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in Livermore, CA
Both loans serve self-employed borrowers in Livermore. Neither uses W-2s or tax returns to verify income.
The difference is how your income gets documented. That one detail changes which loan fits your situation.
1099 loans are built for independent contractors and freelancers. Your 1099 forms replace the tax return in the underwriting file.
Lenders typically want 1-2 years of 1099s. This works best if your gross 1099 income is high and your write-offs are heavy.
Bank statement loans use 12 or 24 months of deposits to calculate income. Lenders apply an expense ratio — typically 50% for sole proprietors.
This works for any self-employed borrower. You don't need 1099 clients — just consistent, provable deposits.
A 1099 loan qualifies you on gross contract income. A bank statement loan qualifies you on net deposits after an expense ratio is applied.
If you have large cash deposits from mixed sources, bank statements may complicate your file. Pure 1099 contractors usually have a cleaner paper trail.
If all your income is from 1099 clients and your tax returns show low net income due to deductions, the 1099 loan is the stronger move.
If you're a business owner with multiple income streams depositing into one account, bank statements usually tell a better income story.
Some lenders allow hybrid documentation. Your broker picks the method that produces the highest qualifying income.
Most non-QM lenders in this category want 10-20% down. Stronger credit profiles may qualify at the lower end.
Most lenders require at least 620-640. Better scores unlock lower rates on both products.
Yes. SRK CAPITAL works with wholesale lenders that offer both programs throughout Alameda County.
Rates are similar for both since both are non-QM. Your credit score and down payment drive the difference. Rates vary by borrower profile and market conditions.
Expect 21-35 days. Having your bank statements or 1099s organized upfront cuts that timeline significantly.