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in Riverside, CA
Self-employed borrowers in Riverside have strong mortgage options beyond traditional loans. Both 1099 Loans and Bank Statement Loans help independent contractors qualify without W-2 income.
These non-QM financing solutions serve Riverside's growing freelance and business owner community. Each program uses different methods to verify your income and ability to repay.
Understanding how these loans differ helps you choose the right path. Your income documentation and business structure determine which option works best for your situation.
1099 Loans help independent contractors and freelancers qualify using their 1099 forms as income proof. This option works well if you receive 1099-MISC or 1099-NEC forms from clients.
Lenders review your 1099 income over one or two years to calculate qualifying income. You avoid the detailed tax return analysis that often reduces self-employed borrower buying power.
This program suits contractors with straightforward 1099 income streams. If most of your revenue comes through 1099 forms, this streamlined approach may be your best choice.
Bank Statement Loans use 12 to 24 months of personal or business bank statements to verify income. Lenders analyze deposits to determine your average monthly earnings and cash flow.
This non-QM option works for self-employed borrowers with diverse income sources. Business owners who write off many expenses see particular benefit from this approach.
The bank statement method often reveals higher qualifying income than tax returns show. Rates vary by borrower profile and market conditions, but flexibility makes this popular with Riverside entrepreneurs.
The main difference lies in documentation requirements and who benefits most. 1099 Loans require specific forms from clients, while Bank Statement Loans need consistent deposit history.
Bank Statement Loans typically help borrowers with complex business structures or multiple income streams. 1099 Loans work best for independent contractors with clear, documented client payments.
Income calculation methods also differ significantly between these programs. Bank statements show gross deposits, while 1099 forms provide straightforward income totals from each client.
Choose 1099 Loans if you work as an independent contractor receiving regular 1099 forms. This works well for consultants, freelancers, and gig workers with documented client relationships.
Bank Statement Loans suit business owners, entrepreneurs, and self-employed professionals with varied income. If you write off substantial expenses or have multiple revenue sources, bank statements tell a better story.
Both options serve Riverside's self-employed community effectively. A qualified mortgage broker can review your specific situation and recommend the program that maximizes your buying power.
Yes, many self-employed borrowers qualify for both programs. A mortgage professional can run scenarios to determine which provides better terms for your specific income situation.
Rates vary by borrower profile and market conditions for both programs. Your credit score, down payment, and documentation strength affect pricing more than the loan type itself.
1099 Loans typically review one to two years of 1099 forms. Bank Statement Loans require 12 to 24 months of consistent bank statements showing regular deposits.
No, both programs accept a range of credit profiles. Most lenders require minimum scores around 600-620, though better credit improves your rate and terms.
Yes, both 1099 Loans and Bank Statement Loans are available throughout Riverside and Riverside County. Local mortgage brokers specialize in these non-QM options.