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in Truckee, CA
Truckee attracts a lot of self-employed buyers — ski instructors, remote consultants, seasonal contractors. Standard W-2 underwriting doesn't work for them.
Two non-QM loans dominate this space: 1099 loans and bank statement loans. Knowing which one fits your income type saves time and gets you to closing faster.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms — typically one to two years — to calculate qualifying income.
This works best when your 1099s show strong gross earnings. If you write off most of your income on taxes, this loan type usually beats bank statements.
Bank statement loans use 12 to 24 months of deposits to verify income. Lenders apply an expense ratio — often 50% — to calculate your net qualifying income.
This loan fits business owners and self-employed borrowers whose income flows through a business account. It works even when your 1099s are inconsistent or absent.
The core difference is how income gets calculated. 1099 loans count your gross contract earnings. Bank statement loans count your deposits, then apply an expense ratio haircut.
Rates vary by borrower profile and market conditions. Both loan types price higher than conventional — but lenders weigh income documentation risk differently between the two.
Get a 1099 loan if you're a contractor with consistent 1099 income and minimal write-offs. Your gross income will qualify you at a higher number.
Choose bank statements if you run a business, take irregular draws, or your 1099s don't reflect what you actually deposit. Truckee's seasonal income patterns make this common.
Some lenders allow blended documentation. We'll find the structure that produces the highest qualifying income for your file.
Most non-QM lenders want at least a 640 score. Stronger credit gets better pricing on both loan types.
Expect 10% to 20% down on most non-QM loans. Higher down payments can offset weaker income documentation.
Not necessarily. Bank statement loans handle seasonal deposit patterns well. Two years of statements smooths out slow months.
Yes. Both loan types can be used for second homes. Expect slightly tighter terms than a primary residence purchase.
Plan for 21 to 30 days with clean documentation. Gaps in statements or 1099 history will slow things down.