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in Fort Jones, CA
Both 1099 loans and bank statement loans solve the same problem: proving income when you don't have W-2s. The difference is which documents you use and how lenders calculate your qualifying income.
Fort Jones borrowers often work seasonal contracts, own small businesses, or freelance across multiple clients. The loan you choose depends on how you structure your income and what paperwork you actually keep.
1099 loans use your 1099 forms from the past two years to verify income. Lenders look at gross income before expenses, which can be a huge advantage if you write off most of your earnings on tax returns.
You need consistent 1099 income from at least one source. Most programs require 620+ credit and 10-20% down. Rates typically run 0.5-1.5% higher than conventional loans, varying by borrower profile and market conditions.
Bank statement loans analyze 12 or 24 months of personal or business bank deposits. Lenders calculate average monthly income, then apply an expense ratio—usually 25-50%—to account for business costs.
This works when your income flows through accounts but you don't get formal 1099s. You need 10-20% down, 620+ credit, and clean bank records. Rates vary by borrower profile and market conditions but expect similar pricing to 1099 loans.
The main split: 1099 loans use gross income from forms, bank statement loans use net deposits after an expense factor. If you get 1099s and write off little, the 1099 route usually shows higher qualifying income.
Bank statement loans work better when you mix cash payments, varied client sources, or run expenses through the same account as income. They also help if you don't get 1099s at all—common in construction, landscaping, and consulting work around Fort Jones.
Go with 1099 loans if you receive formal 1099s and your gross income is much higher than your taxable income. That gap matters—you'll qualify for a bigger loan using the higher number.
Choose bank statement loans if you mix cash and check payments, work with clients who don't issue 1099s, or keep clean bank records but messy tax returns. This path also works if you're a sole proprietor with business and personal funds flowing through one account.
No. Lenders use one income calculation method per loan. You choose the approach that shows the higher qualifying income based on your documentation.
Not necessarily. You need two years of 1099 income total, but it can come from multiple clients if you stay in the same line of work.
Lenders subtract those during underwriting. Only actual income deposits count—no double-counting transfers or reimbursements.
Rates are similar for both programs. Your credit score and down payment matter more than which document type you use.
Rarely. Most non-QM lenders require two years of self-employment history to prove income stability and approve the loan.