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in Sacramento, CA
Sacramento has a large gig economy. Contractors, consultants, and freelancers need mortgage options built for how they actually earn.
Two non-QM loans dominate here: 1099 loans and bank statement loans. Both skip W-2 requirements. But they work very differently.
1099 loans use your 1099 income forms to verify earnings. Lenders typically average one to two years of 1099s.
This loan fits independent contractors with consistent clients. Think tech consultants, real estate agents, and truckers in the Sacramento area.
Bank statement loans use 12 to 24 months of deposits to calculate income. Lenders apply an expense ratio to your gross deposits.
This works well for business owners whose tax returns show heavy write-offs. Your deposits tell a truer story than your taxable income.
The core difference is documentation. 1099 loans rely on income forms. Bank statement loans rely on cash flow history.
1099 borrowers with minimal write-offs often show higher qualifying income. Bank statement borrowers with big deductions benefit from deposit-based calculations.
If you get paid by clients on 1099s and don't have a business entity, the 1099 loan is usually cleaner. Less documentation, faster process.
If you run a business, take deductions aggressively, and have strong monthly deposits, go bank statement. Your cash flow supports a bigger loan than your tax returns suggest.
Some lenders allow blended documentation. It depends on the lender program. We shop across 200+ wholesale lenders to find the right fit.
Yes. Non-QM loans carry higher rates than conventional financing. Rates vary by borrower profile and market conditions.
Most lenders want at least a 620 for these programs. Some go lower, but expect a higher rate with a lower score.
Non-QM loans are not bound by conforming limits. Your qualifying income and debt load determine your max loan amount.
Most lenders want 24 months. Some accept 12 months with strong compensating factors like reserves or a higher credit score.
1099 loans tend to move faster — fewer documents to source. Bank statement loans take longer when lenders need to analyze 24 months of statements.