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in Santa Cruz, CA
Santa Cruz runs on self-employed income. Freelancers, contractors, and business owners need loans that match how they actually earn.
Both 1099 loans and bank statement loans skip W-2s entirely. The difference is how each one documents your income.
1099 loans use your 1099 forms to verify income. Lenders typically look at one to two years of 1099s from your clients or platforms.
This works best if your gross 1099 income is consistent. Gig workers and independent contractors are the core borrowers here.
Bank statement loans use 12 to 24 months of deposits to calculate income. Your actual cash flow drives the qualifying number.
Business owners who write off heavy expenses benefit most. Tax returns often understate real income — bank statements show the full picture.
1099 loans rely on forms issued to you. Bank statement loans rely on deposits flowing through your accounts. Different paper trails, different borrowers.
Business owners with LLCs or S-corps usually fit bank statement loans better. Sole-prop contractors with clean 1099s often qualify more simply.
If you receive 1099s directly from clients and your gross income is strong, start there. The documentation is clean and straightforward.
If you own a business with high write-offs, bank statements will show more income than your tax returns ever could. That matters a lot in a high-priced market like Santa Cruz.
Some lenders allow combined documentation. Ask us which lenders in our network accept blended income verification.
Non-QM loans often require 10-20% down. Exact requirements depend on credit score and the specific lender.
Yes, Non-QM loans carry a rate premium over conventional. Rates vary by borrower profile and market conditions.
Requirements vary by lender, but most Non-QM programs want at least a 620-640 score. Some go lower with more down.
Non-QM loans can take 21-30 days. Having clean bank statements or 1099s ready speeds the process significantly.
Yes. Both loan types can be used for investment purchases. Lender terms and rates will differ from owner-occupied deals.