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in Shafter, CA
Most Shafter buyers who work for themselves hit a wall with conventional loans. W-2 income is easy to verify — 1099 and self-employment income is not.
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. Your 1099 forms replace the tax returns and pay stubs lenders normally demand.
Lenders typically use 1 to 2 years of 1099s to calculate qualifying income. This works well if your gross earnings are strong and your write-offs are not eating your reported income.
Bank statement loans use 12 to 24 months of deposits to establish income. Tax returns are not part of the equation.
This matters if you write off significant business expenses. Your tax return might show low income — your bank statements show what actually flows in.
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 Shafter.
Most Shafter buyers who work for themselves hit a wall with conventional loans. W-2 income is easy to verify — 1099 and self-employment income is not.
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. Your 1099 forms replace the tax returns and pay stubs lenders normally demand.
The core difference is documentation. 1099 loans rely on income forms. Bank statement loans rely on deposit history.
Rates on both are higher than conventional loans — that is the trade-off for flexible qualification. Rates vary by borrower profile and market conditions.
If you receive 1099s from clients and your reported income holds up, the 1099 loan is simpler. Fewer documents, cleaner paper trail.
If you run a business with heavy deductions, bank statements tell a better story. Most of our self-employed Shafter borrowers end up here for exactly that reason.
Some lenders allow blended documentation. We can shop that option across our lender network if one method alone falls short.
Non-QM loans typically require more down than conventional. Expect 10–20% depending on credit score and lender guidelines.
Most lenders want at least 620–640. Stronger scores open better rates and lower down payment options.
Yes. We work with wholesale lenders who actively fund non-QM loans throughout Kern County, including Shafter.
Most lenders require 12 months minimum. Many prefer 24 months for a cleaner income picture.
1099 loans often involve less document review. Bank statement loans take longer when lenders must average many months of deposits.