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in Lompoc, CA
Most Lompoc self-employed borrowers get rejected by conventional lenders. Their income looks messy on paper — even when cash flow is strong.
Two non-QM options solve that problem: 1099 loans and bank statement loans. Knowing which fits your income structure saves time and money.
1099 loans use your 1099 forms to verify income. This works best for contractors and freelancers with consistent 1099 clients.
Lenders typically average one to two years of 1099 earnings. You don't need to show business bank accounts — just your contractor income.
Bank statement loans use 12 to 24 months of deposits to calculate your income. Lenders apply an expense ratio to estimate net income.
This works well for business owners whose tax returns show heavy write-offs. High deductions often sink conventional apps — not here.
The core difference is how income gets documented. 1099 loans use IRS forms. Bank statement loans use actual deposit history.
Bank statement loans carry slightly more flexibility for complex income. But they also require more documentation up front. Rates vary by borrower profile and market conditions.
If you receive 1099s from regular clients and your write-offs are modest, the 1099 loan is the cleaner path. Less documentation, faster review.
If you run a business with significant expenses and your tax returns understate real income, go with bank statements. That's what they're designed for.
Some lenders accept one year on both programs. Two years of history gives you access to better rates and more lender options.
Most non-QM lenders want a 620+ credit score minimum. Some go lower, but rates climb fast below that threshold.
Expect 10-20% down on most non-QM programs. Stronger credit and more reserves can push that toward the lower end.
Yes. Many bank statement lenders accept personal accounts. Business accounts often yield a higher qualifying income calculation.
1099 loans typically require less documentation review. Bank statement loans take longer when deposit patterns are inconsistent.