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in Ontario, CA
Self-employed borrowers in Ontario, San Bernardino County have two strong mortgage options. Both 1099 Loans and Bank Statement Loans help when traditional income verification doesn't work.
These non-QM products serve independent contractors, freelancers, and business owners. Each uses different documentation to prove your ability to repay. Understanding the differences helps you choose the right path.
Rates vary by borrower profile and market conditions. Working with an experienced mortgage broker ensures you get matched to the best loan for your situation.
1099 Loans help independent contractors and freelancers who receive 1099 forms instead of W-2s. This mortgage option uses your 1099 income documentation to verify earnings.
Lenders review your 1099 forms from the past one to two years. They calculate your qualifying income based on these tax documents. This works well if you have consistent 1099 income with minimal business expenses.
This loan type is ideal for consultants, gig workers, and contract employees. You'll need clean tax records and steady income history to qualify.
Bank Statement Loans use 12 to 24 months of bank statements to verify income. Lenders analyze deposits to calculate your average monthly earnings.
This option works well for self-employed borrowers with significant business expenses. Your gross deposits matter more than what you report on tax returns. The lender typically uses 50% to 100% of average deposits as qualifying income.
Business owners, freelancers with variable income, and entrepreneurs benefit from this flexibility. You avoid being penalized for legitimate tax write-offs that lower your reported income.
The main difference is documentation type. 1099 Loans rely on tax forms while Bank Statement Loans analyze bank deposits. Your business structure and expenses determine which works better.
If you write off many business expenses, Bank Statement Loans usually show higher qualifying income. If you receive clean 1099 income without heavy deductions, either option could work well.
Bank Statement Loans typically require more documentation but offer more flexibility. 1099 Loans have a simpler process if your income is straightforward. Both serve Ontario borrowers who don't fit conventional lending boxes.
Choose 1099 Loans if you're a contractor with steady 1099 income and few business expenses. This path is simpler when your tax returns accurately reflect your earnings.
Bank Statement Loans fit business owners who write off significant expenses. If your tax returns show low income but your bank shows strong deposits, this is your solution.
An Ontario mortgage broker can review your specific situation. They'll compare both options and recommend the one that maximizes your buying power. Many borrowers qualify for both and choose based on rate and terms.
Yes, many self-employed borrowers qualify for both. A mortgage broker will compare which option offers better rates and loan amounts based on your specific income documentation.
Rates vary by borrower profile and market conditions. Neither loan type consistently offers lower rates. Your credit score, down payment, and income stability matter most.
1099 Loans typically require one to two years of forms. Bank Statement Loans need 12 to 24 months of statements. Longer histories often improve your approval odds.
Yes, both 1099 and Bank Statement Loans are available in Ontario and throughout San Bernardino County. They work for purchases and refinances.
Most non-QM lenders require credit scores of 600 or higher. Better scores unlock better rates. Your broker can discuss specific requirements for each program.