Loading
in San Buenaventura, CA
Self-employed borrowers in San Buenaventura have options beyond traditional mortgages. Both 1099 Loans and Bank Statement Loans help independent workers qualify without W-2 income.
These non-QM loan programs serve the growing freelance and contractor community in Ventura County. Each program verifies income differently, so understanding your documentation is key.
Choosing the right loan depends on how you receive income and what records you maintain. Rates vary by borrower profile and market conditions for both options.
1099 Loans use your 1099 forms to verify income as an independent contractor or freelancer. This program works well if you receive most income through 1099 documentation.
Lenders review your 1099 forms from the past one to two years. They calculate your qualifying income based on these official tax documents.
This option suits contractors who maintain clear 1099 records from clients. It provides a straightforward path if your income is well-documented through these forms.
Bank Statement Loans verify income using 12 to 24 months of personal or business bank statements. This program works for self-employed borrowers with varied income sources.
Lenders analyze deposits to calculate your average monthly income. They look at cash flow patterns rather than tax returns or 1099 forms.
This option helps borrowers who take business deductions that reduce taxable income. It can reveal higher qualifying income than tax documents show.
The main difference is documentation type: 1099 forms versus bank statements. 1099 Loans require official tax documents, while Bank Statement Loans use actual deposit records.
Bank Statement Loans often work better for borrowers with multiple income streams or significant deductions. 1099 Loans suit those with straightforward contractor income.
Processing times and underwriting can vary between programs. Your lender will review your specific situation to determine which shows your income best.
Choose 1099 Loans if most income comes through clear 1099 documentation from clients. This works well for contractors with consistent, well-documented freelance work.
Bank Statement Loans suit business owners with varied income or those who maximize tax deductions. They work when deposits show more income than tax forms reveal.
A San Buenaventura mortgage broker can review both options with you. They will analyze your documentation to find which program offers better terms for your situation.
You typically choose one program, but your lender may review both to see which shows your income best. Some borrowers qualify under either option.
Rates vary by borrower profile and market conditions for both programs. Your credit score, down payment, and documentation strength affect your specific rate.
Non-QM loans often require 10-20% down, though requirements vary by lender. Your specific down payment depends on credit and income documentation.
Both typically take 30-45 days to close. Bank Statement Loans may need more time for deposit analysis, while 1099 Loans review is often simpler.
Yes, both programs work for purchase and refinance transactions. Self-employed homeowners use these to refinance existing properties throughout the county.