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in Lindsay, CA
Self-employed borrowers in Lindsay face a common problem: showing income without W-2s. Both 1099 loans and bank statement loans solve this, but they work in completely different ways.
Your choice depends on how you run your business and what your tax returns actually show. Most borrowers qualify for one but not both.
1099 loans use your actual 1099 forms to prove income. Lenders average your gross 1099 income over 12 to 24 months, depending on how consistent your earnings are.
This works well if you write off minimal expenses and your 1099s show strong, steady income. The cleaner your 1099 pattern, the easier the approval.
Rates typically run 1-2% higher than conventional loans. You need 620+ credit and at least 10% down, though 15-20% gets better terms.
Bank statement loans analyze deposits in your business or personal accounts. Lenders review 12 or 24 months of statements and calculate your average monthly income.
This option shines when you write off heavy expenses but maintain strong cash flow. Your tax returns might show little income, but your bank account tells the real story.
Expect rates 1.5-3% above conventional. Most lenders want 640+ credit and 15-20% down, though some accept 10% with strong compensating factors.
The core difference is what counts as income. 1099 loans look at what you earned before expenses. Bank statement loans look at what actually hit your account.
If you're a contractor who writes off little, 1099 loans are cleaner and often cheaper. If you maximize tax deductions, bank statements show your true cash flow better.
Bank statement loans typically qualify you for more house because they ignore your tax strategy. But they also cost more and need larger down payments.
Choose 1099 loans if your forms show stable income and you don't aggressively reduce taxable earnings. This path costs less and works with smaller down payments.
Pick bank statement loans if you write off 40%+ of your income or your 1099s fluctuate wildly. Lindsay's agricultural and service businesses often fit this profile perfectly.
Most self-employed borrowers should run numbers both ways. We shop your scenario across both programs to find which actually approves you for more house at the best rate.
No. Lenders use one income method per loan. We pick whichever qualifies you for better terms based on your specific tax and banking history.
Most lenders want 24 months. Some accept 12 months if your income is strong and consistent, particularly with 1099 loans.
Both take 30-45 days. Bank statement loans add a few days for deposit analysis, but the difference is minimal in practice.
Yes, but it restarts underwriting. Better to analyze both options upfront so we submit to the right lender the first time.
Yes. 24-month income history typically gets better rates because lenders see more stability. Rates vary by borrower profile and market conditions.