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in Fresno, CA
Fresno's self-employed borrowers have two solid non-QM options for mortgage approval. Both skip tax returns, but they verify income differently.
1099 loans work for contractors with clean 1099 forms. Bank statement loans work when your business deposits tell a better story than your tax filings.
Most Fresno brokers push one or the other. We look at both and match you to whichever gets you approved at the best terms.
1099 loans use your 1099-MISC or 1099-NEC forms to prove income. Lenders average 12 to 24 months of 1099 income and qualify you on that number.
You need consistent 1099 income from the same clients or industry. If your forms show $120,000 over two years, lenders qualify you on $60,000 annual income.
This works well for contractors, consultants, and freelancers who don't write off major expenses. Your 1099 income should reflect what you actually take home.
Bank statement loans analyze 12 to 24 months of business or personal bank deposits. Lenders calculate your income from what actually hits your account.
They typically use 50% to 75% of your deposits as qualifying income. A landscaper depositing $15,000 monthly might qualify on $7,500 to $11,250 per month.
This route works when you write off equipment, vehicles, or materials. Your bank deposits show the real cash flow that tax returns hide.
1099 loans need formal contractor income documentation. Bank statement loans just need deposit history from your checking account.
The income calculation differs significantly. 1099s use reported gross income. Bank statements apply a percentage to total deposits.
Approval speed matters in Fresno's market. 1099 loans close faster because the income calculation is straightforward. Bank statement loans take longer due to deposit analysis.
Rate difference is minimal between the two. Both are non-QM products with similar risk profiles. Expect rates 0.5% to 1.5% above conventional loans.
Choose 1099 loans if your forms accurately reflect your take-home income. Consultants, IT contractors, and medical professionals fit this profile.
Pick bank statement loans if you run an equipment-heavy business. Contractors, landscapers, and restaurant owners often qualify for more this way.
We run both calculations before you apply. Sometimes the difference in qualifying income is $30,000 or more depending on your business structure.
Fresno property values make this choice important. The right program can mean the difference between qualifying for a $400,000 home versus $500,000.
No, lenders choose one income verification method per loan. We pick whichever shows higher qualifying income for your situation.
Both typically require 10% to 20% down. The down payment depends more on your credit score and property type than the income documentation method.
Yes, most lenders want 24 months in the same business or industry. Some accept 12 months with strong income and credit.
1099 loans typically close in 21 to 30 days. Bank statement loans take 30 to 45 days due to detailed deposit analysis.
Both require minimum 620 credit, but 680+ gets better rates. Your score affects pricing more than which documentation method you use.