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in Angels Camp, CA
Both 1099 loans and bank statement loans help self-employed borrowers in Angels Camp qualify without W-2s. The difference is how each lender verifies your income.
1099 loans use your tax forms directly. Bank statement loans read your deposits over 12 or 24 months. Your choice depends on how you document income and what deductions you take.
1099 loans approve you based on the gross income shown on your 1099 forms. Lenders typically average one or two years of 1099 income to determine what you qualify for.
This works best if you don't write off major business expenses. If your 1099s show strong gross income that matches your actual cash flow, underwriting is straightforward.
Expect credit score minimums around 620 to 640. You'll need at least one year of 1099 history in the same line of work, though two years strengthens your file.
Bank statement loans calculate income from your business or personal account deposits. Lenders review 12 or 24 months of statements and apply an expense factor, usually 25% to 50%.
This option helps if you write off heavy expenses that lower your taxable income. The underwriter sees your gross deposits before deductions hit your tax return.
You'll need consistent deposits over the review period. Credit minimums run similar to 1099 loans—usually 620 or higher—and you must show self-employment for at least two years.
The main split is documentation. 1099 loans pull numbers straight from your tax forms. Bank statement loans ignore your tax return and look only at cash flow through your accounts.
If you show $120,000 gross on your 1099s but write off $40,000 in expenses, a 1099 loan still qualifies you on the full $120,000. A bank statement loan would calculate from your deposits and apply a flat expense factor.
Bank statement loans give you more flexibility if your tax return doesn't reflect real income. 1099 loans are faster to underwrite because the income figure is already documented on a tax form.
Choose a 1099 loan if your gross income on tax forms is strong and you don't write off most of your revenue. This path is cleaner when your 1099s accurately reflect what you earn.
Go with bank statement loans if you maximize deductions and your taxable income looks low. Lenders will calculate from deposits, giving you a higher qualifying income than your tax return shows.
Angels Camp borrowers often mix income types—1099 work plus cash deposits. In that case, bank statement loans capture everything flowing through your accounts, while 1099 loans only count documented contractor income.
Some lenders allow hybrid underwriting, but most require you to pick one method. Mixing documentation can slow approval and complicate income calculations.
Rates vary by borrower profile and market conditions. Both are non-QM loans, so pricing is similar—your credit score and down payment matter more than the income doc type.
Bank statement loans almost always require two years. Some 1099 programs accept one year if your income is strong and consistent.
Bank statement loans handle seasonal cash flow better because they average deposits over 12 or 24 months. 1099 loans may flag large year-to-year swings.
Yes. Most lenders accept business statements if your income flows through a business account. Personal statements work too if that's where you deposit earnings.