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in Susanville, CA
Self-employed borrowers in Susanville often hit a wall with conventional loans. Two non-QM options cut through that: 1099 loans and bank statement loans.
Both skip tax returns as income proof. But they work differently, and the wrong choice can cost you the deal.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms to verify income — not your tax returns.
This matters if your write-offs tank your taxable income. Your gross 1099 earnings do the heavy lifting here.
Bank statement loans use 12 to 24 months of deposits to calculate your income. No W-2, no tax return required.
This works well for business owners whose cash flow tells a stronger story than their Schedule C.
The core difference is how income gets calculated. 1099 loans use what clients paid you. Bank statement loans use what hit your account.
Bank statement loans cover more borrower types. If you have multiple income streams or own a business, they give lenders more to work with.
If you're a contractor with clean 1099s and one or two clients, the 1099 loan is simpler. Fewer documents, cleaner paper trail.
If your income comes from multiple sources or a business with variable deposits, go bank statement. It gives lenders a fuller picture of your cash flow.
Some lenders allow it, but most programs pick one method. A broker can find lenders that blend both for stronger files.
Yes. Non-QM loans carry higher rates due to added lender risk. Rates vary by borrower profile and market conditions.
Most 1099 and bank statement lenders want 10-20% down. Stronger credit or reserves can sometimes lower that threshold.
Most non-QM lenders want at least a 620. Better scores get better pricing on both programs.
Yes. Non-QM lenders operate statewide in California. Rural Lassen County properties are eligible on most programs.
Most lenders want at least two years of self-employment. Some will consider one year with strong compensating factors.