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in Carlsbad, CA
Most Carlsbad self-employed borrowers get rejected by conventional lenders. Their income is real — it just doesn't fit a W-2 box.
Two non-QM loans solve this: 1099 loans and bank statement loans. Picking the wrong one costs you time and money.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms — not tax returns — to calculate income.
This matters because most contractors write off heavy expenses. Tax returns show low 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 factor and count the rest as qualifying income.
This works best for business owners with steady cash flow. Restaurant owners, agency founders, and contractors with business accounts all use this path.
1099 loans look at what clients paid you. Bank statement loans look at what hit your account. Those numbers can differ significantly.
Bank statement loans carry more lender flexibility but also more complexity. The expense factor calculation varies by lender — that's where we shop for you.
You're a freelancer or contractor paid via 1099 with no business entity? Start with a 1099 loan. It's cleaner and faster.
You run a business, pay yourself from a business account, or have multiple income streams? Bank statements give you more options. Carlsbad has no shortage of self-employed buyers in both camps — we see this split weekly.
Some lenders allow blended documentation. Ask your broker — not every lender on our panel does this, but some do.
Rates vary by borrower profile and market conditions. Neither is consistently cheaper — your credit score and down payment matter more.
Most lenders want at least two years. Some accept one year with strong compensating factors like high credit or large reserves.
Most non-QM lenders start at 620-640. Higher scores get better pricing on both 1099 and bank statement loans.
Expect 10-20% down minimum on most non-QM products. Carlsbad price points often push borrowers toward larger down payments.
1099 loans are generally simpler to document. Bank statement loans require more lender review time on deposit analysis.