Loading
in Elk Grove, CA
Most Elk Grove self-employed buyers get turned down by conventional lenders. Their income looks wrong on paper — even when cash flow is strong.
Two non-QM options exist for this exact situation: 1099 loans and bank statement loans. Knowing which fits your income type saves time and closes deals.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms — not tax returns — to calculate income.
This matters because most 1099 earners write off heavy expenses. Tax returns show low net income. Your 1099s show what clients actually paid you.
Bank statement loans use 12 to 24 months of deposits to verify income. Lenders look at cash flowing into your accounts — not what the IRS sees.
This works well for business owners with variable income. If deposits are consistent, lenders can build a qualifying income picture from them.
The core difference is documentation. 1099 loans rely on income forms from clients. Bank statement loans rely on deposit history from your accounts.
1099 loans suit single-client or multi-client contractors with clean 1099 records. Bank statement loans suit business owners whose income flows through accounts, not forms.
If you receive 1099s from clients and don't run a formal business account, the 1099 loan is cleaner. Less documentation, straightforward qualification.
If you own a business, pay yourself irregularly, or mix income streams, bank statements tell a stronger story. Your deposits show the full picture.
Some lenders allow combined documentation. A broker can identify which lenders in Elk Grove accept blended income verification.
Non-QM loans typically require more down than conventional. Exact requirements vary by lender and borrower profile.
Most non-QM lenders want at least a 620 score. Stronger credit gets better terms on both programs.
Yes. Both loan types can be used for primary residences and investment properties in Sacramento County.
Non-QM loans often take 30 to 45 days. Having clean documentation ready upfront speeds things up.