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in Oxnard, CA
Self-employed borrowers in Oxnard have unique financing needs. Traditional mortgages often don't work for freelancers and independent contractors.
Both 1099 loans and bank statement loans are non-QM options designed for self-employed buyers. Each uses different documentation to verify your income. Understanding which fits your situation helps you move forward confidently.
1099 loans are mortgage financing for independent contractors and freelancers who earn 1099 income. These loans use your 1099 forms instead of traditional W-2 wages to verify earnings.
This option works well if you receive 1099 forms from clients. Lenders review your 1099 documentation to determine your qualifying income. Rates vary by borrower profile and market conditions.
Bank statement loans use 12 to 24 months of bank statements to verify income. These non-QM loans work for self-employed borrowers who may not have traditional documentation.
Lenders analyze deposits in your business or personal accounts. This approach captures income that might not show on tax returns. Rates vary by borrower profile and market conditions.
The main difference is documentation type. 1099 loans require actual 1099 forms from clients, while bank statement loans use deposit history.
Bank statement loans may benefit those who write off significant business expenses. If your tax returns show minimal income but your deposits are strong, bank statements tell a better story. 1099 loans work best when you have clear contractor documentation.
Both are non-QM products, so they offer more flexibility than conventional mortgages. The right choice depends on how you document your income and which method shows your true earning power.
Choose 1099 loans if you consistently receive 1099 forms from multiple clients. This option is straightforward when your contractor income is well-documented.
Bank statement loans make sense if you have significant business deductions. They're also ideal if you don't receive 1099 forms but have strong deposit history. Many business owners prefer this method because it reflects actual cash flow.
Talk to a mortgage broker familiar with Oxnard's market. They can review your documentation and recommend the best path. Many self-employed borrowers qualify for both options.
Yes, many self-employed borrowers qualify for both. A mortgage broker can help you choose which documentation method results in better loan terms for your specific situation.
Rates vary by borrower profile and market conditions. Neither inherently offers better rates. Your specific financial situation determines your rate more than the loan type.
Bank statement loans typically require 12 to 24 months of statements. 1099 loans usually need one to two years of 1099 forms, depending on the lender.
Yes, both 1099 and bank statement loans are available throughout Ventura County, including Oxnard. Non-QM lenders serve self-employed borrowers across the region.
No, non-QM loans often accept lower credit scores than conventional mortgages. Specific requirements vary by lender and your overall financial profile.