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in Stanton, CA
Self-employed borrowers in Stanton have multiple paths to homeownership. Both 1099 loans and bank statement loans offer alternatives to traditional mortgage qualifying.
These non-QM options help independent contractors and business owners qualify without W-2s. Each approach uses different documentation to verify your income and ability to repay.
1099 loans serve independent contractors and freelancers who receive 1099 income. This option verifies income through your 1099 forms rather than tax returns.
These loans work well if your 1099s accurately reflect your earning capacity. Lenders review your forms to establish qualifying income for your Stanton home purchase.
Bank statement loans use 12 to 24 months of personal or business bank statements. This method calculates income from deposits rather than tax documents.
Self-employed borrowers benefit when tax deductions lower their reported income. Bank statements often show higher cash flow than tax returns reveal.
Lenders analyze your deposits to determine consistent income patterns. This approach works for various self-employed professionals in Stanton.
The main difference lies in documentation requirements. 1099 loans rely on your 1099 forms while bank statement loans analyze deposit history.
Bank statement loans typically work better for borrowers with significant tax deductions. 1099 loans suit contractors whose forms reflect actual earning power.
Processing time and qualification standards differ between options. Your income structure determines which program offers better terms for your situation.
Choose 1099 loans if you receive substantial 1099 income with minimal deductions. This works when your forms accurately represent your earnings.
Bank statement loans fit better if you write off significant expenses. They reveal cash flow that tax returns might not show clearly.
Consider consulting a Stanton mortgage broker to review your specific situation. They can compare both options based on your actual income documentation and goals.
Yes, many self-employed borrowers qualify for both. A mortgage broker can run scenarios to determine which offers better rates and terms for your situation.
Rates vary by borrower profile and market conditions. Neither loan type consistently offers lower rates. Your credit, down payment, and income stability affect pricing.
Both typically take 30-45 days to close. Processing time depends on how quickly you provide documentation and lender workload during application.
Most lenders prefer two years of self-employment history for both loan types. Some programs accept one year with strong compensating factors.
Generally, you choose one documentation method per loan application. However, lenders may review both to assess overall financial strength and stability.