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in San Juan Bautista, CA
San Benito County has a strong base of self-employed workers. Standard W-2 loans shut most of them out.
Two non-QM options fit this group well: 1099 loans and bank statement loans. Knowing which one fits your income structure saves time.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms to verify income — not tax returns.
This matters because contractors often write off heavy expenses. Tax returns show low net income. Your 1099s show what you actually earned.
Bank statement loans use 12 to 24 months of deposits to calculate your income. Lenders look at cash flow, not filed taxes.
This works best for business owners with mixed income streams. If you run deposits through a business account, lenders apply an expense ratio to find qualifying income.
The core difference is documentation. 1099 loans need your contractor income forms. Bank statement loans need your deposit history.
If you issue invoices and collect 1099s, the 1099 loan is cleaner. If your income comes through a business account with no 1099s, bank statements are the path.
Freelancers and contractors who get 1099s from clients are natural fits for the 1099 loan. The paperwork is straightforward.
Business owners — especially those in agriculture, services, or trades common in San Benito County — often do better with bank statements. More flexibility in how income is calculated.
Some lenders allow blended documentation. We shop lenders who offer flexibility on this — it depends on your income structure.
Non-QM loans typically require more down than conventional. Exact requirements depend on credit score and lender guidelines.
Rates vary by borrower profile and market conditions. Neither is universally cheaper — lender, credit score, and LTV drive the final rate.
Most lenders want one to two years. Consistency in income across those years strengthens your file.
Most non-QM lenders start around 620-640. Higher scores open better programs and lower rates.
Yes. Personal accounts avoid the expense ratio haircut applied to business accounts. Both are accepted by most lenders.