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in Larkspur, CA
Larkspur attracts a lot of self-employed buyers. Consultants, freelancers, and business owners often can't qualify with a W-2 — and that's where non-QM loans come in.
Both 1099 loans and bank statement loans skip traditional income verification. But they work differently, and the wrong choice costs you.
A 1099 loan uses your 1099 forms to document income. Lenders typically average one to two years of 1099 earnings to calculate your qualifying number.
This works well for independent contractors with consistent clients. If your 1099s show strong gross income, you avoid the write-off problem that kills most self-employed applications.
Bank statement loans use 12 to 24 months of deposits to calculate income. Lenders apply an expense ratio — usually 50% — to determine net qualifying income.
This is the go-to for business owners who run expenses through their accounts. It captures cash flow that tax returns bury under deductions.
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 Larkspur.
Larkspur attracts a lot of self-employed buyers. Consultants, freelancers, and business owners often can't qualify with a W-2 — and that's where non-QM loans come in.
Both 1099 loans and bank statement loans skip traditional income verification. But they work differently, and the wrong choice costs you.
A 1099 loan uses your 1099 forms to document income. Lenders typically average one to two years of 1099 earnings to calculate your qualifying number.
The core difference is documentation. 1099 loans read your income forms. Bank statement loans read your actual cash flow.
If you have high 1099s and few deductions, a 1099 loan usually qualifies you at a higher income. If you run a business with heavy deposits, bank statements often win.
Pick a 1099 loan if you're a freelancer or contractor with clean 1099 forms and minimal write-offs. Your income reads strong on paper.
Pick a bank statement loan if you own a business with substantial monthly deposits. High deductions on your returns won't hold you back.
Some lenders allow a combined approach. A broker can shop that option across multiple wholesale lenders to find the best fit.
Yes. Non-QM loans carry higher rates than conventional financing. Rates vary by borrower profile and market conditions.
Most non-QM lenders require at least 10% down. Stronger credit or larger down payments can improve your rate.
Most lenders want at least a 620. Higher scores open better pricing on both 1099 and bank statement programs.
Timeline depends on how quickly you can provide documentation. Having 24 months of statements or 1099s ready speeds up underwriting.
Yes. Many non-QM lenders offer loan amounts well above conforming limits, which matters in high-cost areas like Marin.