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in Calistoga, CA
Calistoga attracts wine industry owners, consultants, and contractors — self-employed borrowers who can't hand a lender a W-2. These two non-QM loans exist precisely for that situation.
Both options skip traditional income verification. The difference is how they prove you earn enough to repay.
1099 loans use your contractor or freelance income documents directly. Lenders look at your 1099 forms — usually two years — to calculate qualifying income.
This works best when your 1099 income is consistent and clearly documented. Gaps or irregular clients can create problems at underwriting.
Bank statement loans qualify you on deposits, not tax returns. Lenders use 12 to 24 months of statements to calculate your average monthly income.
This is the go-to for business owners who write off expenses aggressively. Your tax return may show low net income — your bank statements often tell a different story.
The core difference is the income document. 1099 loans pull from IRS forms. Bank statement loans pull from your actual cash flow.
Bank statement loans tend to serve business owners better. 1099 loans suit independent contractors who get paid per project and have clean 1099 records.
If you're a consultant, contractor, or gig worker with two solid years of 1099s, start there. The documentation is simpler and underwriting is more straightforward.
If you own a Calistoga wine business or hospitality operation and your write-offs crush your taxable income, bank statements are likely the stronger path.
Some lenders allow blended documentation. Ask your broker which method produces the higher qualifying income for your specific file.
Yes. Non-QM loans carry more lender risk. Rates vary by borrower profile and market conditions, but expect a premium over conventional pricing.
Most lenders want at least a 620 for non-QM products. Stronger scores get better pricing on both loan types.
Expect 10% to 20% down minimum on most non-QM loans. Higher down payments can offset weaker income documentation.
Neither is dramatically faster than the other. Timeline depends more on how quickly you gather your documents than on loan type.