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in Los Gatos, CA
Los Gatos runs on self-employed income. Consultants, contractors, and founders all need mortgage options that match how they actually get paid.
Both 1099 loans and bank statement loans are non-QM products. Neither uses tax returns as the primary income proof.
1099 loans use your 1099 forms to verify income. Lenders typically average one to two years of 1099 earnings.
This works best for single-client contractors or freelancers with consistent 1099 income from a few sources.
Bank statement loans qualify you on actual deposits — not what's on your tax return. Lenders review 12 to 24 months of statements.
Business owners who write off heavy expenses often qualify for more here. Deposits show real cash flow that taxes hide.
The core difference is what the lender reads. 1099 loans use tax forms. Bank statement loans use deposit history.
If your tax returns show low net income due to deductions, bank statements often tell a better story. 1099 loans can backfire for borrowers with aggressive write-offs.
Pick a 1099 loan if you're a freelancer or contractor with clean 1099 income and minimal expense deductions.
Go bank statement if you run a business, have significant write-offs, or deposit income from multiple sources.
Some lenders allow hybrid documentation. We shop across 200+ wholesale lenders to find programs that accept your specific income mix.
Both programs offer jumbo options. Los Gatos prices typically require higher loan amounts, and non-QM lenders can accommodate that.
Most non-QM lenders want a 660 or higher. Stronger credit gets you better pricing on both programs.
With a 1099 loan, heavy write-offs hurt you. Bank statement loans ignore your tax deductions and use deposits instead.
Yes, non-QM rates run higher than conventional. Rates vary by borrower profile and market conditions.
Non-QM underwriting takes longer than conventional. Plan for 30–45 days depending on documentation and lender.