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in Mill Valley, CA
Mill Valley attracts consultants, creatives, and contractors. Most of them can't qualify with a W-2. That's where non-QM loans come in.
Two programs dominate for self-employed borrowers here: 1099 loans and bank statement loans. The right one depends on how you get paid.
A 1099 loan uses your 1099 forms to verify income. Lenders typically look at one to two years of 1099s from a single or multiple clients.
This works best if your 1099 income is consistent and your write-offs are minimal. High deductions on tax returns won't tank you here.
Bank statement loans use 12 or 24 months of deposits to calculate your income. Lenders apply an expense ratio — typically 50% — to get your net figure.
This fits borrowers whose cash flow tells a better story than their 1099s. Business owners with multiple revenue streams often land here.
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 Mill Valley.
Mill Valley attracts consultants, creatives, and contractors. Most of them can't qualify with a W-2. That's where non-QM loans come in.
Two programs dominate for self-employed borrowers here: 1099 loans and bank statement loans. The right one depends on how you get paid.
A 1099 loan uses your 1099 forms to verify income. Lenders typically look at one to two years of 1099s from a single or multiple clients.
The core difference is what counts as income. 1099 loans use forms. Bank statement loans use deposits. Neither touches your tax return.
Bank statement loans usually allow larger loan amounts because deposit income can run higher than 1099 totals. In Marin, that matters.
If you're a freelancer or independent contractor with clean 1099s and few deductions, the 1099 loan is simpler and faster to document.
If you run a business, take distributions, or have multiple income sources, bank statements usually paint a stronger picture for lenders.
Some lenders allow blended documentation. We check which combo produces the highest qualifying income for your file.
Most non-QM lenders want at least a 660 for competitive pricing. Some go down to 620 with higher rates. Rates vary by borrower profile and market conditions.
Expect a minimum of 10% down. Many lenders require 20% to 25% for the best rates on non-QM products.
Yes. Both programs can go well above conventional limits. Marin prices often push buyers into jumbo non-QM territory.
1099 loans typically have simpler income docs. Bank statement reviews take more underwriting time, especially with 24-month files.
Some non-QM products include a prepayment penalty for the first 1-3 years. Always confirm this before you sign.