Loading
in Perris, CA
Self-employed borrowers in Perris have two strong mortgage options. Both 1099 Loans and Bank Statement Loans help independent workers buy homes without traditional W-2 income.
These non-QM loans serve freelancers, contractors, and business owners across Riverside County. Each program verifies income differently, making one potentially better for your unique situation.
Understanding how each loan works helps you choose wisely. The right option depends on how you receive income and what documentation you can provide.
1099 Loans help independent contractors and freelancers who earn income reported on 1099 forms. This program uses your 1099 statements to verify earnings instead of traditional pay stubs.
You typically need one to two years of 1099 forms from clients. Lenders review these documents to calculate your qualifying income for the mortgage.
This option works well if you receive most income through 1099 contracts. Rates vary by borrower profile and market conditions.
Bank Statement Loans use 12 to 24 months of bank statements to verify income. This non-QM program analyzes deposits in your business or personal accounts.
Lenders review your bank statements to calculate average monthly income. They typically apply expense ratios to account for business costs and determine qualifying income.
This option benefits self-employed borrowers with complex income streams. It works especially well if you have multiple income sources flowing through your accounts.
The main difference is documentation type. 1099 Loans require tax forms from clients, while Bank Statement Loans use account deposits to prove income.
Bank Statement Loans often work better for business owners with expenses. The statements show gross deposits before business costs reduce your income.
1099 Loans suit contractors with straightforward income reporting. Bank Statement Loans help those with multiple revenue streams or complex business structures.
Choose 1099 Loans if you primarily work as a contractor with clear 1099 documentation. This option is simpler if your income comes from a few main clients.
Pick Bank Statement Loans if you own a business with multiple income sources. This works better when deposits better represent your earning power than tax forms alone.
Both programs serve Perris homebuyers effectively. Consider which documentation you can easily provide and which shows your income most favorably.
Yes, many self-employed borrowers qualify for both. Your mortgage broker can help you choose which documentation method produces better qualifying income for your situation.
Rates vary by borrower profile and market conditions. Both are non-QM products with similar rate ranges. Your credit score and down payment affect rates more than loan type.
1099 Loans need 1-2 years of 1099 forms. Bank Statement Loans require 12-24 months of statements. Both also need standard mortgage documents like tax returns.
Yes, both loan types are available throughout Perris and Riverside County. They work for primary residences, second homes, and investment properties.
Processing time is similar for both. The speed depends more on how quickly you provide complete documentation than which loan type you choose.