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in Blythe, CA
Self-employed borrowers in Blythe, Riverside County have two strong mortgage options. Both 1099 Loans and Bank Statement Loans help those without traditional W-2 income qualify for home financing.
These non-QM loans were designed for independent contractors, freelancers, and business owners. Each approach verifies income differently, giving you flexibility based on your financial situation.
Understanding how these programs work helps you choose the right path. Your income documentation and tax strategy often determine which loan fits best.
1099 Loans use your 1099 forms to verify income for mortgage qualification. This option works well for independent contractors and freelancers who receive 1099 documentation from clients.
Lenders review your 1099 income statements rather than requiring W-2s. This approach is straightforward if you have consistent 1099 income and minimal business expenses.
The verification process focuses on the gross income shown on your 1099 forms. This can be advantageous if you don't write off many business expenses on your tax returns.
Bank Statement Loans use 12 to 24 months of personal or business bank statements to verify income. This non-QM option works for self-employed borrowers who may not have traditional documentation.
Lenders analyze deposits in your bank accounts to calculate qualifying income. This method captures the full picture of your cash flow and earnings.
This approach benefits business owners who write off significant expenses. Your bank deposits often show higher income than what appears on tax returns after deductions.
The main difference is documentation: 1099 Loans require 1099 forms while Bank Statement Loans need bank statements. Your income structure determines which documentation you can provide more easily.
1099 Loans work best when you receive most income via 1099 forms with few expenses. Bank Statement Loans shine when you have diverse income sources or write off substantial business expenses.
Both programs serve self-employed Blythe residents but verify income differently. Rates vary by borrower profile and market conditions for both loan types.
Choose 1099 Loans if you're an independent contractor with consistent 1099 income and few business deductions. This path offers straightforward documentation and faster processing.
Bank Statement Loans suit business owners who maximize tax deductions or have multiple income streams. If your tax returns show low income due to write-offs, bank statements reveal true earnings.
A mortgage broker in Blythe can review your specific situation and recommend the best fit. Consider your documentation availability, income consistency, and tax strategy when deciding.
Yes, many self-employed borrowers qualify for both options. Your broker will recommend which provides better terms based on your income documentation and financial profile.
Rates vary by borrower profile and market conditions for both programs. Your credit score, down payment, and documentation strength affect your specific rate more than loan type.
1099 Loans typically require one to two years of 1099 forms. Bank Statement Loans need 12 to 24 months of consecutive bank statements from personal or business accounts.
Yes, both loan types can be used for primary residences, second homes, and investment properties. Program availability depends on the specific lender and your qualifications.
Most non-QM programs require minimum credit scores between 600 and 660. Higher scores typically qualify for better rates and terms with either loan option.