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in Fairfax, CA
Fairfax attracts a lot of self-employed buyers. Consultants, creatives, and contractors all run into the same wall: traditional lenders hate irregular income.
Two non-QM loan types solve this problem differently. Knowing which one fits your income structure can save you weeks of frustration.
A 1099 loan qualifies you using your 1099 forms — typically one or two years. If you're a contractor or freelancer with clean 1099s, this is a straightforward path.
Lenders use your 1099 income directly. No bank statements, no P&L. The documentation is simpler than most self-employed borrowers expect.
Bank statement loans use 12 or 24 months of deposits to calculate income. Lenders typically apply an expense ratio to your deposits to arrive at a qualifying number.
This loan fits business owners who write off heavy expenses on taxes. Your tax return may show little income — your bank account tells the real 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 Fairfax.
Fairfax attracts a lot of self-employed buyers. Consultants, creatives, and contractors all run into the same wall: traditional lenders hate irregular income.
Two non-QM loan types solve this problem differently. Knowing which one fits your income structure can save you weeks of frustration.
A 1099 loan qualifies you using your 1099 forms — typically one or two years. If you're a contractor or freelancer with clean 1099s, this is a straightforward path.
The core difference is what document proves your income. 1099 loans use your earnings forms. Bank statement loans use your actual cash flow.
Bank statement loans require more documentation but handle complex income better. 1099 loans are cleaner when your income source is simple and consistent.
Pick a 1099 loan if most of your income comes from one or two clients and your 1099s are consistent year to year. It's a faster, cleaner approval path.
Choose a bank statement loan if you own a business, have multiple income streams, or your tax returns significantly understate what you actually earn.
Some lenders allow blended documentation. Ask your broker which option produces the higher qualifying income for your profile.
Both are non-QM loans with high loan limits. Marin County pricing is manageable with strong enough verified income.
Yes. Non-QM loans carry a rate premium over conventional financing. Rates vary by borrower profile and market conditions.
Most non-QM lenders require 10% to 20% down. A stronger credit score and larger down payment usually improves your rate.
Most lenders want at least a 620 to 660. Higher scores open up better programs and pricing at the wholesale level.
1099 loans often close faster due to simpler documentation. Bank statement loans require more file review and lender processing time.