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in Mountain House, CA
Self-employed buyers in Mountain House face a real problem. Traditional lenders see irregular income and say no.
Two non-QM options exist for this: 1099 loans and bank statement loans. Knowing which fits your income type matters.
1099 loans are built for independent contractors and freelancers. Your 1099 forms replace the W-2 as proof of income.
Lenders typically average one to two years of 1099 earnings. You don't need to show business bank accounts.
Bank statement loans work differently. Lenders use 12 to 24 months of deposits to calculate your income.
This fits business owners whose tax returns show low income after deductions. Deposits tell the real story.
The core difference is how income gets documented. 1099 loans use tax forms. Bank statement loans use deposit history.
Bank statement loans often allow higher income calculations for business owners with heavy expenses. 1099 loans are simpler for pure contractors.
If you get 1099s from a few clients and don't run a formal business, the 1099 loan is cleaner and faster.
If you run a business, write off significant expenses, and your tax returns look bad — go bank statement. Your deposits will qualify you where your returns won't.
Some lenders allow blended documentation. We can identify which approach yields a higher qualifying income for your file.
Both programs support higher loan amounts through non-QM jumbo options. Limits depend on the lender and your qualifying income.
Requirements vary by lender. Most non-QM lenders want at least a 620-640 score for either program.
Most non-QM lenders require 10-20% down. Stronger credit and income documentation can mean lower down payment requirements.
Yes, non-QM rates run higher than conventional. Rates vary by borrower profile and market conditions.
Non-QM underwriting can take a few days longer. Having clean, organized statements or 1099s speeds the process significantly.