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in Rancho Mirage, CA
Most Rancho Mirage buyers earning self-employed income hit a wall with conventional loans. Two non-QM options exist that actually work: 1099 loans and bank statement loans.
Both skip the W-2 requirement. But they qualify income differently — and that difference determines which one gets you approved.
1099 loans use your 1099 forms — not tax returns — to calculate income. This is built for independent contractors and freelancers who get paid on a 1099 basis.
Lenders typically look at one to two years of 1099s. They use a percentage of that gross income to qualify you. No business bank account required.
Bank statement loans use 12 to 24 months of deposits to prove income. Lenders apply an expense ratio to your deposits and count the rest as qualifying income.
This works for business owners who run revenue through a business account — or self-employed borrowers with strong deposit history but low taxable income.
The core difference is how income gets calculated. 1099 loans use gross earnings from your forms. Bank statement loans use net deposits after an expense ratio is applied.
1099 loans tend to be cleaner for pure contractors with no business overhead. Bank statement loans fit better when income flows through a business account with variable deposits.
If you receive 1099s directly and your gross income is consistent, the 1099 loan is usually simpler and faster. Fewer documents, straightforward qualification.
If you own a business, run revenue through accounts, or your income picture is more complex, bank statements often show a stronger income story. At SRK CAPITAL, we run both scenarios before recommending one.
Some lenders allow layered documentation. SRK CAPITAL can identify which approach — or combination — qualifies you for the most.
Neither is consistently cheaper. Rates depend on credit score, LTV, and the lender. Rates vary by borrower profile and market conditions.
Yes. Both are available as jumbo non-QM products, which matters given Rancho Mirage price points. Loan limits vary by lender.
Most lenders want one to two years of 1099 forms. Two years gives a stronger application. One year is accepted by some lenders.
Most non-QM lenders want 660 or higher. Some go lower with compensating factors like larger down payments or strong reserves.
Non-QM loans typically take longer than conventional. Plan for 20 to 30 business days depending on document review and the lender.