Loading
in Emeryville, CA
Emeryville attracts a lot of self-employed borrowers — consultants, freelancers, and business owners who can't show a W-2. Two non-QM loan types are built for exactly this situation.
1099 loans and bank statement loans both skip traditional income verification. But they work differently, and the wrong choice can cost you time and money.
1099 loans use your 1099 forms — typically one to two years — to verify income. Lenders look at what clients paid you, not what your bank account shows.
This works best for independent contractors with consistent clients. If your 1099s show strong gross income, lenders can qualify you on that number directly.
Bank statement loans use 12 to 24 months of deposits to calculate your income. Lenders apply an expense ratio to your deposits and qualify you on what's left.
This suits business owners with high revenue but heavy write-offs. Your tax return may show low income — your bank account tells a different story.
The core difference is documentation. 1099 loans rely on income reported to the IRS. Bank statement loans rely on cash actually deposited into your accounts.
Rates vary by borrower profile and market conditions. Both loan types carry higher rates than conventional loans. Bank statement loans often price slightly higher due to the added complexity of deposit analysis.
If you're a W-2-free contractor with clean 1099s and minimal write-offs, the 1099 loan is simpler. Fewer moving parts, and lenders can underwrite it faster.
If you're a business owner who aggressively deducts expenses, bank statement loans protect you. Your deposits reflect the real cash flow your tax returns don't.
Some lenders allow combined documentation. We shop across 200+ wholesale lenders to find programs that accept hybrid income verification.
Most non-QM lenders want at least a 620 score. Stronger credit gets you better pricing on either program.
Expect 10-20% down on most non-QM programs. Higher down payments can offset risk and improve your rate.
Property type matters. Some non-QM lenders restrict condo and mixed-use financing — we check program guidelines before you apply.
1099 loans typically have simpler underwriting. Bank statement loans require more document review and can take longer to process.
For bank statement loans, no — deposits are the measure. For 1099 loans, some lenders still pull returns to cross-reference reported income.