Loading
in Monterey, CA
Most Monterey buyers don't fit the W-2 mold. Freelancers, contractors, and self-employed professionals need loans built for how they actually earn.
Two non-QM options dominate this space: 1099 loans and bank statement loans. Knowing which fits your income structure saves time and gets you to closing faster.
1099 loans are built specifically for independent contractors and freelancers. Lenders use your 1099 forms — not tax returns — to verify income.
This matters because contractors often write off very little. Your 1099 income shows what you actually earned, not a reduced taxable figure.
Bank statement loans work for self-employed borrowers who run money through a business account. Lenders average 12 to 24 months of deposits to calculate income.
Business owners with heavy write-offs benefit most here. Tax returns show low income — bank statements show actual cash flow.
The core split is simple: how do you get paid? 1099 earners with straightforward contractor income fit the 1099 loan. Business owners depositing revenue into a company account fit bank statements.
Rates on both programs run higher than conventional. Non-QM lending carries more lender risk, and pricing reflects that. Rates vary by borrower profile and market conditions.
If you get 1099s from clients and don't run a formal business account, the 1099 loan is the cleaner path. Fewer documents, more direct income proof.
If you own a business, pay yourself inconsistently, and have years of bank deposits showing strong revenue — go bank statement. We see this structure often with Monterey's hospitality and tech contractors.
Some lenders allow blended documentation. We shop across 200+ wholesale lenders to find who will work with your specific income mix.
Most non-QM lenders want at least 620. Better pricing typically starts at 680 or above.
Most 1099 and bank statement programs require 10–20% down. Lower down payments are possible but come with rate trade-offs.
Yes. Non-QM loans price higher due to lender risk. Rates vary by borrower profile and market conditions.
Lenders apply an expense ratio to business accounts — typically 50% of deposits count as income. Personal accounts get a higher credit.
Non-QM loans often take 30–45 days. Having your statements or 1099s organized upfront cuts that timeline significantly.