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in Rancho Cucamonga, CA
Self-employed borrowers in Rancho Cucamonga get turned away by conventional lenders every day. Not because they lack income — because they can't show it on a W-2.
Two non-QM options solve this: 1099 loans and bank statement loans. Knowing which fits your income type saves time and gets you to closing faster.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms — not tax returns — to calculate qualifying income.
This matters because most contractors 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 prove income. Lenders apply an expense ratio and calculate your qualifying income from there.
This works well for business owners whose money flows through a business account. It also works for contractors who deposit inconsistently across accounts.
The core difference is how income gets documented. 1099 loans use your earnings forms. Bank statement loans use your actual deposit history.
Bank statement loans tend to be more flexible for borrowers with multiple income streams. 1099 loans are cleaner when your income comes from one or two consistent clients.
If you file as an independent contractor and receive 1099s from clients, start there. The documentation is straightforward and lenders can qualify you quickly.
If you own a business, pay yourself irregularly, or mix personal and business income, bank statements tell your story better. At SRK CAPITAL, we run your profile against both options before recommending one.
Some borrowers qualify for both. We compare approvals side by side to find the better rate and terms for your profile.
Most non-QM lenders want 10-20% down. Stronger credit and cleaner income history can help you land closer to the lower end.
Yes, non-QM rates are higher. The gap varies by lender — shopping across multiple wholesale lenders helps close it. Rates vary by borrower profile and market conditions.
Most lenders require 12 months minimum. Twenty-four months gives a clearer income picture and can improve your qualifying amount.
Most non-QM lenders require at least 620-640. Higher scores open better pricing on both 1099 and bank statement programs.
1099 loans often move faster because the documentation is simpler. Bank statement reviews take longer when lenders analyze months of deposits.