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in Huntington Beach, CA
Most Huntington Beach self-employed buyers get rejected by conventional lenders. Their income is real — it just doesn't show up cleanly on a tax return.
Two non-QM loans solve this: 1099 loans and bank statement loans. Knowing which fits your income structure saves time and gets you to the closing table 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 kill conventional loan eligibility. A 1099 loan bypasses that problem entirely.
Bank statement loans work for self-employed borrowers who run their income through a business or personal account. Lenders average 12 to 24 months of deposits to determine your qualifying income.
This is the go-to option for business owners in Huntington Beach who pay themselves through an LLC or S-corp. Your tax return says one thing. Your bank account tells the real story.
The core difference is how income gets documented. 1099 loans use your contractor earnings forms. Bank statement loans use actual cash flow moving through your accounts.
If you receive 1099s from clients, the 1099 loan is more direct. If you're a business owner who doesn't issue yourself 1099s, bank statements are the cleaner path.
Freelancers and contractors with steady 1099 clients should start with the 1099 loan. The documentation is simpler and the income calculation is more straightforward.
Business owners — especially those in Orange County trades, real estate, or professional services — usually fit better with bank statement loans. Run the numbers both ways with your broker before committing.
Some lenders allow blended documentation. Ask your broker which method produces the higher qualifying income for your profile.
Non-QM loans typically require 10-20% down. Exact requirements depend on the lender and your credit profile.
Most non-QM lenders want a 620 minimum. Stronger scores above 680 open better rate tiers. Rates vary by borrower profile and market conditions.
Most programs require 12 months minimum. A 24-month average often produces a stronger qualifying income figure.
Yes. Business account deposits are discounted — commonly 50% — to account for business expenses. Personal account statements avoid this reduction.
Yes, both programs can work for condos and investment properties. Non-warrantable condos and investment use cases may require a larger down payment.