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in Moreno Valley, CA
Self-employed borrowers in Moreno Valley have unique financing needs. Traditional mortgage programs often don't work for independent contractors and business owners.
Both 1099 loans and bank statement loans offer alternatives to W-2 income verification. These non-QM options help self-employed buyers qualify based on actual earnings.
Choosing the right loan depends on how you receive income and your documentation. Understanding the differences can save you time and help you get approved faster.
1099 loans are designed for independent contractors and freelancers who earn 1099 income. This program uses your 1099 forms to verify earnings instead of traditional pay stubs.
If you receive most income through 1099 forms, this option streamlines the approval process. Lenders review your 1099 documentation to calculate qualifying income.
Rates vary by borrower profile and market conditions. Your credit score, down payment, and income stability all influence your final rate.
Bank statement loans use 12 to 24 months of bank statements to verify income for self-employed borrowers. This approach works well if you run your income through business accounts.
Lenders analyze deposits to calculate your average monthly earnings. This method captures income that might not show up clearly on tax returns.
Rates vary by borrower profile and market conditions. The length of bank statements and consistency of deposits affect your approval odds.
The main difference lies in documentation requirements. 1099 loans rely on tax forms while bank statement loans analyze deposit activity.
1099 loans work best for contractors with clear 1099 income trails. Bank statement loans suit business owners who deposit varied income sources into accounts.
Both programs offer flexible underwriting compared to traditional mortgages. Your income structure determines which program fits your situation better.
Choose 1099 loans if you receive most income as an independent contractor or freelancer. This works best when your 1099 forms clearly show stable earnings.
Pick bank statement loans if you own a business with multiple income streams. This option helps if tax deductions reduce your reported income significantly.
Both programs serve self-employed Moreno Valley buyers who don't fit traditional lending boxes. A mortgage broker can review your documentation and recommend the best fit.
Some lenders allow combining documentation types. A broker can help determine if using both strengthens your application or if one program works better.
Rates vary by borrower profile and market conditions. Your credit score and down payment matter more than the specific program when determining rates.
Both programs typically take 30-45 days to close. Having organized documentation ready speeds up the process considerably.
Most lenders require at least two years of self-employment history. Some programs accept one year with strong income and credit profiles.
Both programs typically require 10-20% down. Your specific down payment depends on credit score, income stability, and property type.