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in Indio, CA
Self-employed borrowers in Indio have options beyond traditional mortgages. Both 1099 loans and bank statement loans help independent workers qualify without W-2 income.
These non-QM loan programs serve Riverside County's growing self-employed community. Each uses different methods to verify your income and assess your ability to repay.
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.
1099 loans are designed for independent contractors and freelancers who receive 1099 forms. This program uses your 1099 income documents to prove your earnings capacity.
If you get paid as a contractor rather than an employee, this loan fits your situation. Lenders review your 1099 forms from clients to calculate your qualifying income.
This option works well when you have consistent 1099 income documentation. It's straightforward if your business income comes through contractor relationships rather than direct customer payments.
Bank statement loans use 12 to 24 months of business or personal bank statements to verify income. This non-QM option analyzes deposits to determine your earnings.
Self-employed borrowers who don't receive traditional income documents benefit from this flexibility. Lenders review your bank activity to see consistent cash flow patterns.
This program suits business owners with varied income sources or those who write off significant expenses. It looks at actual money flowing through your accounts rather than tax returns.
The main difference lies in documentation requirements. 1099 loans need your contractor income forms while bank statement loans examine your actual account deposits.
1099 loans work best for freelancers with clear contractor relationships. Bank statement loans serve broader self-employment situations including business owners who take deductions.
Income calculation methods also differ between programs. Bank statement loans may capture revenue that doesn't appear on 1099 forms, giving some borrowers higher qualifying amounts.
Choose 1099 loans if you're an independent contractor with consistent 1099 documentation from clients. This path is simpler when your income structure matches traditional contractor work.
Bank statement loans suit you better if you own a business with varied income sources. They're also ideal when you take substantial business deductions that reduce your taxable income.
Consider your documentation availability and income structure. A mortgage broker in Indio can review your specific situation and recommend the best non-QM option for your needs.
Yes, some borrowers qualify for both programs. A mortgage broker can compare which option gives you better terms or a higher loan amount based on your documentation.
Non-QM loans typically have higher rates than conventional options. Rates vary by borrower profile and market conditions, so comparing offers is important.
Both programs typically take similar timeframes to conventional loans. The key is having your documentation organized, whether that's 1099 forms or bank statements.
Neither is universally easier. It depends on your income structure and available documentation. Bank statement loans may help if you have significant write-offs.
Many non-QM programs allow investment property purchases. Check with your lender as guidelines vary between 1099 and bank statement loan programs.