Loading
in Auburn, CA
Auburn has a strong base of self-employed buyers — contractors, consultants, and freelancers. Traditional loans turn most of them away.
Two non-QM programs exist for exactly this situation. Which one fits you depends on how your income is structured.
1099 loans use your 1099 forms — not tax returns — to verify income. That matters if you write off a lot and your net income looks low.
Lenders typically average one to two years of 1099 earnings. Your gross contract income counts, not what's left after deductions.
Bank statement loans use 12 to 24 months of deposits to prove income. Lenders apply an expense ratio — usually 50% — to calculate what you earn.
This works well if your deposits are consistent. Irregular months can pull your qualifying income down, so deposit history matters.
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 Auburn.
Auburn has a strong base of self-employed buyers — contractors, consultants, and freelancers. Traditional loans turn most of them away.
Two non-QM programs exist for exactly this situation. Which one fits you depends on how your income is structured.
1099 loans use your 1099 forms — not tax returns — to verify income. That matters if you write off a lot and your net income looks low.
1099 loans look at what clients paid you. Bank statement loans look at what actually hit your account. Those numbers often differ.
Business owners who run expenses through their accounts may prefer 1099 loans. Freelancers with clean personal deposits often fare better with bank statements.
If you're a contractor with straightforward 1099s and minimal business expenses, the 1099 route is usually cleaner and faster.
If you run a business with multiple income streams and strong deposit history, bank statements often qualify you for more.
Some lenders allow combined documentation. A broker can identify which approach yields the highest qualifying income for your file.
Most non-QM lenders want 10–20% down. Your credit score and loan size affect the exact requirement.
It depends on the purchase price and your debt load. A broker can run the numbers against current non-QM guidelines.
Yes. Non-QM loans carry a rate premium for flexible documentation. Rates vary by borrower profile and market conditions.
Most lenders require at least two years of self-employment history. Some programs allow one year with strong compensating factors.
1099 loans often close faster — fewer statements to underwrite. Complex bank statement files can add several days to the process.