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in San Francisco, CA
Self-employed borrowers in San Francisco have two strong non-QM mortgage options. Both 1099 Loans and Bank Statement Loans help you qualify without traditional W-2 income documentation.
These programs serve independent contractors, freelancers, and business owners differently. Understanding which matches your income structure helps you move forward with confidence.
Rates vary by borrower profile and market conditions. Both options offer flexible underwriting for San Francisco's diverse self-employed community.
1099 Loans use your 1099 forms to verify income as an independent contractor or freelancer. This option works best when your 1099 statements accurately reflect your earning power.
Lenders typically review one to two years of 1099 documentation. They calculate your qualifying income based on these forms without requiring tax returns in some cases.
This approach serves gig workers, consultants, and freelancers across San Francisco. It simplifies qualification when your 1099s show consistent income.
Bank Statement Loans analyze 12 to 24 months of personal or business bank deposits. This method calculates income from actual cash flow rather than tax documents.
Lenders review your bank statements to determine average monthly deposits. This approach benefits business owners who write off significant expenses on tax returns.
Self-employed borrowers across San Francisco use this option when tax returns understate actual income. It provides flexibility for those with complex business structures.
The main difference lies in documentation requirements and who benefits most. 1099 Loans need clear contractor income, while Bank Statement Loans examine overall cash flow.
1099 Loans work when you receive most income via 1099 forms with minimal expenses. Bank Statement Loans suit business owners with high deductions or mixed income sources.
Processing times and requirements differ between programs. Your income structure and documentation availability determine which path makes sense for your situation.
Choose 1099 Loans if you work primarily as a contractor with clear 1099 income. This option streamlines qualification when your forms accurately represent earnings.
Bank Statement Loans make sense for business owners with substantial write-offs or multiple income streams. They capture earning power that tax returns might not show.
Many San Francisco self-employed borrowers qualify for both programs. A mortgage broker can review your specific situation and recommend the best fit.
Yes, many self-employed borrowers qualify for both programs. Your broker can help you choose which documentation method presents your income most favorably.
Rates vary by borrower profile and market conditions. Neither program automatically offers better rates; your credit, down payment, and income strength determine pricing.
1099 Loans typically require one to two years of 1099 forms. Bank Statement Loans need 12 to 24 months of consecutive bank statements.
Yes, both programs accommodate higher loan amounts common in San Francisco. Lenders set specific limits based on your income and qualifications.
It depends on your documentation. 1099 Loans are simpler with clean contractor income. Bank Statement Loans help when expenses reduce taxable income.