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in Solana Beach, CA
Most Solana Beach buyers with self-employed income hit a wall with conventional loans. Two non-QM options exist that actually work: 1099 loans and bank statement loans.
Both skip W-2s entirely. The difference is how each program reads your income — and that affects your rate, your docs, and your approval odds.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms — not tax returns — to calculate qualifying income.
This matters if your tax returns show heavy write-offs. Your 1099 gross income does the heavy lifting instead of your net taxable income.
Bank statement loans use 12 to 24 months of deposits to prove income. Lenders average your monthly deposits and apply an expense ratio to land on qualifying income.
This program fits business owners who run revenue through a business account. Personal or business bank statements both work, depending on the lender.
Local decision guide
Use this comparison to weigh 1099 Loans and Bank Statement Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Solana Beach.
Most Solana Beach buyers with self-employed income hit a wall with conventional loans. Two non-QM options exist that actually work: 1099 loans and bank statement loans.
Both skip W-2s entirely. The difference is how each program reads your income — and that affects your rate, your docs, and your approval odds.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms — not tax returns — to calculate qualifying income.
The core difference is income documentation. 1099 loans read your gross contract earnings. Bank statement loans read your actual cash deposits.
If your deposits run lower than your 1099 income — common with business owners who reinvest revenue — the 1099 loan often qualifies you for more. Rates vary by borrower profile and market conditions.
Pick the 1099 loan if you earn from one or a few clients and get consistent 1099s each year. It's a cleaner file with fewer moving parts.
Go bank statement if you own a business, run multiple revenue streams, or don't always receive formal 1099 forms. The deposit history tells your income story better.
Some lenders allow blended documentation. A broker can shop that scenario across multiple wholesale lenders to find who will accept it.
Yes. Both 1099 and bank statement loans carry higher rates than conventional financing. Rates vary by borrower profile and market conditions.
Most lenders want 12 to 24 months of 1099 forms. Two full years is the standard that gets the most competitive pricing.
Most non-QM lenders set a floor around 620 to 640. Higher scores improve your rate meaningfully on both programs.
Both typically require 10% down at minimum. Larger down payments reduce your rate and improve approval odds on either program.
Yes, on bank statement loans. Lenders apply an expense ratio to business deposits, which lowers the income figure used for qualifying.