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in Citrus Heights, CA
Most Citrus Heights self-employed buyers get turned away by conventional lenders. Their tax returns show too little income after deductions.
Two non-QM options solve that problem differently. Knowing which fits your income type saves you time and money.
1099 loans use your 1099 forms to calculate income. Lenders typically average one to two years of 1099 earnings.
This works best for contractors and freelancers with consistent 1099 clients. You need clean 1099s — not a mix of cash and deposits.
Bank statement loans use 12 or 24 months of deposits to prove income. Lenders apply an expense ratio to calculate your qualifying income.
This is the go-to for self-employed borrowers who run business expenses through their accounts. More flexible than 1099 loans for complex income structures.
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 Citrus Heights.
Most Citrus Heights self-employed buyers get turned away by conventional lenders. Their tax returns show too little income after deductions.
Two non-QM options solve that problem differently. Knowing which fits your income type saves you time and money.
1099 loans use your 1099 forms to calculate income. Lenders typically average one to two years of 1099 earnings.
The core difference is what document proves your income. 1099 loans need the actual 1099 forms. Bank statement loans need deposit history.
Bank statement loans apply an expense ratio — often 50% for business accounts — which lowers your qualifying income. 1099 loans typically use a higher percentage of gross earnings.
If you get paid exclusively via 1099 with consistent clients, the 1099 loan usually gets you to a higher loan amount. Your gross 1099 income counts more directly.
If you own a business, take cash payments, or have income from multiple sources, bank statements give lenders a fuller picture. Most business owners in Citrus Heights land here.
Some lenders allow blended documentation. A broker can match you to one that does — this is common for borrowers with both contract and business income.
Most non-QM lenders want at least a 620 credit score. Higher scores get better rates on both loan types.
Loan limits depend on your qualifying income and lender guidelines. Non-QM loans often go into jumbo territory with no hard agency caps.
Yes, non-QM rates run higher than conventional. Rates vary by borrower profile and market conditions.
Plan for 21 to 30 days with a prepared file. Missing statements or gaps in 1099 history are the most common delays.
Most non-QM lenders require 10% to 20% down. Stronger credit and income documentation can sometimes lower that requirement.