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in Dos Palos, CA
Self-employed borrowers in Dos Palos face a choice: prove income with 1099s or bank statements. Both are non-QM loans designed for people who don't get W-2s, but they verify income in fundamentally different ways.
The right option depends on how you receive payments and what your tax returns show. Some borrowers qualify for one but not the other based purely on their income documentation.
1099 loans use your 1099 forms to verify income. Lenders typically want two years of 1099s and tax returns. You need consistent 1099 income from clients or platforms to qualify.
This works well for independent contractors, consultants, and gig workers with clear 1099 documentation. Lenders calculate your qualifying income from what you report on your tax returns, so heavy write-offs reduce what you can borrow.
Bank statement loans use 12 to 24 months of personal or business bank deposits to verify income. Lenders analyze your deposits and apply an expense ratio to estimate your qualifying income.
This approach works for business owners whose income doesn't show cleanly on 1099s. It bypasses tax returns entirely, which helps if you write off significant expenses that reduce your taxable income.
The core split is documentation type. 1099 loans rely on formal tax documents. Bank statement loans rely on actual cash flow through your accounts.
Bank statement programs typically qualify you for more if you take big write-offs. 1099 programs work better if your tax returns already show strong income. Rates vary by borrower profile and market conditions, but both programs typically carry higher rates than conventional loans.
Go with 1099 loans if you receive most income via 1099 forms and your tax returns reflect your true earning power. Go with bank statement loans if you're a business owner with heavy deductions or irregular 1099 documentation.
Many Dos Palos borrowers in agriculture services, trucking, or consulting have clean 1099 income. Business owners in retail or services often benefit more from bank statements because their deposits tell a stronger story than their tax returns.
No, lenders use one method or the other. Most programs require you to choose the documentation type that best matches your income structure.
Rates are similar across both programs and depend more on your credit, down payment, and property type than the documentation method.
Yes. Both 1099 and bank statement loans typically require at least two years of self-employment history in the same field.
Bank statement loans handle this better. They capture all income sources in your deposits without requiring separate 1099 verification.
Yes, most lenders accept business bank statements. Some prefer business accounts for LLC owners and sole proprietors with dedicated business banking.