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in Corte Madera, CA
Most Marin County lenders are built for W-2 borrowers. If you earn 1099 income or run your own business, two non-QM options actually fit your situation.
Both 1099 loans and bank statement loans skip tax returns as the primary income proof. The right choice depends on how your income flows and how you file.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms — typically one to two years — to calculate qualifying income.
This works best when your 1099s show strong gross income. You don't need to average out business expenses the way you would with bank statements.
Bank statement loans use 12 to 24 months of deposits to verify income. Lenders apply an expense ratio to your deposits to determine qualifying income.
This is the go-to for self-employed borrowers who write off a lot. Your tax return might show low net income, but your deposits tell a different story.
Local decision guide
Use this comparison to weigh 1099 Loans and Bank Statement Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Corte Madera.
Most Marin County lenders are built for W-2 borrowers. If you earn 1099 income or run your own business, two non-QM options actually fit your situation.
Both 1099 loans and bank statement loans skip tax returns as the primary income proof. The right choice depends on how your income flows and how you file.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms — typically one to two years — to calculate qualifying income.
The core difference is the income document. 1099 loans read your gross contractor earnings directly. Bank statement loans calculate income from what actually hits your accounts.
Bank statement loans tend to fit a broader range of self-employed profiles. 1099 loans are narrower — they work cleanest when you have no business entity complicating the picture.
If you freelance or contract without a formal business entity, start with a 1099 loan. Fewer documents, cleaner income calculation.
If you own an LLC or S-corp and take deductions aggressively, bank statement loans usually produce a higher qualifying income. That matters a lot at Corte Madera price points.
Some lenders allow combined documentation. A broker can identify which lenders offer hybrid options for your specific income profile.
Yes — non-QM loans carry higher rates than conventional financing. Rates vary by borrower profile and market conditions.
Most non-QM lenders want at least a 620 score. Stronger scores get better pricing on both 1099 and bank statement programs.
Loan limits vary by lender and your calculated income. Many non-QM lenders go well above conforming limits for qualified borrowers.
1099 loans typically require fewer documents, so they can move faster. Bank statement loans take longer to underwrite due to deposit analysis.
Most lenders require at least two years of self-employment. Some non-QM programs allow one year with strong compensating factors.