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in Chino Hills, CA
Self-employed borrowers in Chino Hills have two strong non-QM options for home financing. Both 1099 Loans and Bank Statement Loans help independent workers qualify without traditional W-2 income documentation.
Choosing between these programs depends on how you receive income and what records you maintain. Understanding the differences helps you pick the right path for your Chino Hills home purchase or refinance.
1099 Loans help independent contractors and freelancers qualify using their 1099 forms as income proof. This option works well if you receive most earnings through 1099 income statements from clients.
Lenders review your 1099 forms to calculate qualifying income for your mortgage. This streamlined approach benefits contractors who maintain organized tax records and receive formal 1099 documentation.
The program serves San Bernardino County borrowers who want straightforward income verification. Your 1099 forms tell the complete story of your earnings without extensive bank record review.
Bank Statement Loans use 12 to 24 months of bank statements to verify income for self-employed borrowers. Lenders analyze deposits to determine your qualifying income amount.
This non-QM option works for business owners and self-employed professionals with varied income sources. You don't need to rely solely on 1099 forms or tax returns to prove earnings.
The program reviews your actual cash flow through bank accounts. This approach captures income that might not show clearly on tax forms due to business deductions.
The main difference lies in documentation: 1099 Loans focus on tax forms while Bank Statement Loans examine actual deposits. Your income structure determines which approach works better for your situation.
Bank Statement Loans typically require more paperwork but capture diverse income streams. 1099 Loans offer simpler documentation if you receive regular 1099 income from established client relationships.
Both programs serve Chino Hills self-employed borrowers effectively. Rates vary by borrower profile and market conditions, so comparing both options makes sense when shopping for financing.
Choose 1099 Loans if you're an independent contractor who receives most income through formal 1099 statements. This works best when your tax forms accurately reflect your qualifying income without complex deductions.
Bank Statement Loans fit better if you own a business with expenses that reduce taxable income. This option helps when your bank deposits show stronger earnings than your tax returns indicate.
Talk with a Chino Hills mortgage broker to review your specific situation. They can analyze your documentation and recommend the program that maximizes your buying power in San Bernardino County.
Some lenders may consider hybrid documentation approaches. A mortgage broker can determine if combining both income proofs strengthens your Chino Hills application.
Rates vary by borrower profile and market conditions for both programs. Your credit score, down payment, and income stability affect pricing more than the specific loan type.
Both programs typically take 30-45 days to close. Processing time depends on how quickly you provide documentation and lender workload in San Bernardino County.
Down payment requirements are usually similar for both programs. Most non-QM loans in Chino Hills require 10-20% down, depending on your complete financial profile.
Most lenders require 620-640 minimum credit scores for both programs. Higher scores improve your rate and terms regardless of which documentation method you choose.