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in Susanville, CA
Both 1099 loans and bank statement loans serve self-employed borrowers in Susanville who can't show traditional W-2 income. The right choice depends on how your business deposits hit your accounts and whether you take aggressive write-offs.
Most self-employed borrowers qualify for one or the other—rarely both equally. We see clear patterns in which option closes faster and at better rates based on your business structure.
1099 loans use your 1099 forms to verify income, making them ideal if you're a contractor who receives clean 1099-MISC or 1099-NEC forms. Lenders calculate your qualifying income by averaging two years of 1099 earnings with minimal adjustments.
This option works best when your business expenses stay low and your 1099s reflect most of your actual income. You'll need 10-20% down and credit scores typically above 620.
Bank statement loans analyze 12-24 months of personal or business bank deposits to calculate income. Lenders apply a percentage factor to your average monthly deposits—usually 50-75% to account for business expenses.
This program shines when you write off heavy expenses on your tax returns but maintain strong cash flow. It bypasses tax returns entirely, looking only at what hits your accounts.
The core split: 1099 loans rely on third-party income verification while bank statements show raw deposit activity. If your 1099s understate your income because you receive cash or mixed payment types, bank statements capture the full picture.
Processing time differs too. We close 1099 loans faster when the forms are clean—usually 25-30 days. Bank statement loans take 30-40 days because underwriters manually review every deposit line item.
Choose 1099 loans if you're a straightforward contractor—Uber driver, consultant, or freelancer with multiple 1099 clients and minimal expenses. You'll get faster approval and slightly better rates in most cases.
Pick bank statement loans if your business involves inventory, equipment purchases, or heavy deductions that slash your taxable income. This route also works if you receive income types that don't generate 1099 forms but show up as regular deposits.
Some lenders allow hybrid approaches, but most borrowers fit clearly into one program. We pick the method that shows your highest qualifying income.
1099 loans typically price 0.25-0.50% lower because the income verification is cleaner. Rates vary by borrower profile and market conditions.
Yes. Both programs require 24 months in the same line of work. We can sometimes blend one year W-2 with one year self-employed income.
Large one-time deposits get excluded. We calculate income from recurring deposit patterns only, so inconsistent months won't kill your approval.
Yes, but 24 months of statements typically qualify you for better rates. Shorter histories mean higher risk pricing from lenders.