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in Calexico, CA
Most Calexico buyers with self-employment income hit a wall with conventional loans. Two non-QM options exist for them: 1099 loans and bank statement loans.
Both skip W-2s and tax returns as the income source. But they qualify income very differently — and that gap matters for approval.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms — typically one to two years — to calculate income.
This works well if your 1099 income is consistent and your write-offs are moderate. Heavy deductions won't hurt you here the way they do on a tax return.
Bank statement loans use 12 to 24 months of deposits to prove income. Lenders apply an expense ratio to your gross deposits to arrive at qualifying income.
This is the go-to for business owners who run revenue through a business account. If your books show strong cash flow, this loan can work even with a low taxable income.
Local decision guide
Use this comparison to weigh 1099 Loans and Bank Statement Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Calexico.
Most Calexico buyers with self-employment income hit a wall with conventional loans. Two non-QM options exist for them: 1099 loans and bank statement loans.
Both skip W-2s and tax returns as the income source. But they qualify income very differently — and that gap matters for approval.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms — typically one to two years — to calculate income.
1099 loans calculate income from your earnings documents. Bank statement loans calculate it from your actual cash flow. Those two numbers are often very different.
Bank statement loans can serve a broader range of self-employed borrowers. 1099 loans are narrower — they only fit borrowers who receive 1099s from clients, not business owners with mixed income.
If you're a gig worker, truck driver, or contractor paid by 1099 clients, the 1099 loan is cleaner. Fewer documents, straightforward income calculation.
If you own a business, mix client payments with business revenue, or deposit income irregularly, bank statements give lenders a fuller picture. That usually means a stronger approval.
Some lenders allow hybrid documentation. A broker can shop both options across wholesale lenders to find the strongest qualifying scenario for you.
Non-QM loans typically require more down than conventional. Expect 10% to 20% down depending on the lender and your credit profile.
Most non-QM lenders want at least a 620. Stronger scores above 680 open up better pricing on both loan types.
Yes. Both are non-QM products available statewide in California. Calexico borrowers qualify just like any other CA county.
Non-QM loans often take 30 to 45 days. Having your documents ready upfront cuts that timeline significantly.
On a 1099 loan, write-offs have less impact since income comes from the 1099 form. Bank statement loans use deposits, so deductions on your tax return don't reduce qualifying income.