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in Milpitas, CA
Most Milpitas buyers work in tech, consulting, or run their own businesses. W-2 income is not the only way to qualify for a mortgage.
Both 1099 loans and bank statement loans serve self-employed borrowers. But they work differently — and the wrong choice costs you.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms to document income — not tax returns.
This matters because contractors often write off very little. Your 1099 earnings reflect what you actually made.
Bank statement loans use 12 to 24 months of deposits to calculate income. Lenders average your deposits and apply an expense ratio.
This works well for business owners whose money flows through a business account. Personal or business statements both qualify.
1099 loans use your gross 1099 earnings. Bank statement loans average your deposits, then reduce them by an expense ratio — often 50%.
If your deposits run higher than your 1099s, bank statements win. If your 1099 income is clean and consistent, the 1099 route is simpler.
Freelancers and independent contractors with steady 1099 clients usually do better with a 1099 loan. The documentation is straightforward.
Business owners who pay themselves through a company account should look at bank statements first. Especially if tax returns show heavy deductions.
Some lenders accept 12 months. Most prefer two years of consistent 1099 history to feel confident in your income.
Yes. Both personal and business accounts qualify. The lender will apply an expense ratio to calculate usable income.
Both are non-QM loans with similar credit thresholds. Lenders typically want at least a 620-640 score for either program.
Some lenders allow blended documentation. It depends on the lender — that's why having access to many programs matters.
Yes, non-QM loans carry higher rates than conventional. Rates vary by borrower profile and market conditions.
1099 loans are a natural fit for W2-to-contractor tech workers. Bank statements suit those running an established business entity.