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in Barstow, CA
Self-employed borrowers in Barstow have options beyond traditional mortgages. Both 1099 loans and bank statement loans help independent workers qualify without W-2 income.
These non-QM loans serve different types of self-employed professionals. Understanding the differences helps you choose the right financing for your Barstow home purchase.
Both programs work well in San Bernardino County's market. Rates vary by borrower profile and market conditions, so it pays to compare your options carefully.
1099 loans help independent contractors and freelancers who receive 1099 forms. This program uses your 1099 income statements instead of traditional W-2 wages.
If you work as a consultant, gig worker, or contractor, this loan type matches your income style. Lenders review your 1099 forms to verify your earnings capacity.
This option works best when your income comes primarily through 1099 forms. It simplifies the process for borrowers with straightforward contractor income.
Bank statement loans use 12 to 24 months of bank statements to verify income. This non-QM program serves self-employed borrowers with varied income sources.
Instead of tax returns, lenders analyze your bank deposits to calculate income. This approach works well for business owners who write off significant expenses.
The program typically reviews personal or business bank statements. It helps borrowers whose tax returns don't reflect their true earning power.
The main difference lies in documentation requirements. 1099 loans need your 1099 forms, while bank statement loans analyze deposit patterns instead.
Bank statement loans offer more flexibility for complex income situations. They work for borrowers with multiple revenue streams or significant business deductions.
1099 loans suit contractors with simpler income structures. Bank statement loans better serve business owners whose expenses reduce their taxable income significantly.
Choose 1099 loans if most of your income comes through 1099 forms. This option works when your contractor income is steady and well-documented.
Pick bank statement loans if you own a business or have varied income sources. This program helps when tax deductions make your income look lower than it actually is.
Consider your documentation situation carefully. If your bank statements show strong deposits but your tax returns show less income, bank statement loans often work better.
Some lenders may consider hybrid approaches, but typically you choose one program. A mortgage broker can help determine which documentation method works best for your situation.
Rates vary by borrower profile and market conditions for both programs. Your credit score, down payment, and documentation strength matter more than the loan type itself.
Bank statement loans typically require 12 to 24 months of statements. 1099 loans usually need one to two years of 1099 forms, depending on the lender.
Yes, both 1099 loans and bank statement loans are available in Barstow and throughout San Bernardino County. Non-QM lenders serve the entire area.
Non-QM loans often require higher down payments than conventional loans. Expect 10-20% down, though requirements vary by lender and borrower qualifications.