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in American Canyon, CA
Most American Canyon buyers who are self-employed get rejected by conventional lenders. Not because they can't afford the home — because their taxes don't show enough income.
Two non-QM loan types solve this: 1099 loans and bank statement loans. Knowing which fits your income type saves time and gets you approved faster.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms — not tax returns — to calculate qualifying income.
This matters because most contractors write off heavy expenses. Those deductions crush taxable income on paper but don't reflect what you actually earn.
Bank statement loans use 12 to 24 months of deposits to prove income. Lenders apply an expense ratio to your deposits and arrive at a qualifying figure.
This works well for business owners whose income hits a business account. It also covers self-employed borrowers with multiple income streams.
The core difference is documentation. 1099 loans need your earnings forms. Bank statement loans need your deposit history. Neither touches your tax return.
Rates vary by borrower profile and market conditions, but bank statement loans can price slightly higher. The expense ratio applied to deposits may also reduce your qualifying income more than a straight 1099 average would.
If you get paid on 1099s from clients and your earnings show clearly on those forms, start there. The income calculation is more straightforward and often favorable.
If you own a business, pay yourself irregularly, or mix income sources, bank statements usually tell a better story. Bring 24 months of statements if you can — it strengthens the file.
Some lenders allow blended documentation. We shop across 200+ wholesale lenders to find programs that accept combined income evidence.
Non-QM loan limits vary by lender. Many go well above conforming limits, which matters in higher-priced Napa County neighborhoods.
Most non-QM lenders want at least a 620 score. Better rates start around 700. The higher your score, the more lenders compete for your deal.
Expect 10-20% down for most non-QM programs. Some lenders go lower with stronger reserves or credit.
Inconsistent income is exactly what these loans are designed for. Lenders average deposits or 1099 totals over 12-24 months to smooth it out.
Non-QM loans typically close in 21-30 days. Having your statements or 1099s organized upfront speeds the process.