Loading
in Goleta, CA
Most Goleta buyers with self-employment income face one core problem: tax returns don't show what they actually earn.
Two non-QM loan types solve this differently. Knowing which fits your income type saves time and avoids dead ends.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms — not tax returns — to calculate income.
This works best when your 1099s show strong gross earnings. If you write off most of it, a different product may serve you better.
Bank statement loans use 12 to 24 months of deposits to calculate your qualifying income. No tax returns. No 1099s needed.
This fits business owners and sole proprietors well. Lenders apply an expense factor to deposits, so your net qualifying income varies.
1099 loans need actual 1099 documents. Bank statement loans need deposit history. The right fit depends on how your income flows.
Bank statement loans carry more lender flexibility on income types. 1099 loans are narrower but simpler if you have clean contractor income. Rates vary by borrower profile and market conditions.
If you get 1099s from clients and have two years of them, start there. It's the cleaner path with fewer moving parts.
If you run a business, mix cash and card deposits, or can't produce consistent 1099s, bank statements usually work better for Goleta buyers.
Some lenders allow layered documentation. Most require you to pick one method. Ask your broker which produces the higher qualifying income.
Both loan types work on standard property types. Condos may require additional review depending on the complex.
Most non-QM lenders require 10–20% down. Stronger credit and income docs can improve your options.
Yes, non-QM rates run above conventional. Rates vary by borrower profile and market conditions.
Most lenders want at least 620. Higher scores improve your rate and lower your down payment requirement.
Non-QM loans often take slightly longer. Expect 3–4 weeks if your documents are organized and complete.