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in Upland, CA
Upland has a strong base of self-employed buyers. Contractors, consultants, and freelancers all face the same wall: traditional lenders won't count their income.
Two non-QM loan types solve this. The right one depends on how you get paid and how clean your records are.
1099 loans use your 1099 forms — not tax returns — to prove income. This works well if your write-offs crush your taxable income on paper.
Lenders typically average one to two years of 1099 earnings. You need consistent clients and clean 1099 documentation.
Bank statement loans qualify you on cash deposits — not forms. Lenders review 12 to 24 months of statements and apply an expense ratio.
This program fits business owners whose revenue flows through a business or personal account. It doesn't matter how your income is categorized.
1099 loans are narrower. They only work if you actually receive 1099 forms. Bank statement loans are broader — they capture any deposited income.
Rate-wise, both are non-QM and price above conventional. Bank statement loans often run slightly higher due to the layered verification. Rates vary by borrower profile and market conditions.
If you're a pure 1099 contractor — gig worker, freelancer, independent rep — start with the 1099 loan. It's simpler and can price better.
If you own a business, take client payments in multiple ways, or don't always get 1099s, bank statements are your path. More paperwork, but broader eligibility.
Some lenders allow hybrid documentation. SRK CAPITAL can identify programs that layer both for stronger qualification.
Most non-QM lenders want a 620 minimum. Stronger scores get better pricing on both programs.
Typically yes. Expect 10-20% down for non-QM loans. Exact requirements vary by lender and credit profile.
Plan for 30-45 days. Statement review adds time versus a standard loan. Having statements ready speeds things up.
Lenders average the two years. A big drop in year two can hurt you — consistent or rising income qualifies best.