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in Los Altos, CA
Los Altos has one of the highest concentrations of self-employed tech workers and consultants in the country. Standard W-2 loans don't work for most of them.
Two non-QM options fit this crowd: 1099 loans and bank statement loans. Picking the right one depends on how you get paid and how you structure your finances.
A 1099 loan uses your 1099 forms to verify income — not tax returns. Lenders typically average your last one to two years of 1099 earnings.
This works well for consultants and freelancers who bill clients directly. Your gross income on the 1099 is what counts, not what's left after deductions.
Bank statement loans use 12 to 24 months of personal or business deposits to calculate your income. No 1099s, no W-2s, no tax returns needed.
This program was built for business owners who show low taxable income after deductions. Lenders apply an expense ratio to your deposits to estimate net income.
The core difference is what document proves your income. 1099 loans use IRS forms. Bank statement loans use actual cash flow hitting your accounts.
If you write off a lot of expenses, your 1099 income might still look strong — but your tax return would kill a conventional loan. Bank statement loans ignore the return entirely and look at deposits instead.
You're a 1099 loan candidate if you're a solo contractor billing under your own name with consistent annual 1099s. Lenders can qualify you fast with just those forms.
Go the bank statement route if you own an S-corp or LLC, run payroll, or write off so much that your Schedule C shows near-zero income. The deposit history tells a better story than your return.
Some lenders allow hybrid documentation. A broker can find programs that blend both to show the strongest income picture.
Most non-QM lenders want 10-20% down. Your credit score and income strength affect exactly where you land.
Most programs require at least a 620 score. Better scores improve your rate and your lender options significantly.
Yes, non-QM rates run higher than conventional. Rates vary by borrower profile and market conditions.
Yes. Los Altos prices often require jumbo financing. Many non-QM lenders offer both programs at jumbo loan amounts.
Most lenders require 12 months minimum. Many prefer 24 months for a cleaner income picture and better terms.