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in San Leandro, CA
Most San Leandro buyers with self-employed income hit a wall with conventional loans. These two non-QM options fix that problem.
Both skip the W-2 requirement. But they qualify your income very differently — and that gap matters for approval.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms — not tax returns — to calculate income.
This matters if your tax write-offs shrink your net income on paper. Your gross 1099 earnings tell a stronger story.
Bank statement loans use 12 to 24 months of deposits to prove what you actually earn. No 1099s required.
This works well for business owners who mix personal and business accounts. Lenders apply an expense ratio to deposits.
The core difference is documentation. 1099 loans need your contractor income forms. Bank statement loans need deposit history.
If you have clean 1099 records but messy bank accounts, go 1099. If your deposits are strong but 1099s are inconsistent, bank statements win.
Freelancers with steady clients and clean 1099 records usually do better with a 1099 loan. Less documentation, cleaner file.
Business owners running payroll or mixing accounts lean toward bank statements. Talk to us — we'll run both scenarios before you pick.
Some lenders allow combined documentation. Most non-QM programs require you to pick one qualifying method.
Most lenders require two years of 1099s. Some accept one year if your income is consistent and well-documented.
Yes. Lenders typically apply a 10-50% expense ratio to deposits. Your qualifying income ends up lower than raw deposits suggest.
Non-QM rates run higher than conventional. Rates vary by borrower profile and market conditions.
Most non-QM lenders want at least a 620. Stronger scores get better pricing on both programs.
Yes, non-QM programs typically allow 2-4 unit purchases. Down payment requirements are usually higher for investment properties.