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in El Cajon, CA
Self-employed borrowers in El Cajon get rejected by conventional lenders every day. Not because they can't afford the payment — because their tax returns don't tell the full story.
Both 1099 loans and bank statement loans solve that problem. But they work differently, and the wrong choice costs you.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms — not tax returns — to calculate income.
This matters if you write off heavy expenses. Your Schedule C might show $40K net. Your 1099s might show $120K gross. Lenders use the 1099 number.
Bank statement loans use 12 to 24 months of deposits to prove income. No tax returns. No 1099s.
This is the go-to for business owners who mix personal and business cash flow. Lenders apply an expense ratio to your deposits and arrive at qualifying income.
The core difference is what lenders look at. 1099 loans use your gross contract income. Bank statement loans use your actual deposits.
Bank statement loans typically offer more flexibility on income type. But they require clean, consistent deposit history. Unexplained large deposits create problems.
If you're a freelancer or contractor with steady 1099 clients, the 1099 loan is often cleaner. Fewer documents, simpler income calculation.
If you run a business, collect cash, or have multiple income streams, bank statements usually capture more of what you actually earn. Talk to us before assuming either way.
Some lenders allow blended income documentation. We shop across 200+ wholesale lenders to find programs that accept your specific income mix.
Most non-QM lenders want at least a 620 score. Stronger credit means better rates and more program options.
Most programs require at least 10% down. Larger down payments improve your rate and lower lender risk.
Yes. Both loan types can be used for primary residences and investment properties. Terms differ by occupancy type.
Yes, non-QM loans typically price higher than conventional. Rates vary by borrower profile and market conditions.
1099 loans often close faster due to simpler documentation. Bank statement loans take longer to underwrite with 12-24 months of records.