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in Jackson, CA
Both 1099 loans and bank statement loans help self-employed borrowers in Jackson qualify without W-2s. The difference is how you prove income—tax forms versus deposits.
If you write off most of your earnings, one path works better. If you show strong deposits but lighter 1099 documentation, the other wins.
Most Jackson self-employed borrowers fit one program cleanly. Choosing wrong means a delayed close or denial after you've already made an offer.
1099 loans use your 1099 forms to calculate qualifying income. Lenders average your 1099 earnings over 12-24 months, then apply standard debt-to-income ratios.
This works when you receive consistent 1099s and don't write off 80% of your income. You need organized contractor documentation showing stable client relationships.
Rates typically run 1-2% above conventional. Down payments start at 10-15%, with better terms at 20% down for Jackson properties.
Bank statement loans analyze 12-24 months of business or personal bank deposits. Lenders calculate income by averaging deposits, then apply an expense factor—typically 25-50%.
This works for borrowers who show strong cash flow but write off most taxable income. It also fits business owners who mix personal and business expenses.
Rates run similar to 1099 loans, sometimes slightly higher. Expect 10-20% down depending on credit score and deposit consistency in your Jackson purchase.
1099 loans demand clean contractor paperwork. Bank statement loans need consistent deposits without huge monthly swings.
Bank statement programs count gross deposits, which helps if you write off expenses. 1099 programs use net reported income, which hurts heavy write-off borrowers.
Credit requirements match closely—both want 620+ for best terms. The real split is documentation style and how aggressively you reduce taxable income.
Choose 1099 loans if you report most of your income and receive organized 1099-MISC or 1099-NEC forms. This path offers cleaner underwriting when your tax picture looks strong.
Pick bank statement loans if you write off 60%+ of revenue or run cash through a business account. This works for Jackson contractors, shop owners, or gig workers with messy 1099 situations.
If you have both clean 1099s and strong deposits, run both options. Rates and terms vary by lender—what prices better depends on your specific numbers.
No. Lenders pick one income calculation method per file. You choose the path that shows higher qualifying income based on your documentation.
Yes. Both programs allow investment property purchases with higher down payments—typically 20-25% down and slightly higher rates.
1099 loans often close quicker because underwriters verify forms faster than analyzing 24 months of deposits. Expect 21-30 days either way.
Bank statement loans work better. Lenders average recent deposits rather than focusing on year-over-year 1099 declines that trigger income reduction calculations.
Usually not. 1099 loans use the forms themselves. Bank statement loans rely on deposits, though some lenders request a CPA explanation for large transactions.