Loading
in Needles, CA
Self-employed borrowers in Needles, San Bernardino County have two strong mortgage options. Both 1099 loans and bank statement loans help freelancers and business owners qualify without traditional W-2 income.
These non-QM loans offer flexible underwriting for self-employed professionals. Each program uses different documentation to verify your income and ability to repay.
Choosing the right loan depends on how you receive income and what records you keep. Understanding both options helps you move forward with confidence.
1099 loans are designed for independent contractors and freelancers who receive 1099 forms. This program uses your 1099 tax documents to verify income instead of pay stubs.
Lenders typically review one to two years of 1099 forms and tax returns. The process is straightforward if you have organized records from clients who issue 1099s.
This option works well for consultants, gig workers, and contractors with clear 1099 income. Rates vary by borrower profile and market conditions.
Bank statement loans use 12 to 24 months of personal or business bank statements. This non-QM program calculates income based on deposits rather than tax returns.
Lenders analyze your bank statements to determine average monthly income. This approach often shows higher income than tax returns because it includes gross revenue.
Business owners who write off many expenses benefit most from this option. Rates vary by borrower profile and market conditions.
The main difference lies in documentation requirements and income calculation. 1099 loans rely on tax forms while bank statement loans use deposit history.
Bank statement loans often qualify borrowers for higher amounts because they count gross deposits. 1099 loans base qualification on net income after deductions shown on tax returns.
Processing times and documentation complexity also vary between the two programs. Your business structure and recordkeeping habits determine which path is smoother.
Choose 1099 loans if you receive most income through 1099 forms from clients. This works best when your tax returns accurately reflect your earning power.
Bank statement loans suit business owners with significant write-offs and expenses. If your tax returns show low net income but healthy cash flow, this option helps.
Consider working with a Needles mortgage broker who understands both programs. They can review your specific situation and recommend the best path forward for your home purchase.
Most lenders require at least two years of self-employment history. Some programs accept one year if you have strong credit and substantial down payment funds.
Rates vary by borrower profile and market conditions. Both are non-QM loans with similar rate ranges. Your credit score and down payment affect pricing more than loan type.
Non-QM loans typically require 10-20% down payment. The exact amount depends on your credit score, income documentation, and the specific lender program.
Some lenders allow combining documentation types to maximize qualifying income. A mortgage broker can structure your application to show the strongest financial picture.
Both typically take 30-45 days to close. Bank statement loans may require additional time for deposit analysis. Having organized documents ready speeds up the process.