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in San Jose, CA
San Jose runs on self-employed income. Consultants, contractors, and founders don't fit the W-2 mold — and standard loans reject them fast.
Two non-QM options actually work here: 1099 loans and bank statement loans. Knowing which fits your income type saves time and gets you approved.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms — not tax returns — to verify what you earn.
This matters because most contractors write off very little. Your 1099 income is close to your gross. That gives you strong qualifying power.
Bank statement loans use 12 to 24 months of deposits to calculate your income. Lenders apply an expense ratio to estimate net earnings.
This works well for business owners whose 1099s don't tell the full story. If money flows through your accounts, this program sees it.
1099 loans use a single document type. Bank statement loans average months of cash flow. One is simpler; the other is more flexible.
Contractors with one main client often qualify faster with 1099 loans. Business owners with mixed income streams usually do better on bank statements.
If you're a tech contractor or gig worker in San Jose with clean 1099s, start there. The documentation is straightforward and qualification is direct.
If you run a business, take owner draws, or have multiple income sources, bank statements likely show a higher qualifying income. That can mean a larger loan.
Some lenders allow it, but most programs pick one method. A broker can identify which lenders accept combined documentation.
Most non-QM lenders want at least 620-640. Higher scores get better pricing on both loan types.
Non-QM loans aren't capped by conforming limits. Your qualifying income drives the loan amount more than county limits.
Yes. Non-QM rates run higher than conventional. Rates vary by borrower profile and market conditions.
Most lenders require two years of self-employment history. Some allow one year with strong compensating factors.
1099 loans typically have simpler review. Bank statement loans take longer due to deposit analysis across 12-24 months.