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in Cathedral City, CA
Most Cathedral City buyers with self-employment income get turned away by conventional lenders. Both 1099 loans and bank statement loans fix that problem — but they work differently.
Choosing the wrong one can cost you the deal. Understanding how each loan qualifies your income is the key decision.
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 on their returns. Your 1099 gross income tells a much better story than your taxable income.
Bank statement loans work for any self-employed borrower — not just 1099 earners. Lenders review 12 to 24 months of deposits to calculate your income.
Business owners who mix income streams often do better here. If your money comes from multiple clients or sources, bank statements capture the full picture.
The biggest split is documentation. 1099 loans need your 1099 forms. Bank statement loans need your actual deposit history — no 1099 required.
Bank statement lenders apply an expense ratio to business account deposits. That reduces your qualifying income. 1099 loans typically use a higher percentage of gross income, which can mean a larger loan amount.
If you're a contractor or freelancer with clean 1099 income, start with the 1099 loan. You'll likely qualify for more and document less.
If you own a business, take distributions, or deposit income from multiple channels, bank statements usually work better. Talk to us — we run both scenarios before recommending one.
Some lenders allow it, but most require you to pick one method. We match you to lenders whose guidelines fit your income type.
Rates depend on credit score, down payment, and lender. Rates vary by borrower profile and market conditions — we shop both across 200+ wholesale lenders.
Most Non-QM lenders want at least a 620 score. Stronger credit improves your rate on both 1099 and bank statement loans.
Loan limits vary by lender and your qualifying income. Non-QM loans can go well above conforming limits for strong borrower profiles.
No. That's the point. Both programs bypass tax returns and use alternative income documentation instead.
Typically 21-30 days with complete documents. Delays usually come from missing bank statements or unclear deposit history.