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in San Juan Capistrano, CA
Most San Juan Capistrano self-employed buyers don't fit the W-2 mold. Two non-QM loan types are built for exactly that situation.
1099 loans and bank statement loans both bypass tax returns. But they work differently — and the wrong pick can kill a deal.
A 1099 loan uses your 1099 forms to verify income. Lenders typically average one to two years of 1099 earnings.
This works best for contractors with consistent clients and clean 1099 history. Gig workers with scattered income sources may struggle.
Bank statement loans use 12 to 24 months of deposits to calculate income. Lenders apply an expense ratio to get your net qualifying figure.
This is the go-to for business owners who run real revenue through a business account. Heavy write-offs actually become less of a problem.
Local decision guide
Use this comparison to weigh 1099 Loans and Bank Statement Loans through local payment fit, eligibility, documentation, and timing before choosing a path in San Juan Capistrano.
Most San Juan Capistrano self-employed buyers don't fit the W-2 mold. Two non-QM loan types are built for exactly that situation.
1099 loans and bank statement loans both bypass tax returns. But they work differently — and the wrong pick can kill a deal.
A 1099 loan uses your 1099 forms to verify income. Lenders typically average one to two years of 1099 earnings.
The core split is how income gets verified. 1099 loans look at what clients paid you. Bank statement loans look at what hit your account.
Rates vary by borrower profile and market conditions, but bank statement loans often price slightly higher. The added flexibility costs something.
If you're a contractor with straightforward 1099s and no business overhead, start there. It's the cleaner path to approval.
If you run a business, have high write-offs, or deposit income from multiple streams, bank statements usually produce a stronger qualifying number.
Some lenders allow combined documentation. We match you with programs that accept your specific income mix.
Most lenders want at least two years. Some bank statement programs allow one year with strong deposit history.
1099 loans typically use gross 1099 income before deductions. This gives a major advantage over tax return-based loans.
Both non-QM programs typically require 10-20% down. Your credit score and loan amount affect where you land in that range.
Yes. We work with 200+ wholesale lenders and close non-QM deals throughout Orange County, including San Juan Capistrano.
1099 loans often move faster because the doc stack is simpler. Bank statement reviews take more time to underwrite.