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in Weed, CA
Both 1099 loans and bank statement loans serve self-employed borrowers in Weed who can't show traditional W-2 income. The key difference is how each program verifies what you actually earn.
1099 loans work best when your tax returns reflect strong income. Bank statement loans shine when you write off most earnings but have healthy deposits flowing through your accounts.
1099 loans verify income using your actual 1099 forms and tax returns. Lenders typically average your net income from the past two years to calculate what you can borrow.
This program works when your tax returns show solid earnings. If you claim minimal deductions and report most of your 1099 income, this path often delivers better rates than bank statement loans.
Most lenders require 12-24 months of self-employment history in the same field. Credit minimums usually start at 620, though some programs accept lower scores with larger down payments.
Bank statement loans skip tax returns entirely. Lenders analyze 12 or 24 months of personal or business bank statements to calculate your average monthly deposits.
This program solves the write-off problem. When your tax returns show $40K but your bank statements show $120K in deposits, bank statement loans use the higher number.
Most programs let lenders count 50-100% of deposits as income depending on your business type. Expect credit minimums around 620 and down payments starting at 10-15%.
The documentation split is the main divider. 1099 loans need tax returns showing strong net income. Bank statement loans need consistent deposits but don't care what your 1040 says.
Rates often favor 1099 loans when both options work for you. Bank statement loans carry slightly higher rates because lenders see more risk in ignoring tax returns.
Income calculation methods vary wildly. A 1099 loan might qualify you at $60K based on reported income while a bank statement loan qualifies you at $95K based on deposits.
Choose 1099 loans when your tax returns look good and show steady income growth. If you're a contractor who doesn't max out business deductions, this path costs less.
Pick bank statement loans when you write off most earnings for tax purposes. Real estate agents, construction contractors, and small business owners in Weed often fit this profile better.
Some borrowers actually qualify under both programs. When that happens, compare the loan amounts and rates side by side before choosing.
No. Lenders pick one income verification method per loan. You'll apply under either the 1099 program or the bank statement program, not both simultaneously.
Both typically require 620+ credit. Bank statement loans sometimes accept 600 scores with 20% down, but rates jump significantly at that level.
Most lenders want 24 months of history in your field. Some bank statement programs accept 12 months if deposits show strong consistency and growth.
1099 loans often close quicker because tax returns are simpler to review. Bank statement loans need more underwriter analysis of deposit patterns.
Yes, but it restarts the clock. Switching programs means new documentation requirements and a fresh underwriting review from the beginning.