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in Benicia, CA
Most Benicia self-employed buyers get turned away by conventional lenders. Their income is real — it just doesn't fit a W-2 box.
Two non-QM loan types solve this problem differently. Knowing which one fits your income structure saves time and money.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms to verify income — not your tax returns.
This matters because most contractors write off expenses heavily. Tax returns show low income. Your 1099s show what you actually earned.
Bank statement loans use 12 to 24 months of deposits to calculate income. Lenders look at cash flow, not what the IRS sees.
This works well for business owners who mix personal and business accounts. Lenders apply an expense ratio and use the net deposits as income.
The core difference is your income source. 1099 loans work when you get paid by clients as a contractor. Bank statement loans work when deposits flow through your business or personal accounts.
Bank statement loans are more flexible for complex income. But they require clean, consistent deposit history. 1099 loans are simpler if your 1099s clearly show strong gross income.
If you freelance or contract and receive 1099s from multiple clients, start with a 1099 loan. It's the cleaner path when your 1099s show strong gross income.
If you own a business and run revenue through bank accounts, a bank statement loan usually fits better. Bring 24 months of statements if your income fluctuates.
Some lenders allow hybrid documentation. We can identify which lenders in our network accept combined income verification.
Yes, non-QM loans carry higher rates than conventional financing. Rates vary by borrower profile and market conditions.
Most non-QM lenders require 10% to 20% down. Stronger credit and income docs can improve your down payment options.
Most lenders want a 620 minimum. Scores above 680 get better pricing on both 1099 and bank statement programs.
1099 loans typically have simpler doc reviews. Bank statement loans take longer when lenders must analyze 24 months of deposits.
Yes. Both loan types are available for investment purchases. Expect stricter reserve requirements and higher rates on investment deals.