Loading
in Corona, CA
Self-employed borrowers in Corona, Riverside County have two main non-QM loan options. Both 1099 Loans and Bank Statement Loans help independent workers buy homes without traditional W-2 income verification.
These alternative mortgage products serve the growing self-employed community. Each loan type uses different methods to prove your income and qualify you for financing.
Choosing the right option depends on how you receive income and what documentation you have. Understanding the differences helps you pick the best path to homeownership in Corona.
1099 Loans help independent contractors and freelancers who earn income reported on 1099 forms. This option works well if you receive multiple 1099s from various clients throughout the year.
Lenders verify your income using your 1099 forms instead of traditional pay stubs. You'll typically need to provide one to two years of 1099 documentation to qualify.
This loan type is ideal for consultants, gig workers, and contractors with clear 1099 income trails. The process is straightforward if you keep organized tax records.
Bank Statement Loans use 12 to 24 months of personal or business bank statements to verify income. This non-QM option helps self-employed borrowers who may have complex tax situations.
Lenders analyze your deposits to calculate average monthly income. This method works even if you write off many business expenses that reduce taxable income.
Business owners, sole proprietors, and entrepreneurs often prefer this option. It provides flexibility when your 1099s don't tell the complete income story.
The main difference is documentation type: 1099 Loans require tax forms while Bank Statement Loans need banking records. Your income structure determines which documentation method works better for you.
1099 Loans suit contractors with straightforward freelance income from multiple sources. Bank Statement Loans benefit business owners who reinvest profits or have significant tax deductions.
Qualification criteria differ between these loan types. Bank Statement Loans often provide more flexibility for borrowers with complicated financial situations or lower taxable income.
Choose 1099 Loans if you receive most income via 1099 forms and don't heavily reduce taxable income. This option works best when your tax returns accurately reflect your earning power.
Bank Statement Loans make sense if you're a business owner with significant deductions. They're also better if your bank deposits show higher income than your tax returns reflect.
Consider your documentation availability and how you structure your business finances. A Corona mortgage broker can review your specific situation and recommend the best fit. Rates vary by borrower profile and market conditions.
Yes, many self-employed borrowers qualify for both options. Your mortgage broker will recommend the one that offers better terms based on your documentation and income situation.
Rates vary by borrower profile and market conditions for both loan types. Your credit score, down payment, and financial strength matter more than the specific loan program you choose.
Both typically take similar timeframes for approval. The key is having your documentation organized, whether that's 1099 forms or bank statements from the past 12-24 months.
Down payment requirements are similar for both programs and typically higher than conventional loans. Expect to put down at least 10-20% depending on your complete financial profile.
Yes, both 1099 Loans and Bank Statement Loans are available throughout Corona and all of Riverside County. Local mortgage brokers specialize in these non-QM options for self-employed borrowers.