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in Adelanto, CA
Self-employed borrowers in Adelanto have multiple mortgage options beyond traditional loans. Both 1099 loans and bank statement loans help independent contractors qualify without W-2 income.
These non-QM mortgages serve the growing self-employed community in San Bernardino County. Each program uses different methods to verify your income and ability to repay.
Choosing the right loan depends on how you receive income and what documentation you can provide. Understanding the differences helps you find the best fit for your situation.
1099 loans are designed for independent contractors and freelancers who receive 1099 forms. This mortgage option uses your 1099 income statements to prove your earnings.
These loans work well if you have consistent 1099 income from clients. Lenders review your 1099 forms from the past one to two years to calculate your qualifying income.
Rates vary by borrower profile and market conditions. Your credit score, down payment, and income stability all affect your final terms.
Bank statement loans use 12 to 24 months of personal or business bank statements to verify income. This approach works for self-employed borrowers who write off many business expenses.
Lenders analyze your deposits to calculate average monthly income. This method often reveals higher qualifying income than tax returns show, especially if you have significant deductions.
These non-QM loans offer flexibility for business owners in Adelanto. Rates vary by borrower profile and market conditions based on your complete financial picture.
The main difference is how each program verifies your income. 1099 loans rely on official income forms from clients, while bank statement loans track actual deposits.
Bank statement loans often work better if you have multiple income sources or significant tax deductions. 1099 loans are simpler if you have straightforward contractor income with minimal expenses.
Documentation requirements differ significantly between the two programs. 1099 loans need official tax forms, while bank statement loans require months of banking history.
Choose 1099 loans if most of your income comes through 1099 forms from clients. This works best when your tax returns accurately reflect your earning power.
Bank statement loans make more sense if you write off substantial business expenses. They also help if you have varied income sources that show up as deposits but not on 1099s.
Consider working with a mortgage broker in San Bernardino County who understands both programs. They can review your specific income documentation and recommend the best path forward for your Adelanto home purchase.
Some lenders may consider combining documentation types. However, most programs use one verification method as the primary basis for calculating your qualifying income.
Rates vary by borrower profile and market conditions for both programs. Your credit score, down payment, and income stability matter more than the specific loan type.
Both programs typically require 10-20% down for non-QM loans. Your specific requirement depends on credit score, income documentation, and property type.
Most lenders prefer two years of self-employment history. However, some programs accept one year with strong income and credit profiles.
Both 1099 and bank statement loans can finance investment properties in Adelanto. Expect higher down payments and rates for non-owner occupied properties.