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in Shasta Lake, CA
Self-employed borrowers in Shasta Lake get turned down by conventional lenders constantly. Not because they lack income — because they can't prove it on a W-2.
Two non-QM options solve that problem differently. Which one fits depends on how you earn and how you document it.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms — typically one to two years — to calculate qualifying income.
This works best when your 1099s show strong gross income. You don't need to explain business expenses or produce bank records.
Bank statement loans use 12 to 24 months of deposits to calculate your income. Lenders apply an expense ratio to your deposits to estimate net earnings.
This fits business owners who run revenue through a business account. It also works for self-employed borrowers whose 1099s don't capture all their income.
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 Shasta Lake.
Self-employed borrowers in Shasta Lake get turned down by conventional lenders constantly. Not because they lack income — because they can't prove it on a W-2.
Two non-QM options solve that problem differently. Which one fits depends on how you earn and how you document it.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms — typically one to two years — to calculate qualifying income.
The core difference is documentation. 1099 loans use tax forms. Bank statement loans use deposit history. Neither requires a tax return.
Bank statement loans apply an expense ratio — often 50% on business accounts. That cuts your qualifying income. 1099 loans typically use a higher percentage of gross income shown on the forms.
If you file as an independent contractor and your 1099s show strong earnings, start there. It's a cleaner file with less documentation.
If you own a business or write off heavy expenses on taxes, bank statements often tell a better income story. We see that a lot with Shasta Lake tradespeople and small business owners.
Some lenders allow it, but most non-QM programs pick one method. We find the best fit based on which document shows higher qualifying income.
Most non-QM lenders want at least a 620. Better scores get better rates — rates vary by borrower profile and market conditions.
Non-QM loans aren't bound by conventional loan limits. Your qualifying income and debt load set the ceiling, not a county cap.
Yes, non-QM rates run higher than conventional. The trade-off is qualifying when traditional lenders say no.
Most lenders require 12 months minimum. Some programs offer better terms with 24 months of clean deposit history.
Yes. Personal statements typically get a smaller expense ratio applied, which can mean more qualifying income for some borrowers.