Loading
in San Fernando, CA
San Fernando's self-employed borrowers have two strong non-QM options. Both skip tax returns, but they verify income differently.
1099 loans work for contractors with clean paper trails. Bank statement loans work for everyone else with cash flow.
Your documentation determines which path closes faster. Most borrowers qualify for one but not both.
1099 loans use your 1099 forms to prove income. Lenders calculate your qualifying income from the last two years of forms.
You need consistent 1099 income from the same clients. No complicated self-employment deductions to explain.
This works well for contractors who get clean 1099s. Think consultants, healthcare workers, or tech freelancers with steady clients.
Bank statement loans analyze 12-24 months of business or personal bank deposits. Lenders average your monthly income and use a percentage to qualify you.
This works for any self-employed borrower with steady deposits. Cash businesses, gig workers, or anyone who writes off most income.
You can use business statements, personal statements, or both. Lenders typically count 50% of deposits as qualifying income.
1099 loans count your full 1099 income. Bank statement loans only count 50% of deposits because they assume business expenses.
1099 loans typically offer slightly better rates. You're providing cleaner documentation with less lender risk.
Bank statement loans accept nearly any income source. 1099 loans require actual 1099 forms from clients or platforms.
Approval speed is similar for both. The real difference is which documentation you can actually provide.
Choose 1099 loans if you receive actual 1099 forms. Your clients report your income cleanly and you don't write off everything.
Choose bank statement loans if you run a cash business, drive for apps, or take heavy tax deductions. Also your only option without 1099 forms.
Some San Fernando borrowers qualify for both. Go with 1099 loans in that case — you'll get better pricing.
Neither option cares about your tax returns. Pick based on what documentation you can gather in two days.
Yes, but it restarts underwriting. Choose the right option upfront based on your actual documentation.
Both typically need 10-20% down depending on credit and property type. Down payment requirements are nearly identical.
1099 loans usually price 0.25-0.50% better than bank statement loans. Rates vary by borrower profile and market conditions.
Most lenders require you to pick one income verification method. You can't mix documentation types on the same loan.
1099 loans need two years of forms. Bank statement loans need 12-24 months of statements depending on the lender.