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in Eureka, CA
Eureka has a strong base of independent workers — contractors, fishermen, tradespeople, consultants. Most can't qualify with a W-2. These two loans exist for exactly that situation.
Both are non-QM loans. That means lenders look past tax returns and verify income differently. The right choice depends on how your income actually flows.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms — usually one to two years — to calculate qualifying income.
This works well if your 1099 income is consistent and your forms reflect what you actually earn. No bank statements required. No business returns.
Bank statement loans use 12 to 24 months of deposits to verify income. Lenders apply an expense ratio to calculate your net qualifying income.
This is the go-to for business owners whose tax returns show write-offs that kill their qualifying income. Deposits tell the real story.
1099 loans use forms issued to you by clients. Bank statement loans use deposit history from your accounts. Different income sources call for different documentation.
Rates vary by borrower profile and market conditions. Both loan types carry non-QM pricing — typically higher than conventional. Bank statement loans sometimes price slightly higher due to added lender risk.
If you're a contractor or freelancer with clean 1099 forms and limited write-offs, a 1099 loan is the simpler path. Less documentation, faster process.
If you run a business in Eureka and write off significant expenses, bank statements will show lenders a truer picture of your income. That's usually the stronger play.
Some lenders allow combined documentation. A broker can identify which approach — or combination — produces the highest qualifying income for your profile.
Most non-QM lenders require at least 10% down, sometimes more. Your credit score and loan size will influence the exact requirement.
Most lenders require 12 months minimum. Some require 24. More history generally gives lenders more confidence in your income stability.
Most non-QM lenders want at least a 620. Stronger scores above 680 will get you better pricing on either program.
Yes, both programs can be used for investment properties. Expect stricter terms and a larger down payment than for a primary residence.
Both are non-QM products, so you won't find them at most retail banks. A wholesale broker with access to non-QM lenders is your best path to either one.