For Hunterdon County business owners, contractors and consultants whose tax returns show less than they earn: bank statement, profit and loss and 1099 loans, what each one counts as income, and what to do before you apply. Fidelity Residential is a direct, licensed mortgage lender with a New Jersey office on Route 36 in West Long Branch, in Monmouth County, and we lend across New Jersey.
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Fidelity Residential · NMLS #103098 · Equal Housing Lender
Census Bureau estimates for 2020 to 2024, from the American Community Survey, put Hunterdon County at about 130,200 residents and about 52,100 homes. Owners live in an estimated 85.1 percent of occupied homes, and the estimated median value of owner-occupied homes is about $517,200.
Of about 67,300 employed residents, about 8,300, roughly one in eight, work for themselves: about 4,000 in their own incorporated business, and about 4,400 in an unincorporated business or as unpaid family workers.
Fidelity Residential is a direct mortgage lender licensed in New Jersey under a Residential Mortgage Lender License. Our office is at 121 NJ-36, Suite 230, West Long Branch, in Monmouth County; we do not have an office in Hunterdon County, and we lend across New Jersey.
Source: US Census Bureau, American Community Survey 5-year estimates, 2020 to 2024. Estimates, not counts.
Both take the place of tax returns for your income. Which fits depends on how money moves through the business.
You send complete monthly statements, personal or business, every page, with proof the business is open. Eligible deposits are added up, transfers and other non-business money taken out, an expense allowance applied to business statements, and the rest averaged by month. If your real costs are lower than the allowance, your CPA, enrolled agent or licensed tax preparer can state them in a signed letter.
Bank statement loans in New JerseyA profit and loss statement for the business, prepared and signed by an independent tax professional, takes the place of tax returns; a statement you prepare yourself is not accepted. The net profit, adjusted for your share of ownership and for non-cash items such as depreciation, is the income, checked in most programs against recent business bank statements.
Profit and loss loansDeposits that do not tell the story, such as several accounts or large one-off receipts, can suit a profit and loss statement; a business paid steadily into one account can suit bank statements. A loan officer can work your income out both ways.
A 1099 loan is for independent contractors, freelancers and commission earners paid on IRS Form 1099 rather than a W-2. The lender works from the 1099 forms themselves instead of your tax returns, so it starts from what your clients paid you, not from the income left after deductions.
A recent move from employee to contractor with the same company can be accepted, because the work and the employer are the same. See 1099 loans.
None of these is a stated-income loan. Your credit, your savings, the appraisal and your debts compared with your income are still checked, and for a home you live in the lender must make a good-faith decision that you can repay the loan.
Do not send tax returns unless your loan officer asks: in most programs, tax returns in the file turn the loan into a full-documentation loan. And if your tax returns already show strong income, ask for a conventional quote as well: it may cost less.
Yes. Fidelity Residential is a dba of PFN Lending Group, Inc. (NMLS #103098), which holds a New Jersey Residential Mortgage Lender License, and we lend across New Jersey. You can check the licence on NMLS Consumer Access (opens in a new tab).
No. Our office is at 121 NJ-36, Suite 230, West Long Branch, NJ 07764, in Monmouth County. Call 732-686-9999 to talk with a licensed loan officer.
No. The statements, the profit and loss statement or the 1099 forms take their place for your income. If tax returns go into the file, the loan usually has to be reviewed as a full-documentation loan, so tell your loan officer which route you want.
Normally a CPA, an IRS enrolled agent or a state-registered tax preparer, who must be independent of the business. A statement you prepare yourself is not accepted.
The document the income comes from. A bank statement loan works out your income from the deposits in your bank statements, and suits business owners. A 1099 loan works it out from your 1099 forms, and suits independent contractors and commission earners.
Yes. Bank statement programs allow refinances, including cash-out refinances, within each program’s limits, and a 1099 loan can refinance the home you have; ask which programs allow cash out for your file.
Get a quote online, or call us and talk it through with a licensed loan officer.
This page is general information, not a commitment to lend. Programs, terms and eligibility depend on credit, income, property and underwriting review and are subject to change without notice.
Reviewed by Robert Shamie, CEO, NMLS #241428 · Last reviewed:
Fidelity Residential (PFN Lending Group, Inc., NMLS #103098) is a direct mortgage lender licensed in 40 states and the District of Columbia, with 26 years in business.