Loading
in Calimesa, CA
Self-employed borrowers in Calimesa have two strong mortgage options. Both 1099 Loans and Bank Statement Loans help people without W-2 income qualify for home financing.
These non-QM loans use alternative income verification methods. They give freelancers and business owners a path to homeownership in Riverside County.
Choosing between them depends on your income structure and documentation. Understanding each option helps you make the right choice for your situation.
1099 Loans help independent contractors and freelancers who receive 1099 forms. This mortgage option uses your 1099 income documents to verify earnings.
You'll provide your 1099 forms from clients instead of pay stubs. Lenders review these documents to calculate your qualifying income for the loan.
This option works well if you have consistent 1099 income from multiple clients. Rates vary by borrower profile and market conditions.
Bank Statement Loans use 12 to 24 months of bank statements to verify income. This non-QM option reviews deposits to calculate your earnings for self-employed borrowers.
Lenders analyze your business and personal bank accounts. They look at consistent deposits to determine your monthly income.
This works especially well for business owners who mix business expenses with income. Rates vary by borrower profile and market conditions.
The main difference lies in documentation requirements. 1099 Loans need your 1099 forms while Bank Statement Loans require monthly statements.
1099 Loans suit contractors receiving formal 1099 documents from clients. Bank Statement Loans work better if you have varied income sources flowing through accounts.
Income calculation methods also differ between the two. Bank Statement Loans can account for business expenses that reduce your taxable income.
Choose 1099 Loans if you receive clear 1099 documentation from clients. This option is straightforward when your income is already documented on forms.
Pick Bank Statement Loans if you write off many business expenses. They work better when your tax returns show lower income than actual cash flow.
Consider your documentation availability and income structure. A Calimesa mortgage broker can review your specific situation and recommend the best fit.
Yes, many self-employed borrowers qualify for both options. A mortgage broker can help you choose which documentation method shows your income best.
Rates vary by borrower profile and market conditions for both loans. Your credit score, down payment, and documentation strength affect your specific rate more than loan type.
Bank Statement Loans typically require 12-24 months of statements. 1099 Loans usually need one to two years of 1099 forms from your clients.
No, both options accept lower credit scores than traditional mortgages. Specific requirements vary by lender and your overall financial profile.
Some lenders offer flexibility in documentation. Discuss your available documents with a Riverside County mortgage broker to find the best approach.