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in Coachella, CA
Self-employed borrowers in Coachella have unique mortgage needs. Traditional loans require W-2 income, which doesn't work for independent contractors and business owners.
Both 1099 Loans and Bank Statement Loans offer non-QM solutions for self-employed buyers. Each program uses different documentation to verify your income and qualify you for financing.
Choosing the right option depends on how you receive income and what records you keep. Understanding the differences helps you select the best path to homeownership in Riverside County.
1099 Loans are designed for independent contractors and freelancers who earn 1099 income. This program focuses on your 1099 forms rather than tax returns or W-2s.
If you work as a consultant, gig worker, or contract professional, this loan type matches your income structure. Lenders review your 1099 statements to determine qualifying income.
This option works well when you have consistent 1099 income from one or multiple sources. It provides a straightforward path without requiring extensive bank statements.
Bank Statement Loans use 12 to 24 months of bank statements to verify income for self-employed borrowers. This non-QM option analyzes deposits to calculate your qualifying income.
Business owners who write off significant expenses benefit from this approach. Your income is based on bank deposits, not reduced taxable income from tax returns.
Lenders review your personal or business bank statements to identify consistent income patterns. This method often reveals higher qualifying income than tax returns show.
The main difference lies in documentation requirements. 1099 Loans rely on 1099 forms, while Bank Statement Loans analyze bank deposits over one to two years.
1099 Loans suit contractors with straightforward 1099 income. Bank Statement Loans work better for business owners with mixed income sources and significant tax deductions.
Both programs accommodate self-employed borrowers in Coachella who don't fit traditional lending boxes. Your income structure determines which program offers better qualification terms.
Choose 1099 Loans if you receive most income through 1099 forms and have limited business expenses. This option offers simpler documentation and faster processing.
Bank Statement Loans make sense when you write off substantial business expenses or have varied income sources. They often reveal higher qualifying income for business owners.
A mortgage broker in Riverside County can review your specific situation. They'll analyze your income documentation and recommend the option that maximizes your buying power in Coachella.
Yes, many self-employed borrowers qualify for both programs. A broker will review your documentation and recommend which option provides better terms for your situation.
Rates vary by borrower profile and market conditions. Your credit score, down payment, and documentation strength affect pricing more than the specific program type.
Processing times are similar for both programs. Having organized documentation ready speeds up the process regardless of which loan type you choose.
Requirements vary by lender. Some may request tax returns for additional verification, while others focus solely on 1099s or bank statements.
Yes, both 1099 Loans and Bank Statement Loans are available in Coachella and throughout Riverside County for eligible self-employed borrowers.