Income requirements for Independent Contractors or Self Employed Applicants

Not everyone has easily documentable income such as paycheck stubs. Bella Vegas Homes does try to work with different methods of income. Documentation is key in proving income. Below is the documentation needed to prove income:

Independent contractors. Defined as a 1099 employee who receives income from 1 or 2 maximum sources, the expenses involved are low to none and the income is relatively stable. Some examples are Truck Drivers, Consultants, and Work at Home Contractors. 3 months of full bank statements are all that’s needed. However the deposits must come from no more than 2 sources and cannot be cash.

Self Employed. Defined as business owner who collects payment from many people or companies, or are in a job where they bear the bulk of the expenses, or collect large sums with periods of income drought. Some examples are Store and Business Owners, Lyft Drivers, and Real Estate Agents. There are two methods of documentation

Method A: Payments or transfers from business to personal account. Every good business owner should have separate business and personal accounts. The payments you make to yourself is your documented salary. 3 months of bank statements are needed.

Method B: 3 months bank statement showing deposits in total AND last year business tax returns showing net business income. The lower of the two figures will be used to calculate income.