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in Saratoga, CA
Saratoga attracts high-earning self-employed buyers. Most don't fit the W-2 mold lenders prefer.
Two non-QM options work well here: 1099 loans and bank statement loans. Knowing the difference saves you time and money.
1099 loans qualify you using your 1099 forms. Lenders average one to two years of 1099 income.
This works best for contractors and freelancers with clean 1099 records. You don't need bank statements at all.
Bank statement loans use 12 to 24 months of deposits to calculate your income. Lenders apply an expense ratio to your gross deposits.
Business owners with high deposits but low taxable income often qualify for more here. The deposit history tells the real income story.
1099 loans read your earnings directly from income forms. Bank statement loans back-calculate income from deposits minus expenses.
Bank statement loans carry more flexibility for complex income. But they require more documentation and typically come with slightly higher rates.
You're a fit for a 1099 loan if you freelance or contract and get paid on 1099s. Your income is straightforward and well-documented.
Choose a bank statement loan if you run a business with overhead, write-offs, or mixed income streams. Your deposits show more income than your tax returns do.
Some lenders allow blended documentation. We shop across 200+ wholesale lenders to find programs that accept your specific income mix.
1099 loans often price slightly better than bank statement loans. Rates vary by borrower profile and market conditions.
Yes. Both are non-QM and can go above conforming limits. Loan amounts depend on your verified income and the lender's guidelines.
Most lenders want a 680 or higher for non-QM loans. Stronger credit gets you better rates on both programs.
Expect 10% to 20% down minimum on most non-QM programs. Larger down payments can improve your rate and approval odds.
Non-QM loans typically close in 21 to 30 days. Gathering your bank statements or 1099s early speeds that up.