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in Watsonville, CA
Most Watsonville self-employed borrowers get turned down by conventional lenders. That's not a credit problem — it's a documentation problem.
Two non-QM loan types solve this: 1099 loans and bank statement loans. Knowing which fits your income is the difference between closing and starting over.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms — not tax returns — to verify what clients actually paid you.
This matters if you write off heavy expenses. Tax returns can slash your qualifying income. Your 1099s show gross earnings before deductions.
Bank statement loans use 12 to 24 months of deposits to calculate your income. Lenders apply an expense ratio and average what's left.
This works for business owners, consultants, and anyone whose money flows through a business or personal account. You don't need a 1099 from any single source.
1099 loans need a clear paper trail from clients who issued those forms. Bank statement loans are more flexible — deposits from multiple sources all count.
Bank statement loans typically offer higher loan amounts because they can capture more income streams. But they require clean, consistent deposit history with no large unexplained gaps.
If you drive for an app, do contract work, or have one or two steady clients issuing 1099s — start there. The documentation is straightforward.
If you own a business, mix client payments with other revenue, or operate through a business account — bank statements will likely capture more of your real income.
Some lenders allow it, but most want one method. A broker can match you to lenders who accept blended documentation.
Yes. Seasonal 1099 workers and farm labor contractors qualify if they show consistent annual income across two years.
Yes, non-QM rates run higher than conventional. Rates vary by borrower profile and market conditions.
Most lenders require 12 months minimum. Twenty-four months gives you a stronger average and better rate options.
Most non-QM lenders want at least a 620. Stronger scores above 680 open more lender options and lower rates.
1099 loans generally close faster — fewer documents to review. Bank statement loans take longer due to deposit analysis.