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in Suisun City, CA
Self-employed borrowers in Suisun City have two solid non-QM options for proving income without W-2s. Both work when you can't qualify conventionally, but they pull from different documentation and serve different business structures.
Your choice depends on how clean your 1099 forms look versus what shows in your bank deposits. One values reported income, the other values cash flow.
1099 loans use your IRS 1099 forms to verify income. Lenders calculate qualifying income from what clients actually paid you. This works best if you reported most of your earnings and didn't write off everything.
You typically need two years of 1099s showing consistent income from multiple clients. Lenders want to see diversified income streams, not just one client making up 80% of your revenue.
Bank statement loans ignore tax returns completely. Lenders analyze 12 to 24 months of business or personal bank deposits to calculate income. They average your deposits and apply an expense ratio based on your industry.
This route shines when you took legitimate business deductions that crushed your taxable income. Lenders see the money coming in before expenses hit. Expect rates about 0.5% to 1% higher than 1099 loans because documentation is less standardized.
The core split is what documentation you provide. 1099 loans need organized tax forms showing client payments. Bank statement loans need consistent deposits in business accounts with minimal NSFs or overdrafts.
Income calculation differs completely. 1099 lenders add up reported income and apply standard ratios. Bank statement lenders average deposits, then subtract estimated expenses using industry benchmarks—usually 25% to 50% depending on your business type.
Choose 1099 loans if your tax returns show strong reported income and you work with multiple clients. This path offers better rates and cleaner underwriting when your 1099s tell a good story.
Go bank statement if you wrote off most income through legitimate business expenses or if your 1099 income looks inconsistent. Expect to provide 12 months minimum of statements with regular deposits. Rates vary by borrower profile and market conditions.
No, lenders pick one documentation method per loan file. Mixing creates underwriting conflicts since the income calculations don't align.
1099 loans typically close 3-5 days faster because the documentation is more standardized. Bank statement underwriting takes longer to verify deposits and calculate income.
Not always required but helps strengthen your file. Some lenders want to see you're operating as a legitimate business, especially for bank statement loans.
Both programs typically require 620 minimum, though 680+ gets you better pricing. Bank statement loans sometimes accept 600 if you put 25% down.
Yes, if you operate as a sole proprietor depositing business income into personal accounts. Lenders just need to see the business deposits clearly separated from personal transfers.