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in Victorville, CA
Self-employed borrowers in Victorville have flexible financing options beyond traditional mortgages. Both 1099 loans and bank statement loans help independent workers qualify without W-2 income.
These non-QM loan programs serve the self-employed community in San Bernardino County. Each option verifies income differently, making one potentially better suited to your situation.
Understanding how each program works helps you choose the right path. Both can open doors to homeownership when conventional loans fall short.
1099 loans use your 1099 forms to verify income as an independent contractor or freelancer. This option works well if you receive regular 1099 documentation from clients.
Lenders review your 1099 forms instead of requiring traditional pay stubs or W-2s. This makes qualifying simpler for contractors with consistent client relationships.
The program focuses on documented income reported to the IRS. Rates vary by borrower profile and market conditions, with approval based on your filed income history.
Bank statement loans analyze 12 to 24 months of personal or business bank deposits. This non-QM option calculates income from actual cash flow rather than tax returns.
Lenders examine your bank statements to determine qualifying income through deposit patterns. This helps self-employed borrowers who write off significant business expenses.
The program typically uses deposit averaging over the review period. Rates vary by borrower profile and market conditions, with flexibility for various business types.
The main difference lies in documentation type and income calculation methods. 1099 loans rely on filed tax documents, while bank statement loans use cash flow analysis.
1099 loans work best when your reported income matches your true earnings. Bank statement loans shine when business deductions reduce your taxable income significantly.
Processing timelines may differ based on documentation complexity. Both programs serve self-employed borrowers but approach income verification from different angles.
Choose 1099 loans if you receive regular contractor income with minimal deductions. This works well when your filed income accurately reflects your earning capacity.
Bank statement loans suit self-employed borrowers with substantial write-offs or varied income sources. This option captures true cash flow that tax returns might understate.
Consider your business structure and how you manage expenses. A mortgage broker in San Bernardino County can evaluate both options for your specific situation.
Yes, some borrowers qualify for both programs. A broker will recommend the option that provides better terms based on your income documentation and financial profile.
Rates vary by borrower profile and market conditions for both programs. Your credit score, down payment, and documentation quality impact pricing more than loan type alone.
Both programs typically process in similar timeframes. Bank statement loans may take slightly longer due to deposit analysis, but both generally close within 30-45 days.
Yes, both 1099 and bank statement loans are available for purchase and refinance transactions. Victorville homeowners can use either option to refinance existing mortgages.
Both non-QM programs typically require minimum credit scores around 600-620. Higher scores improve your rates and terms regardless of which program you choose.