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in Chino, CA
Self-employed borrowers in Chino, San Bernardino County have specialized mortgage options. Both 1099 loans and bank statement loans help those without W-2 income qualify for home financing.
These non-QM loan programs use alternative income verification methods. They serve independent contractors, freelancers, and business owners who need flexible documentation. Rates vary by borrower profile and market conditions.
Choosing the right option depends on how you receive income and what documentation you can provide. Understanding the differences helps you move forward with confidence in the Chino housing market.
1099 loans are designed for independent contractors and freelancers who earn 1099 income. You verify income using your 1099 forms rather than traditional pay stubs or W-2s.
This program works well if you receive most income through 1099 forms from clients. Lenders review your tax returns and 1099 documentation to determine your qualifying income.
The application process focuses on consistent 1099 earnings over time. You'll need organized records of your freelance or contract work to demonstrate stable income.
Bank statement loans use 12 to 24 months of bank statements to verify income. This non-QM option helps self-employed borrowers who may not have extensive 1099 documentation.
Lenders analyze deposits in your business or personal accounts to calculate qualifying income. This method works for business owners with varied income sources and structures.
You'll provide recent bank statements showing regular deposits and cash flow. The lender calculates your average monthly income from these statements rather than tax returns alone.
The main difference is documentation type. 1099 loans rely on tax forms from clients, while bank statement loans use your actual bank deposits.
Bank statement loans offer more flexibility for business owners with multiple income streams. 1099 loans work better when you have clear contractor relationships with documented forms.
Both programs accommodate self-employed borrowers in Chino who can't use traditional verification. Your income structure determines which option fits your situation best.
Choose 1099 loans if you're an independent contractor with organized 1099 forms. This works when clients provide proper tax documentation for your services.
Bank statement loans suit business owners with deposits from multiple sources. They're ideal when your income doesn't come through traditional 1099 relationships.
Consider your record-keeping style and income structure. A mortgage professional in San Bernardino County can review your specific situation and recommend the best path forward.
Some lenders may consider hybrid approaches. However, most loans use one primary verification method. A mortgage broker can explain options that fit your documentation.
Non-QM loans typically have higher rates than conventional financing due to flexible guidelines. Rates vary by borrower profile and market conditions in Chino.
1099 loans typically require one to two years of 1099 forms. Bank statement loans need 12 to 24 months of statements showing consistent deposits.
Many non-QM lenders offer both loan types for investment properties. Eligibility depends on your income documentation and the specific property situation.
Credit requirements vary by lender and loan program. Most non-QM loans require minimum scores between 600 and 660, though higher scores get better terms.