documentation. Bank statement loans require more detailed income analysis, which can extend timelines slightly.