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in Santa Paula, CA
Self-employed borrowers in Santa Paula have two strong non-QM mortgage options. Both 1099 Loans and Bank Statement Loans help independent workers qualify without traditional W-2 income.
These alternative financing solutions serve Ventura County's growing self-employed community. Each program uses different methods to verify your income and ability to repay.
1099 Loans are mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages. This program specifically targets those who receive 1099 forms from clients.
Lenders verify your income using your 1099 tax forms from clients or businesses. This straightforward approach works well if you have consistent 1099 income. Rates vary by borrower profile and market conditions.
Bank Statement Loans are non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers. Your actual deposits show your earning power.
Instead of tax returns, lenders review your business or personal bank statements. This method captures income that might not show up clearly on tax forms. Rates vary by borrower profile and market conditions.
The main difference lies in how each program verifies your income. 1099 Loans rely on tax forms you receive from clients. Bank Statement Loans look at your actual deposit history over one to two years.
1099 Loans work best for contractors with clear 1099 documentation. Bank Statement Loans offer more flexibility if you write off many business expenses. Your documentation style often determines which fits better.
Choose 1099 Loans if you receive most income via 1099 forms and have clean documentation. This option works perfectly for consultants, freelancers, and independent contractors with straightforward income.
Pick Bank Statement Loans if you write off significant business expenses or have varied income sources. Business owners often benefit from showing deposits rather than taxable income. A mortgage broker can analyze your specific situation.
Both programs serve Santa Paula's self-employed community well. Your income documentation and business structure determine the best fit. Working with an experienced broker ensures you choose wisely.
Some lenders may consider hybrid approaches, but most loans use one primary method. A broker can determine if combining documentation helps your specific case.
Rates vary by borrower profile and market conditions for both programs. Your credit score, down payment, and financial strength matter more than the loan type itself.
Both loan types typically take 30 to 45 days to close. Timeline depends on how quickly you provide documentation and the lender's current volume.
Most lenders prefer two years of self-employment for both programs. However, some may accept one year with strong compensating factors like high credit scores.
Yes, both 1099 Loans and Bank Statement Loans are available throughout Santa Paula and all of Ventura County. Location doesn't limit your options for these programs.