Loading
in Roseville, CA
Both options help self-employed buyers in Roseville qualify without W-2s. The right choice depends on how clean your 1099s look versus your bank deposits.
Most contractors prefer one over the other based on their write-off strategy. We run both scenarios to find which gives you the stronger approval.
1099 loans use your tax returns to calculate income, just like traditional mortgages. Lenders typically average two years of 1099 income after deducting business expenses.
This works well if you take minimal write-offs and show strong net income. If you write off everything for tax savings, your qualifying income drops to match.
Rates often beat bank statement loans by 0.25% to 0.75% because lenders view tax returns as more reliable documentation. You need 12-24 months of consistent 1099 history.
Bank statement loans skip tax returns entirely. Lenders review 12 or 24 months of personal or business bank deposits to verify income.
This option shines when you maximize tax deductions but maintain strong cash flow. Lenders use 50% to 75% of your average monthly deposits as qualifying income.
Rates run higher than 1099 loans but give you buying power your tax returns can't show. Most lenders require 10% to 20% down for Placer County properties.
The core difference is what documentation drives your income calculation. 1099 loans use net income after expenses. Bank statement loans use gross deposits before most expenses.
Rate spreads matter in Roseville where every 0.5% affects your monthly payment significantly. Expect 1099 loans around 7% to 8% versus bank statement loans at 7.5% to 9%.
Down payment requirements differ too. 1099 loans often accept 10% down while bank statement loans may require 15% to 20% depending on the property type and loan amount.
Processing time favors 1099 loans since tax returns are standardized documents. Bank statement reviews take longer as underwriters analyze every deposit pattern and source.
Run both calculations before deciding. If your tax returns show $10,000 monthly net but your bank deposits average $18,000, the bank statement loan likely wins despite higher rates.
Most Roseville contractors with established businesses prefer 1099 loans for rate savings. Newer self-employed buyers or those with aggressive CPAs usually need bank statement programs.
We see the break-even point around 15% to 20% income difference. If bank statements show that much more qualifying income, the rate premium pays for itself in buying power.
No, lenders choose one income documentation method per loan. We select whichever gives you stronger qualification and better terms.
1099 loans typically beat bank statement rates by 0.5% to 1%. Rates vary by borrower profile and market conditions.
Most lenders use 50% to 75% of average monthly deposits. The percentage depends on business type and deposit consistency.
Most programs want 12 to 24 months. Some bank statement lenders accept 12 months if deposits show strong patterns.
Bank statement loans often allow more properties in your portfolio. 1099 programs may cap you at four financed properties.