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in Lodi, CA
Most Lodi self-employed borrowers get rejected by conventional lenders. Their income looks irregular on paper — even when cash flow is strong.
Two non-QM loan types solve this: 1099 loans and bank statement loans. Knowing which fits your income type saves you time and a hard credit pull.
1099 loans are built for independent contractors and freelancers. Lenders qualify you using your 1099 forms instead of tax returns.
This matters if you write off heavy expenses. Your tax return may show little income, but your 1099s reflect what clients actually paid you.
Bank statement loans use 12 to 24 months of deposits to verify income. No tax returns, no 1099s — just your actual cash flow.
This works best for business owners who deposit revenue directly. Lenders calculate income from your average monthly deposits.
The core difference is how income gets documented. 1099 loans use tax forms from clients. Bank statement loans use actual deposit history.
Rates on both run higher than conventional loans. Rates vary by borrower profile and market conditions. Bank statement loans often carry slightly more lender risk, which can affect pricing.
Choose a 1099 loan if you have clean 1099 income from multiple clients and don't take many deductions. Your gross income does the heavy lifting.
Choose a bank statement loan if you run a business with regular deposits. Especially if your tax returns are buried in deductions that misrepresent your real income.
Some lenders allow layered documentation. A broker can shop programs across lenders to find one that accepts both.
Yes. Both loan types apply to purchase and refinance transactions in Lodi and throughout San Joaquin County.
Most non-QM lenders want at least a 620 score. Some programs go lower but expect a higher rate.
Loan limits vary by lender and your documented income. Non-QM lenders often go above conforming limits for strong borrowers.
Underwriting is more flexible on income, but lenders look harder at reserves and down payment. Plan for at least 10-20% down.
Expect 30-45 days depending on documentation turnaround. Having 24 months of clean records ready speeds things up.