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in Lakewood, CA
Self-employed borrowers in Lakewood face a choice between two non-QM paths. Both programs ignore tax returns, but they verify income differently.
Your decision hinges on how clean your 1099s look versus your bank deposits. Most brokers push one product—we run both to find your lowest rate.
1099 loans use your annual contractor statements to calculate income. Lenders take your gross 1099 earnings, subtract an expense ratio, and that's your qualifying number.
This works best when your 1099s show strong, steady income. Most lenders use a 25% expense factor, so $200K in 1099 income qualifies as $150K.
You need two years of 1099s from the same industry. Credit typically starts at 620, and most deals require 15-20% down in Lakewood.
Bank statement loans analyze 12 to 24 months of business or personal deposits. Lenders average your monthly deposits and apply an expense ratio to estimate income.
This path shines when your bank deposits exceed your 1099 totals. Common if you take cash payments or run expenses through your account that aren't true costs.
You provide 12 or 24 months of statements—longer terms sometimes get better pricing. Credit minimums match 1099 loans at 620, with similar down payment expectations.
The core split is documentation simplicity versus income capture. 1099 loans are cleaner—just pull your forms and you're done. Bank statements require organizing months of transactions.
Income calculation flips the advantage. If you write off heavy expenses, bank statements usually show higher qualifying income. If your 1099s are clean, that route runs faster.
Rate difference is minimal—both are non-QM products priced similarly. Your actual rate depends on credit, down payment, and which program shows stronger income for your file.
Run the numbers on both before choosing. If your 1099 gross times 0.75 beats your average monthly deposits times 12, use 1099s. Otherwise, go bank statements.
Lakewood buyers with multiple income streams lean toward bank statements. Solo contractors with clean 1099s close faster with the simpler documentation path.
We underwrite both options upfront. Most borrowers qualify under one program with better terms—rarely is it a true toss-up.
No. Lenders require you to choose one income documentation method. We run calculations for both and pick the stronger option.
Most lenders accept personal or business accounts. Personal statements work fine if your deposits clearly show self-employed income.
1099 loans typically close 5-7 days quicker. Bank statement underwriting takes longer due to transaction review and deposit sourcing.
Yes, but it restarts underwriting. Better to run both income calculations during pre-approval to avoid delays later.
Both programs approve condos, but some lenders restrict non-warrantable units. We confirm property eligibility before you make an offer.