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in Burlingame, CA
Burlingame self-employed buyers have two main paths to approval without W-2s. 1099 loans use your tax forms to verify income. Bank statement loans pull income from your deposits.
Both programs skip traditional pay stubs entirely. The difference is how lenders calculate what you earn. That choice affects your buying power and approval odds in San Mateo County's competitive market.
1099 loans verify income through your tax returns and 1099 forms. Lenders average your last two years of reported income. You need clean tax filings with minimal write-offs to show strong earnings.
This works well for consultants and contractors who don't maximize deductions. Your CPA-prepared returns do the heavy lifting. Expect rates 0.5-1% above conventional loans depending on your credit and down payment.
Bank statement loans pull income from 12-24 months of business or personal deposits. Lenders apply a percentage to your average monthly deposits to calculate qualifying income. This captures revenue before business deductions hit your tax return.
HousingWire just reported that some lenders now accept crypto holdings as reserves through new non-QM products. Bank statement programs already offer flexibility. You can use business accounts, personal accounts, or both to document income.
The tax deduction factor drives most decisions. 1099 loans require reportable income. Bank statement loans look at gross deposits. A contractor earning $300K who writes off $150K shows $150K on tax returns but $300K in deposits.
Documentation timelines differ too. 1099 loans need completed tax returns for the past two years. Bank statement loans need recent statements you probably already have. Approval speed often favors bank statement programs.
Choose 1099 loans if you file conservative tax returns and report strong income. Your two-year average supports the Burlingame price point. Rates run slightly better than bank statement options when your returns are clean.
Go with bank statement loans if you maximize deductions or show inconsistent tax reporting. Your deposits tell a stronger story than your 1040. This program captures the real cash flow running through your accounts and translates it into buying power.
Most lenders pick one method per loan. We run both to see which gives you higher qualifying income. That determines which program to use.
Yes, both typically need 15-20% down in Burlingame. Higher credit scores sometimes unlock 10% down options on either program.
Bank statement loans often close quicker because statements are readily available. Tax returns sometimes need amendments or CPA signatures that add days.
Both accept 620 minimum. You get better rates above 680. Strong credit matters more than which program you choose.
Yes, we can pivot if one method shows stronger income. Happens often when we review documents and find a better qualifying path.