Loading
in Palm Desert, CA
Self-employed borrowers in Palm Desert have two strong mortgage options. Both 1099 loans and bank statement loans serve independent workers who lack W-2 income.
These non-QM programs help freelancers and business owners qualify. Each approach verifies income differently, matching various business structures. Understanding both helps you choose the right path.
1099 loans use your 1099 forms to verify income. This works well for independent contractors and freelancers who receive these tax documents. Lenders review one to two years of 1099 records.
This option suits borrowers with straightforward contractor income. Your income must be documented through 1099 forms from clients. Rates vary by borrower profile and market conditions.
Bank statement loans analyze 12 to 24 months of business or personal bank deposits. This method works for self-employed borrowers who may not receive traditional 1099s. Lenders calculate income from your average monthly deposits.
This program helps business owners with varied income sources. It captures revenue that might not show on 1099 forms. Rates vary by borrower profile and market conditions.
The main difference is documentation type. 1099 loans need specific tax forms from clients. Bank statement loans require consistent bank records showing deposits.
Income calculation methods also differ significantly. 1099 loans total your reported contractor earnings. Bank statement loans average your deposits and may apply expense ratios. Choose based on how your business documents income.
Choose 1099 loans if you receive clear contractor payments. This works best when clients regularly issue 1099 forms. Your income documentation is already organized for taxes.
Pick bank statement loans if your income is more complex. Business owners with multiple revenue streams benefit most. This option also helps if you lack sufficient 1099 documentation. Both programs serve Palm Desert borrowers well.
Yes, many self-employed borrowers qualify for both. Your best choice depends on which documentation shows your income most favorably. A mortgage broker can compare both options.
Neither is universally easier. 1099 loans work better with clear contractor income. Bank statement loans help when income varies or comes from multiple sources.
Non-QM loans typically have slightly higher rates than conventional loans. Rates vary by borrower profile and market conditions. Strong credit and down payments help secure better terms.
1099 loans need 1-2 years of 1099 forms. Bank statement loans require 12-24 months of statements. Both need standard mortgage documents like credit reports and asset verification.
Yes, both loan types are available for Palm Desert homes. Non-QM lenders serve Riverside County borrowers. These programs work for primary residences, second homes, and investment properties.