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in Hanford, CA
Most Hanford buyers with self-employment income get turned away by conventional lenders. These two non-QM loans exist specifically to fix that problem.
Both skip the W-2 requirement. But they verify your income differently — and that difference determines which one you qualify for.
1099 loans are built for independent contractors and freelancers. Your 1099 forms replace the tax returns a conventional lender would demand.
Lenders typically use 12 to 24 months of 1099s to calculate income. This works well if your gross earnings are strong but your Schedule C deductions kill your taxable income.
Bank statement loans use 12 to 24 months of deposits to prove income. Lenders apply an expense ratio to your deposits to arrive at qualifying income.
This works for any self-employed borrower — not just 1099 earners. Business owners, sole proprietors, and cash-heavy operators all use this path.
The biggest split is income source. 1099 loans need documented contract income. Bank statement loans need consistent deposit history — regardless of how that income was earned.
Bank statement loans often apply an expense ratio, typically 50–75% of deposits, to set qualifying income. 1099 loans can use a higher percentage of gross earnings shown on the forms.
If you get paid by clients who issue 1099s and your gross income is strong, start with a 1099 loan. It's a cleaner paper trail and often qualifies more income.
If your income comes from multiple sources, a business with mixed cash flow, or doesn't always generate 1099s, bank statements give you more flexibility. Talk to us — we shop both across 200+ wholesale lenders.
Some lenders allow it. Most require you to pick one method. We know which wholesale lenders offer hybrid options.
Neither is consistently cheaper. Rates depend on credit, down payment, and the lender. Rates vary by borrower profile and market conditions.
Most non-QM lenders in this category want 10–20% down. Stronger credit can reduce that requirement depending on the lender.
Most lenders set a floor around 620–640 for both programs. Higher scores open better rate tiers.
Yes. Both programs cover single-family homes and small multi-unit properties common across Kings County.
Non-QM loans typically close in 21–30 days. Gathering 12–24 months of documents upfront keeps the timeline tight.