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in San Rafael, CA
San Rafael is expensive. Most lenders want W-2s. That locks out a lot of self-employed buyers who actually earn great money.
Two non-QM loans fix this: 1099 loans and bank statement loans. Both skip tax returns. They qualify you differently.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms — not tax returns — to verify income.
This matters because most self-employed borrowers write off expenses. That lowers taxable income but kills a conventional approval.
Bank statement loans use 12 to 24 months of deposits to calculate your income. Lenders apply an expense ratio to get a net figure.
This works well for business owners whose 1099s don't capture the full picture. If money flows through your accounts, this loan sees it.
The core difference is how income gets calculated. 1099 loans use your gross 1099 earnings. Bank statement loans use your actual deposits.
If your 1099s are high but deposits are inconsistent, go 1099. If you run a business with steady cash flow, bank statements often show more income.
Freelancers and contractors with clean 1099 history usually do better with a 1099 loan. The math is straightforward and lenders like the paper trail.
Business owners with multiple income streams often qualify for more using bank statements. More deposits usually means more qualifying income.
Some lenders allow blended income documentation. A broker can identify which lenders accept combined verification for your specific file.
Yes. Non-QM lenders often allow higher loan amounts than conventional programs. Jumbo non-QM options exist for high-value purchases.
Most non-QM lenders want at least a 620 score. Better scores get better rates — rates vary by borrower profile and market conditions.
Expect a minimum of 10% down on most non-QM programs. Some lenders require 20% or more depending on loan size and credit profile.
Yes, typically. Non-QM pricing reflects added lender risk. Rates vary by borrower profile and market conditions.
Neither has a built-in speed advantage. Timeline depends on documentation readiness and the specific lender — preparation matters most.