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in Stockton, CA
Both loan types serve self-employed borrowers in Stockton who can't qualify through traditional channels. The difference comes down to how you document income and what shows up in your financial records.
1099 loans work if you receive clean contractor income with minimal expenses. Bank statement loans shine when deposits tell a better story than tax returns.
1099 loans use your contractor income forms to verify earnings. Lenders total your 1099s from the past two years and calculate an average monthly income.
This works well for consultants, tech contractors, and healthcare professionals who receive consistent 1099 income. You need minimal business expenses eating into your bottom line.
Stockton's growing logistics and healthcare sectors generate plenty of contract work. If most of your income flows through 1099s without major write-offs, this path is cleaner.
Bank statement loans analyze 12 to 24 months of business or personal bank deposits. Lenders calculate income from actual cash flow instead of tax filings.
This program works for borrowers who write off business expenses heavily or run cash-intensive operations. Your deposits reveal earning power that tax returns hide.
Many Stockton entrepreneurs in construction, food service, and retail benefit from this approach. If your tax returns show low income but deposits prove higher earnings, bank statements work better.
1099 loans require clean contractor income with few deductions. Bank statement loans handle complex business structures and significant expenses.
Documentation is simpler with 1099s—just the forms themselves. Bank statements require every page from a full year or two, with all deposits explained.
Rates vary by borrower profile and market conditions. Bank statement loans typically price slightly higher because they accommodate more complex income scenarios.
Choose 1099 loans if you work as an independent contractor with consistent forms and minimal expenses. Your 1099s already show strong, verifiable income.
Pick bank statement loans if you own a business with significant deductions or operate in cash-heavy industries. This works when deposits exceed what tax returns reflect.
Stockton borrowers in healthcare consulting, tech contracting, or professional services lean toward 1099 loans. Restaurant owners, contractors, and retailers typically need bank statement programs.
Some lenders blend documentation types, but most programs require one method. We choose whichever shows stronger qualifying income for your situation.
Most non-QM programs start at 10-15% down, though some allow less. Your exact requirement depends on credit score and the property type.
1099 loans often price slightly better because income is simpler to verify. Rates vary by borrower profile and market conditions.
1099 loans require two years of forms. Bank statement programs need 12 to 24 months of consecutive statements.
Most lenders want two full years of 1099 history. If you're newer, bank statements showing consistent deposits might work better.