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in Fillmore, CA
Self-employed borrowers in Fillmore have two strong non-QM mortgage options. Both 1099 Loans and Bank Statement Loans help independent workers qualify without traditional W-2 income documentation.
Choosing the right loan depends on how you receive income and what records you keep. Understanding the differences helps you pick the best path to homeownership in Ventura County.
1099 Loans serve independent contractors and freelancers who earn 1099 income. These mortgages verify your earnings through the 1099 forms you receive from clients.
This option works well if you have consistent 1099 documentation from multiple clients. Lenders review your 1099 forms to calculate qualifying income for your Fillmore home purchase. Rates vary by borrower profile and market conditions.
Bank Statement Loans use 12 to 24 months of bank statements to verify income for self-employed borrowers. This non-QM option analyzes deposits to determine your qualifying income.
Lenders review your business or personal bank statements instead of tax returns. This approach captures your actual cash flow, which often shows higher income than tax returns. Rates vary by borrower profile and market conditions.
The main difference lies in documentation type. 1099 Loans require specific 1099 forms from clients, while Bank Statement Loans need consistent bank records.
Bank Statement Loans typically work better for business owners with expenses that reduce taxable income. 1099 Loans suit contractors who receive clear 1099 documentation and want straightforward income verification.
Both options serve self-employed Fillmore borrowers who cannot use traditional mortgage programs. Your choice depends on which documentation you maintain and how your income flows.
Choose 1099 Loans if you receive regular 1099 forms from clients and your income is clearly documented. This works best for consultants, freelancers, and independent contractors with straightforward income streams.
Bank Statement Loans fit business owners who write off significant expenses or have varied income sources. If your tax returns show lower income due to deductions, bank statements reveal your true cash flow.
Both options help self-employed Fillmore residents qualify for mortgages. Consider which documentation you already maintain and which best represents your financial strength.
Some lenders may combine documentation types, but most programs focus on one verification method. Discuss your specific situation with a mortgage broker to find the best approach.
Rates vary by borrower profile and market conditions. Both loan types typically have similar rate ranges since they are both non-QM products designed for self-employed borrowers.
1099 Loans typically review one to two years of forms. Bank Statement Loans require 12 to 24 months of consecutive statements. Consistent income history strengthens your application.
Neither requires perfect credit, but both are non-QM loans with flexible guidelines. Your credit score affects your rate and terms. Most programs accept scores starting around 600.
Yes, Bank Statement Loans accept business bank statements. Lenders analyze deposits to calculate income. Some programs use personal statements, business statements, or a combination of both.