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in Indio, CA
Most Indio buyers with self-employment income get rejected by conventional lenders. That's not a credit problem — it's a documentation problem.
Two non-QM options solve this: 1099 loans and bank statement loans. Picking the right one depends on how your income flows.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms — typically one to two years — to calculate qualifying income.
If your clients pay you on 1099 and your tax returns show heavy write-offs, this loan skips the adjusted gross income problem entirely.
Bank statement loans use 12 to 24 months of deposits to verify income. Lenders apply an expense ratio — often 50% — to calculate your net qualifying income.
This works well for business owners with multiple revenue streams or mixed income sources that don't fit neatly on a 1099.
The core difference is income source. 1099 loans require a clear client-contractor relationship. Bank statement loans just need consistent deposits — source matters less.
Bank statement loans typically carry slightly higher rates. More lenders offer them, so there's more competition and more program flexibility across our 200+ wholesale partners.
If you file 1099s from one or two clients and your forms show strong gross income, the 1099 loan is cleaner and usually gets you a better rate.
If you run a business, take cash and card payments, or mix income streams, bank statements give lenders a fuller picture. Go that route if your 1099s don't capture everything you earn.
Some lenders allow blended documentation. We shop that across our wholesale network to find who will accept it.
Most non-QM lenders want a 620 minimum. Stronger scores above 680 open up better pricing. Rates vary by borrower profile and market conditions.
Expect 10% minimum on both programs. Some lenders require 20% depending on your credit and income documentation.
Yes — non-QM rates run higher than conventional. The tradeoff is qualifying when traditional programs won't work for you.
Most want 24 months. Some accept 12 months at a higher rate. Consistency of deposits matters as much as volume.
Both are comparable in timeline — 30 to 45 days typically. Having clean, organized documentation is what drives speed.