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in Glendale, CA
Glendale's self-employed borrowers have two strong non-QM paths. Both skip tax returns, but they verify income differently.
Your choice depends on how you take income from your business. Most 1099 contractors prefer one route, while business owners with complex write-offs choose the other.
1099 loans use your Form 1099s to verify income. Lenders add up your 1099 forms from the past two years and average them.
This works best if you're a contractor getting clean 1099 income. You don't need to show bank statements or explain business expenses.
Rates typically run 1-2% above conventional. Credit score minimums start at 620, but better rates kick in above 680.
Bank statement loans analyze 12-24 months of business or personal deposits. Underwriters calculate average monthly income from your statements.
This route works when you have significant business write-offs or take irregular draws. Lenders apply expense ratios to account for business costs.
You'll need consistent deposits and clean banking history. Rates start similar to 1099 loans but vary based on documentation strength.
The core split is verification method. 1099 loans need your tax forms. Bank statement loans need your deposit records.
Income calculation differs significantly. 1099 programs use gross receipts from forms. Bank statement programs apply 50-75% expense ratios to deposits.
Documentation burden tilts toward bank statements. You'll provide 12-24 months of statements versus just two years of 1099s.
Choose 1099 loans if you're a contractor receiving most income on 1099 forms. This works for consultants, freelancers, and gig workers with clean documentation.
Pick bank statement loans if you own a business with heavy write-offs or take irregular distributions. This fits Glendale entrepreneurs who funnel income through LLCs or S-corps.
Most borrowers with both 1099 and business accounts do better with bank statements. You can show total cash flow instead of just contracted income.
No, lenders use one method per application. Choose whichever shows stronger qualifying income for your situation.
Rates vary by borrower profile and market conditions. Both typically price within 0.25% of each other with similar credit and down payment.
Neither program requires tax returns for income verification. Lenders may request returns for identity confirmation only.
Most lenders want 15-20% down for both programs. Stronger credit and income documentation can sometimes reduce this to 10%.
1099 loans typically close faster since documentation is simpler. Bank statement loans need 2-3 extra days for deposit analysis.