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in Camarillo, CA
Self-employed borrowers in Camarillo have unique mortgage needs. Traditional W-2 income verification doesn't work for independent contractors and business owners.
Both 1099 loans and bank statement loans offer solutions for self-employed home buyers. Each uses different methods to verify your income and qualify you for a mortgage.
Understanding which option fits your financial situation can save time and help you get approved. Let's compare these two non-QM loan programs available in Ventura County.
1099 loans help independent contractors and freelancers who receive 1099 income instead of W-2 wages. This program uses your 1099 forms to verify your earnings.
If you work as a consultant, gig worker, or contractor, this loan may fit your needs. Lenders review your 1099 statements to calculate your qualifying income.
Rates vary by borrower profile and market conditions. Your credit score, down payment, and income stability all affect your terms.
Bank statement loans use 12 to 24 months of personal or business bank statements to verify income. This works well for self-employed borrowers with significant business expenses.
Rather than tax returns, lenders analyze your deposits to calculate income. This helps if your tax returns show low income due to write-offs.
These non-QM loans give business owners flexibility in documentation. Rates vary by borrower profile and market conditions based on your overall financial picture.
The main difference is documentation type. 1099 loans require 1099 forms showing contracted income, while bank statement loans analyze deposit history.
1099 loans work best for contractors with straightforward 1099 income. Bank statement loans benefit business owners who take many tax deductions that reduce reported income.
Bank statement programs typically require longer documentation periods. You'll need consistent deposits over 12 to 24 months versus annual 1099 forms.
Choose 1099 loans if you're a contractor or freelancer with clear 1099 income. This works well when your 1099s accurately reflect your earning power.
Bank statement loans suit business owners with significant expenses and deductions. If your tax returns don't show your true income capacity, this option helps.
Consider your documentation availability and how you structure your business income. A Camarillo mortgage broker can review your specific situation and recommend the best fit.
Some lenders may consider hybrid approaches. However, most programs require you to choose one documentation method. A mortgage broker can explain your options.
Rates vary by borrower profile and market conditions. Your credit score, down payment, and income stability matter more than the loan type itself.
Both typically require 10-20% down, though requirements vary by lender. Your specific down payment depends on credit score and other factors.
Yes, both 1099 and bank statement loans work for purchases and refinances. Self-employed Camarillo homeowners can use either program.
Processing times are similar to conventional loans, typically 30-45 days. Having organized documentation ready helps speed up the process.