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in Rancho Cordova, CA
Most Rancho Cordova self-employed buyers get turned down by conventional lenders. Their tax returns show too little income after deductions.
Two non-QM options exist for this exact situation: 1099 loans and bank statement loans. Both skip the W-2 requirement — but they work differently.
A 1099 loan qualifies you using your 1099 forms — the income documents sent by clients or platforms you work with.
This works best for independent contractors and freelancers with clean 1099 income. If your earnings show up clearly on those forms, qualifying is straightforward.
Bank statement loans verify income using 12 to 24 months of personal or business bank deposits. Lenders calculate an average monthly income from those deposits.
This fits self-employed borrowers who run money through a business account. It also helps when 1099s don't capture the full picture of what you earn.
The core difference is documentation. 1099 loans use your issued income forms. Bank statement loans use actual cash flow moving through your accounts.
Bank statement loans carry more lender flexibility — but also more calculation complexity. An expense ratio gets applied to business deposits, which can lower your qualifying income.
If you're a contractor or freelancer with consistent 1099s from clients, the 1099 loan is cleaner and easier to document. Less back-and-forth with the lender.
If you own a business, mix client payments with other revenue, or don't receive formal 1099s, bank statements tell a stronger income story. We see both loans close regularly in Sacramento County — the right one depends on how your income actually flows.
Some lenders allow combined documentation. Most require you to pick one method. We can shop across 200+ wholesale lenders to find the right fit.
Non-QM loans typically require 10-20% down. Your credit score and loan size affect the exact requirement.
Most lenders want at least a 620-640 score for non-QM programs. Higher scores get better rates. Rates vary by borrower profile and market conditions.
Lenders apply a set expense ratio to business deposits — often 50%. That reduces how much of your deposits count as qualifying income.
Yes. Both 1099 and bank statement loans can be used for investment properties. Expect stricter terms than primary residence deals.
Non-QM loans often take 21-30 days. Gathering the right documentation upfront keeps the timeline on track.