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in Redlands, CA
Self-employed borrowers in Redlands have two strong mortgage options. Both 1099 Loans and Bank Statement Loans help freelancers and business owners qualify without W-2 income.
These non-QM loan programs verify income differently than traditional mortgages. Understanding the differences helps you choose the best fit for your financial situation.
Both options serve San Bernardino County borrowers who earn income through self-employment. The right choice depends on how you receive and document your earnings.
1099 Loans help independent contractors and freelancers who receive 1099 forms from clients. This option works well if you have consistent 1099 income documentation.
Lenders review your 1099 forms to verify earnings from your self-employment work. You typically need at least one to two years of 1099 history.
This program suits contractors, consultants, and gig workers with clear 1099 records. Rates vary by borrower profile and market conditions.
Bank Statement Loans use 12 to 24 months of bank statements to verify income. This approach works for self-employed borrowers who may not receive traditional income documents.
Lenders analyze deposits in your business or personal accounts to calculate qualifying income. This method captures income that might not show on tax returns.
Business owners who write off significant expenses often benefit from this option. Rates vary by borrower profile and market conditions.
The main difference lies in documentation methods. 1099 Loans rely on forms from clients, while Bank Statement Loans examine actual deposits.
1099 Loans work best when you have clear contractor relationships with clients who issue forms. Bank Statement Loans offer flexibility for varied income sources.
Bank Statement Loans may capture more income if you have business expenses that reduce taxable earnings. 1099 Loans provide a straightforward path when you have proper documentation.
Choose 1099 Loans if you primarily work as an independent contractor with multiple clients. This works well when you have consistent 1099 forms to provide.
Bank Statement Loans make sense if you own a business with fluctuating income sources. They also help when your tax returns don't reflect your true earning power.
Both programs serve Redlands self-employed borrowers effectively. A mortgage professional can review your specific income documentation and recommend the best fit.
Yes, some borrowers qualify for both programs. A lender will help you determine which option provides better terms based on your income documentation.
Non-QM loans often have slightly higher rates due to flexible qualification standards. Rates vary by borrower profile and market conditions in Redlands.
1099 Loans require 1-2 years of 1099 forms. Bank Statement Loans need 12-24 months of statements from business or personal accounts.
Processing times are similar for both programs. The speed depends more on how quickly you provide complete documentation to your lender.
Down payment requirements are typically similar for both programs. Most non-QM loans require 10-20% down, depending on your credit and situation.