Loading
in Corcoran, CA
Self-employed borrowers in Corcoran get turned away by conventional lenders daily. Both these loan types fix that problem — but they work differently.
Your income type determines which one fits. Knowing the difference saves you time and gets you to closing faster.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms — not tax returns — to calculate income.
This matters because self-employed borrowers often write off expenses heavily. Tax returns show low taxable income. Your 1099s show what you actually earned.
Bank statement loans skip tax returns entirely. Lenders look at 12 to 24 months of deposits to calculate your qualifying income.
This works for self-employed borrowers whose money flows through business or personal accounts. It catches income that 1099s might miss.
The income source is the real dividing line. 1099 loans need documented contractor payments. Bank statement loans need consistent deposits — regardless of income type.
Rates vary by borrower profile and market conditions. Both loan types typically price higher than conventional loans. Bank statement loans can run slightly higher due to added documentation flexibility.
If you're a contractor paid by clients who issue 1099s, start there. It's a cleaner income story and lenders underwrite it more straightforwardly.
If your income is mixed — or you run a business where money flows through accounts without clean 1099 documentation — bank statements give you more to work with.
Some lenders allow blended income documentation. Ask your broker which approach produces the strongest qualifying income for your file.
Yes. Both are available for purchases and refinances in Kings County. Non-QM products are not limited to high-cost areas.
Most non-QM lenders want a 620 minimum, though some go lower with compensating factors. Higher scores get better pricing.
Expect 10–20% down on most non-QM products. Lower down payments are possible but usually come with stricter credit requirements.
Less than on a conventional loan. Lenders use an expense ratio — not your tax return — to calculate net income from deposits.
Both have similar timelines when docs are ready. Having 12–24 months of clean statements or organized 1099s upfront speeds things up.