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in Millbrae, CA
Self-employed borrowers in Millbrae have specialized mortgage options beyond traditional lending. Both 1099 loans and bank statement loans help independent contractors and business owners qualify without W-2 income verification.
These Non-QM programs recognize that self-employed income looks different on paper. The right choice depends on how you receive income and what documentation you can provide.
San Mateo County's competitive real estate market means having the right financing ready makes a difference. Understanding these options helps you move quickly when you find the right property.
1099 loans use your 1099 forms to verify income from independent contractor work. Lenders typically review one to two years of 1099 statements to calculate your qualifying income.
This option works well for consultants, freelancers, and gig workers who receive most income as 1099 compensation. The process mirrors traditional lending more closely since 1099 forms provide clear income documentation.
You'll need organized tax returns and 1099 forms from all income sources. Lenders may average your income across the review period to determine your borrowing capacity.
Bank statement loans analyze 12 to 24 months of personal or business bank deposits. Lenders review your statements to calculate average monthly income based on actual cash flow.
This program benefits business owners whose income appears lower on tax returns due to business deductions. Your real earning power shows through bank deposits rather than taxable income.
You can use personal bank statements, business statements, or a combination of both. Lenders typically apply a percentage factor to your deposits to account for business expenses.
The main difference lies in documentation: 1099 loans require tax forms while bank statement loans analyze actual deposits. Your income structure determines which provides the stronger qualification.
1099 loans work best when your reported income accurately reflects your earning capacity. Bank statement loans shine when business deductions reduce your taxable income but you maintain strong cash flow.
Documentation requirements differ significantly between programs. 1099 loans need organized tax returns and forms from all clients. Bank statement loans require consistent deposit history without large unexplained variations.
Both programs offer flexibility unavailable through conventional lending. Neither requires W-2 verification, though each has specific documentation standards you must meet.
Choose 1099 loans if you work as an independent contractor with straightforward income reporting. This option fits consultants, freelance professionals, and gig workers whose 1099 income represents their true earnings.
Select bank statement loans if you own a business and take legitimate tax deductions that lower reported income. This path works for entrepreneurs whose bank deposits tell a stronger income story than tax returns.
Consider your documentation readiness and income consistency. Can you provide clean 1099 forms from multiple years? Or do your bank statements show steady deposits that demonstrate reliable income?
Working with an experienced Non-QM lender helps you choose correctly. We review both options to find which qualification path gets you the best terms for your Millbrae home purchase.
Some lenders allow combining documentation types, but most programs require choosing one verification method. Your loan officer can determine which single approach provides the strongest qualification for your situation.
Rates vary by borrower profile and market conditions rather than loan type. Your credit score, down payment, and overall financial strength impact pricing more than whether you use 1099s or bank statements.
Most 1099 loan programs require one to two years of forms. Bank statement loans typically need 12 to 24 months of consecutive statements showing consistent deposit patterns.
Neither program requires perfect credit, though higher scores improve your terms. Many Non-QM lenders work with borrowers whose credit scores range from 620 to 700-plus.
Yes, both programs average income over the review period. Consistent seasonal patterns are acceptable, but extreme variations may require explanation or a longer documentation period to establish reliable income.