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in Ojai, CA
Self-employed borrowers in Ojai have unique financing needs. Traditional mortgage lenders often struggle to verify income for independent contractors and business owners.
Both 1099 loans and bank statement loans offer alternatives to conventional financing. These non-QM options help self-employed professionals qualify without W-2 wage documentation.
Understanding the differences helps you choose the right loan for your situation. Rates vary by borrower profile and market conditions.
1099 loans serve independent contractors and freelancers who receive 1099 income forms. This option works well if most of your income comes from client payments reported on 1099s.
Lenders review your 1099 forms to verify earnings and calculate qualifying income. This straightforward approach works when your 1099s accurately reflect your cash flow.
The documentation process is simpler if you maintain organized tax records. You'll need consistent 1099 income history to qualify for favorable terms.
Bank statement loans use 12 to 24 months of personal or business bank statements to verify income. Lenders analyze deposits to determine your qualifying income amount.
This option works well for business owners with varied income sources. It's especially helpful if you have significant business expenses that reduce taxable income.
The bank statement method captures actual cash flow rather than taxable income. This approach often reveals higher qualifying income for self-employed borrowers.
The main difference lies in documentation requirements and income calculation methods. 1099 loans rely on formal income statements, while bank statement loans examine cash flow directly.
Bank statement loans typically accommodate more complex business structures. They work well when you have multiple income streams or significant write-offs that reduce taxable income.
1099 loans suit contractors whose income is clearly documented through client payments. Bank statements offer flexibility when your financial picture is more complicated.
Choose 1099 loans if you're a freelancer or contractor with straightforward client relationships. This works when your 1099 forms accurately represent your income without complications.
Bank statement loans make sense for business owners with various income sources. They're ideal if business expenses significantly reduce your reported taxable income.
Consider your business structure and how income flows through your accounts. A mortgage broker can analyze your specific situation and recommend the best fit.
Yes, many self-employed borrowers qualify for both options. Your broker will recommend whichever program shows your income most favorably and offers better terms.
Rates vary by borrower profile and market conditions. Neither program consistently offers better rates—it depends on your credit, down payment, and financial profile.
1099 loans typically require one to two years of forms. Bank statement loans need 12 to 24 months of consecutive statements from your accounts.
Yes, both loan types are available for properties in Ojai and throughout Ventura County. They work for primary homes, second homes, and investment properties.
Bank statement loans often work better for mixed income sources. They capture all deposits regardless of source, while 1099 loans focus specifically on contractor income.