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in Gridley, CA
Self-employed borrowers in Gridley get rejected by conventional lenders every day. Not because they can't afford the payment — because their tax returns don't tell the whole story.
Two non-QM loan types solve this problem differently. Knowing which one fits your income structure saves time and gets you to the closing table faster.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms — not your tax returns — to calculate qualifying income.
This matters because most self-employed borrowers write off expenses aggressively. Your taxable income looks low. Your 1099 earnings tell a different story.
Bank statement loans use 12 to 24 months of deposits to verify income. Lenders look at what actually hits your account, not what the IRS sees.
This works well for business owners with mixed income streams. It captures revenue that 1099s might not fully reflect.
The core difference is documentation. 1099 loans need your contractor income forms. Bank statement loans need your deposit history. Neither touches your tax returns.
Bank statement loans tend to fit business owners with variable revenue. 1099 loans work cleanest when your income comes from a handful of clients on 1099s.
If you're a contractor billing clients on 1099s with consistent earnings, the 1099 loan is the cleaner path. Fewer documents, straightforward qualification.
If you run a business with multiple income sources and healthy bank deposits, go bank statement. Two years of strong deposits can qualify you for more than your 1099s show.
Some lenders accept a combination, but most programs require one method. A broker can identify which lenders allow blended documentation.
Non-QM lenders often start at 620, but stronger credit scores get better rates. Requirements vary by lender and program.
Loan limits depend on your average monthly deposits and the lender's guidelines. There's no universal cap — it varies by program.
1099 loans typically involve fewer documents. Bank statement loans require more review time since lenders analyze months of deposits.
Both loan types work for purchases and refinances. Non-QM refinances follow the same income documentation rules as purchases.
Most lenders want at least one to two years of self-employment history. Some programs allow less with compensating factors like strong reserves.