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in Morgan Hill, CA
Most Morgan Hill self-employed buyers get turned down by conventional lenders. Your tax returns don't show what you actually earn.
Two non-QM options fix that problem: 1099 loans and bank statement loans. Knowing which one fits your income structure saves time and money.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms to verify income — not your tax returns.
This matters because most contractors write off enough expenses to make taxable income look low. Your 1099 gross tells a more accurate story.
Bank statement loans use 12 to 24 months of deposits to calculate your income. Lenders look at cash flow, not what you filed with the IRS.
This works well for business owners with multiple revenue streams. If money moves through your accounts consistently, lenders can build a strong income picture.
Local decision guide
Use this comparison to weigh 1099 Loans and Bank Statement Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Morgan Hill.
Most Morgan Hill self-employed buyers get turned down by conventional lenders. Your tax returns don't show what you actually earn.
Two non-QM options fix that problem: 1099 loans and bank statement loans. Knowing which one fits your income structure saves time and money.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms to verify income — not your tax returns.
1099 loans need a clear paper trail from clients paying you directly. Bank statement loans need consistent deposit history — the source matters less.
Rates vary by borrower profile and market conditions. Both loan types carry higher rates than conventional loans. Bank statement loans sometimes price slightly higher due to more complex income analysis.
If you get 1099s from clients and your gross income is strong, start with a 1099 loan. It's a cleaner path with fewer documents.
If you run a business, mix personal and business income, or your 1099s don't capture the full picture, bank statements will likely qualify you for more.
Some lenders allow combined documentation. Most will choose the method that produces the stronger income figure for your file.
Most lenders want 12 months minimum. 24 months strengthens your file and may get you better terms.
Most lenders want at least two years of 1099 income history. Some allow one year with strong compensating factors.
Yes. Both 1099 and bank statement loans work for purchases and refinances. Property type and loan size affect which lenders will approve.
Most non-QM lenders want a 620 minimum. Better scores above 680 open up more lenders and lower rates.
Expect 10% minimum for well-qualified borrowers. Many non-QM lenders require 20% or more depending on your profile.