Loading
in Simi Valley, CA
Self-employed borrowers in Simi Valley have multiple paths to homeownership. Both 1099 Loans and Bank Statement Loans help independent workers qualify without traditional W-2 income.
These non-QM options serve different types of self-employed professionals. Understanding how each program verifies income helps you choose the right fit for your situation.
Rates vary by borrower profile and market conditions. Working with an experienced broker ensures you get the best terms available in Ventura County.
1099 Loans help independent contractors and freelancers who receive 1099 forms from clients. This program uses your 1099 income documentation to verify your ability to repay.
If you have consistent 1099 income from multiple clients or contracts, this option works well. Lenders review your 1099 forms from the past one to two years.
This approach works best when your income is straightforward and reflected on your tax returns. You'll need organized 1099 forms and tax documents ready for underwriting.
Bank Statement Loans use 12 to 24 months of personal or business bank statements to calculate income. This method captures deposits and cash flow rather than relying solely on tax returns.
Self-employed borrowers who write off significant business expenses benefit most from this program. Your actual deposits matter more than your taxable income on this option.
Lenders analyze your bank statements to determine average monthly income. This approach reveals your true earning power even when tax deductions reduce reported income.
The main difference is how each program calculates your income. 1099 Loans rely on tax documents while Bank Statement Loans analyze actual deposits in your accounts.
1099 Loans work better if your tax returns accurately reflect your income. Bank Statement Loans shine when you take substantial write-offs that reduce taxable income but maintain strong cash flow.
Documentation requirements differ significantly between these programs. 1099 Loans need organized tax forms while Bank Statement Loans require consecutive months of banking records.
Choose 1099 Loans if you're an independent contractor with straightforward income and minimal deductions. This works well for consultants, freelancers, and gig workers with clear 1099 documentation.
Pick Bank Statement Loans if you're self-employed with significant business expenses that reduce taxable income. Business owners, real estate agents, and entrepreneurs often benefit from this approach.
Both programs serve Simi Valley's diverse self-employed community effectively. A local mortgage broker can review your specific situation and recommend the best path forward.
Yes, many self-employed borrowers qualify for both options. Your broker will analyze which program offers better terms based on your specific income documentation and financial profile.
Rates vary by borrower profile and market conditions for both programs. Neither consistently offers lower rates; your credit score, down payment, and documentation determine your specific rate.
Both typically take 30-45 days to close. Bank Statement Loans may require extra time for income calculation from statements, while 1099 Loans process faster with organized tax documents.
No, both programs accept lower credit scores than conventional loans. Most lenders require minimum scores around 600-640, though better credit gets you more favorable terms.
Yes, both 1099 and Bank Statement Loans can finance investment properties in Simi Valley. Investment property loans typically require larger down payments than primary residences.