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in Rocklin, CA
Self-employed borrowers in Rocklin face a real problem. Traditional lenders look at tax returns — and most self-employed people write off enough to kill their approval.
Two non-QM loan types solve this. Both skip tax returns. But they qualify you differently, and the wrong choice costs you.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms directly to calculate income — no bank statements required.
Most lenders want two years of 1099s from the same field. They typically count 75-90% of gross 1099 income. Rates vary by borrower profile and market conditions.
Bank statement loans use 12 to 24 months of deposits to verify income. Lenders apply an expense ratio — typically 50% for personal accounts — to calculate net income.
This works well for business owners who mix income streams. If your 1099s are inconsistent but your deposits are solid, bank statements often tell a better story.
The core difference is documentation. 1099 loans need your earnings forms. Bank statement loans need your deposit history. One looks at what clients paid you — the other at what hit your account.
Bank statement loans are more flexible for complex income. But that flexibility comes with more paperwork. 1099 loans move faster when your income is clean and consistent.
If you're a Rocklin contractor with steady clients and clean 1099s, the 1099 loan is the faster path. The income calculation is direct and underwriters move quickly.
If you run a business, pull income from multiple sources, or have a gap year in 1099s — go bank statements. Rocklin has a strong small business base. We see both loan types close here regularly.
No — lenders pick one method per loan. Your broker chooses whichever produces the higher qualifying income for your file.
Both are non-QM loans. Most lenders want at least a 640-660 score for either program, though requirements vary by lender.
Yes. Both 1099 and bank statement loans work for purchases and refinances in Rocklin and across Placer County.
Most non-QM lenders require 10-20% down. The exact amount depends on your credit score and the lender's guidelines.
Yes. Non-QM loans carry higher rates than conventional loans. Rates vary by borrower profile and market conditions.
A dip in recent 1099 income can hurt your qualifying amount. Bank statements may show stronger deposits and work better for your file.