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in King City, CA
Most King City buyers with self-employed income get told no by conventional lenders. These two non-QM loans exist specifically for that situation.
Both skip W-2s and tax returns as the primary income proof. The difference is how they verify what you actually earn.
1099 loans are built for independent contractors and freelancers. Your 1099 forms replace tax returns as the income document.
Lenders look at your 1099 earnings directly — not your taxable income after deductions. That's a big deal if you write off a lot.
Bank statement loans work for any self-employed borrower — not just 1099 earners. Lenders average 12 to 24 months of deposits to establish income.
Business owners who mix income types often fit here better. If you have both 1099 and other revenue, bank statements capture the full picture.
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 King City.
Most King City buyers with self-employed income get told no by conventional lenders. These two non-QM loans exist specifically for that situation.
Both skip W-2s and tax returns as the primary income proof. The difference is how they verify what you actually earn.
1099 loans are built for independent contractors and freelancers. Your 1099 forms replace tax returns as the income document.
The core difference is the income document. 1099 loans use your forms. Bank statement loans use your actual deposits.
If your deposits run higher than your 1099 totals, bank statements win. If your 1099s are clean and your deposits are messy, go with 1099 loans.
Pure contractors paid on 1099 — especially those with high write-offs — usually qualify for more with a 1099 loan. Your gross earnings count, not your net.
Business owners in King City with multiple income sources, or anyone whose bank deposits tell a stronger story than their forms, should look at bank statement loans first.
Not on the same loan. Each program uses one method. A broker can run both scenarios and show which qualifies you for more.
Yes. Non-QM loans carry higher rates than conventional. Rates vary by borrower profile and market conditions.
Most lenders want 1 to 2 years of 1099s. Two years gives the strongest case and more lender options.
Most non-QM lenders want at least a 620. Stronger scores get better rates and lower down payment requirements.
Neither has a built-in speed advantage. Timeline depends on how quickly you can pull your income documents together.