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in Poway, CA
Most Poway buyers who are self-employed get turned down by conventional lenders. Their income looks messy on paper — even when the cash flow is solid.
Two non-QM options exist for this situation: 1099 loans and bank statement loans. Each uses different proof of income. Picking the right one matters.
A 1099 loan uses your 1099 forms — not tax returns — to prove income. This works well for contractors and freelancers whose returns show heavy write-offs.
Lenders typically want one to two years of 1099s. Your gross income on those forms is what qualifies you. No averaging down by expenses.
Bank statement loans skip the 1099s entirely. Lenders look at 12 to 24 months of deposits instead. Income is calculated from your actual cash flow.
This fits business owners who mix personal and business income. An expense ratio is applied to deposits — usually 50% for business accounts.
The core split: 1099 loans read your gross contract earnings. Bank statement loans read your actual deposits. Same borrower can qualify differently under each.
HousingWire noted Pennymac TPO just expanded their wholesale non-QM lineup to include both products — more lender competition means better pricing options for Poway borrowers. Rates vary by borrower profile and market conditions.
Pure contractors with clean 1099s and few business expenses should start with the 1099 route. It's simpler and faster to document.
Business owners with mixed accounts, multiple clients, or an LLC should look at bank statements. The deposit history often tells a stronger income story.
No. Each product uses one method only. We'll run your numbers both ways and tell you which one qualifies you for more.
Yes, non-QM rates run higher than conventional. Rates vary by borrower profile and market conditions.
Most 1099 and bank statement programs start at 10% down. Stronger credit profiles may access better terms.
Most programs want at least 620-660. Higher scores get better pricing on both loan types.
That's exactly why these loans exist. Neither product uses your tax return to calculate qualifying income.
Non-QM loans can close in 21-30 days with complete documentation. Having your statements or 1099s ready speeds things up.