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in Upland, CA
Self-employed borrowers in Upland have two strong non-QM loan options. Both 1099 Loans and Bank Statement Loans help independent contractors qualify without traditional W-2 income.
These programs work differently and serve different needs. Understanding which documentation method fits your business structure makes all the difference. Rates vary by borrower profile and market conditions.
1099 Loans use your 1099 forms to verify income. This program works best for independent contractors and freelancers who receive 1099s from clients.
You'll need to provide 1099 forms from recent years. Lenders calculate your qualifying income directly from these tax documents. This option simplifies the process if you have consistent 1099 income.
The program recognizes that many contractors earn solid income without being W-2 employees. It's designed specifically for the way independent workers get paid.
Bank Statement Loans analyze 12 to 24 months of personal or business bank deposits. This method works for self-employed borrowers regardless of how they're paid.
Lenders review your bank statements to calculate average monthly income. They can see your actual cash flow instead of relying on tax returns. This helps if you take many business deductions.
This program serves a wider range of self-employed professionals. It works whether you get 1099s, own an LLC, or run a sole proprietorship.
The main difference is documentation type. 1099 Loans require specific tax forms while Bank Statement Loans review actual deposits.
1099 Loans work best when you have clear 1099 income from multiple clients. Bank Statement Loans offer more flexibility for various business types and payment methods.
Bank Statement Loans can help if you write off many expenses. They look at gross deposits before deductions. 1099 Loans rely on reported income which may be lower after business expenses.
Choose 1099 Loans if you earn most income as an independent contractor with clear 1099s. This program is simpler when your tax forms show strong qualifying income.
Pick Bank Statement Loans if you own a business with significant expenses. They're also better if you receive payments through various methods or don't get regular 1099s.
A qualified mortgage broker in San Bernardino County can review your situation. They'll recommend the program that maximizes your buying power in Upland.
Some lenders allow hybrid approaches. However, you typically choose one program based on which shows your income best. A broker can help determine the strongest option.
Rates vary by borrower profile and market conditions. Both programs typically have similar rate ranges. Your credit score and down payment affect rates more than the program type.
Both programs usually take 3-5 weeks to close. Bank Statement Loans may need slightly more review time since lenders analyze multiple months of statements.
Requirements vary by lender. Some want full returns while others only need specific forms. Bank Statement programs often require fewer tax documents.
Neither is universally easier. Qualification depends on your specific income documentation. The right choice shows your income in the strongest light.