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in Big Bear Lake, CA
Self-employed borrowers in Big Bear Lake have unique financing needs. Traditional mortgages often don't work for independent contractors and business owners.
Both 1099 Loans and Bank Statement Loans are non-QM options designed for self-employed borrowers. Each uses different methods to verify your income and qualify you for a home loan.
Choosing the right option depends on how you receive income and what documentation you can provide. Understanding the differences helps you make the best decision for your situation.
1099 Loans are mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages. These loans use your 1099 forms to document your earnings.
If you work as a consultant, gig worker, or independent contractor, this option may fit your needs. Lenders review your 1099 forms from recent years to determine your qualifying income.
This approach works well when you have consistent 1099 income to show. Rates vary by borrower profile and market conditions.
Bank Statement Loans use 12 to 24 months of bank statements to verify income for self-employed borrowers. This non-QM option provides flexibility when tax returns don't show your full earnings.
Business owners who take significant write-offs often benefit from this approach. Lenders analyze deposits in your accounts to calculate your average monthly income.
You'll need to provide either personal or business bank statements covering the required period. Rates vary by borrower profile and market conditions.
The main difference lies in documentation requirements. 1099 Loans rely on tax forms showing reported income, while Bank Statement Loans use actual deposits in your accounts.
Bank Statement Loans often work better for business owners who maximize deductions. 1099 Loans suit independent contractors with straightforward reported income on tax documents.
Both options serve self-employed borrowers in Big Bear Lake, but your income structure determines which makes more sense. Consider how you report income and what records you maintain.
Choose 1099 Loans if you receive most income through 1099 forms and report it fully. This works well for consultants and contractors without complex business expenses.
Choose Bank Statement Loans if you own a business with significant write-offs. This option helps when your tax returns understate your actual earning power due to legitimate deductions.
A mortgage broker can review your specific situation and recommend the best path. Both options can help you secure financing for a home in Big Bear Lake.
1099 Loans use your tax forms to verify income, while Bank Statement Loans use 12-24 months of bank deposits. The choice depends on which documentation better reflects your earning power.
Yes, many self-employed borrowers qualify for both options. A mortgage broker can compare which offers better terms based on your specific income documentation.
No, both loan types are available throughout San Bernardino County and beyond. They're designed for self-employed borrowers purchasing properties anywhere.
Rates vary by borrower profile and market conditions. Non-QM loans may have different pricing than conventional loans, but competitive rates are available for qualified borrowers.
Timeline depends on how quickly you provide documentation. Both loan types typically close within 30-45 days once all required documents are submitted and verified.