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in Seaside, CA
Most Seaside buyers with self-employment income hit a wall with conventional loans. Two non-QM options exist that actually work: 1099 loans and bank statement loans.
Both skip traditional income verification. But they qualify you differently — and that distinction decides which one you can actually get approved for.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms — not tax returns — to calculate qualifying income.
This matters if your tax return shows heavy write-offs. Your 1099 gross income is what lenders look at, not your reduced net income.
Bank statement loans use 12 to 24 months of deposits to prove income. Lenders apply an expense ratio to calculate your usable monthly income.
This works well for business owners with mixed income streams. If deposits are strong and consistent, you can qualify without any 1099s at all.
1099 loans verify income through tax documents. Bank statement loans verify income through actual cash deposits. That's the core difference.
Bank statement loans carry more lender flexibility but require clean, consistent deposit history. 1099 loans are simpler if your income comes from identifiable clients. Rates vary by borrower profile and market conditions.
You're a 1099 borrower if you freelance or contract and receive 1099s from clients. Your gross income on those forms is your qualifying number.
You're a bank statement borrower if you run a business, mix income sources, or don't issue 1099s. Consistent deposits over 12 to 24 months is what closes the deal.
You can be evaluated for both. We'll run your scenario through each and show you where you qualify strongest.
Yes, non-QM loans typically price higher. Rates vary by borrower profile and market conditions.
Most lenders want at least 620-640 for these programs. Higher scores get meaningfully better pricing.
Expect a minimum of 10% down. Many lenders require 20% for the best rate tiers on non-QM loans.
Yes. Both programs work for primary residences and investment properties in Seaside and greater Monterey County.
We can evaluate both income sources. Bank statement loans often capture the fuller picture in that scenario.