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in Los Altos Hills, CA
Most Los Altos Hills buyers aren't W-2 employees. Consultants, founders, and freelancers need a different path to financing.
Two non-QM options fit this profile: 1099 loans and bank statement loans. Knowing the difference saves you time and money.
1099 loans use your contractor income forms — not tax returns — to verify what you earn. Lenders typically want 1-2 years of 1099s.
This works best if your 1099 income is consistent and your write-offs don't wipe out your reported earnings on paper.
Bank statement loans use 12 to 24 months of deposits to calculate income. Lenders apply an expense ratio to estimate your net.
This works for business owners whose 1099s don't exist — or whose bank deposits tell a stronger story than any form does.
1099 loans use a specific income document. Bank statement loans use cash flow. That distinction drives everything else.
Bank statement loans typically require more documentation prep. But they can capture income that 1099s never reflect.
If you're a freelancer or contractor paid by 1099, start there. The qualification math is simpler and faster.
If you own a business, take mixed income, or have heavy write-offs — bank statements usually give you more room to qualify.
Some lenders allow combined documentation. We can shop that option across our wholesale network to find who accepts it.
Yes. Non-QM loans carry higher rates than conventional financing. Rates vary by borrower profile and market conditions.
Most lenders want at least 620-660 for non-QM products. Stronger scores get better pricing on both loan types.
Non-QM loans aren't capped by conforming limits. Loan amounts depend on your income documentation and the lender's guidelines.
1099 loans often close faster. Bank statement loans require more document review, which can add days to underwriting.