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in Vallejo, CA
Most Vallejo self-employed buyers hit a wall with conventional loans. Standard lenders want W-2s. Neither a 1099 nor bank deposits qualify as 'real' income to them.
Two non-QM options cut through that problem. Each uses different proof of income — and the right choice depends on how you get paid.
A 1099 loan uses your 1099 forms — not tax returns — to verify income. Lenders typically want 1-2 years of 1099s from the same client or industry.
This loan fits independent contractors, gig workers, and consultants. If your income shows up on 1099-NEC or 1099-MISC forms, this is the cleaner path.
Bank statement loans use 12-24 months of deposits to calculate your income. Lenders apply an expense ratio to your gross deposits to arrive at qualifying income.
Business owners and sole proprietors often do better here. Especially when tax returns show heavy write-offs that make W-2-style income look low.
The core difference is documentation. A 1099 loan reads your contracts and forms. A bank statement loan reads your cash flow. Same borrower, very different proof.
Bank statement loans can qualify higher income — but only if deposits are consistent. A 1099 loan can be cleaner if your 1099 earnings are steady and well-documented.
Pick a 1099 loan if you're a contractor or gig worker with clean 1099 history. Pick a bank statement loan if you own a business with strong deposit volume.
Vallejo buyers who write off most expenses on taxes often benefit more from bank statements. Your deposits tell a better story than your tax return does.
Some lenders allow blended documentation. We check which combination gets you the strongest qualifying income.
Yes. Both loan types can be used for single-family homes, condos, and small multi-unit properties in Vallejo.
Most lenders require 12 months minimum. Some want 24 months for a stronger income picture.
Lenders apply an expense ratio to deposits — not your tax deductions. Heavy write-offs on returns matter less here.
Yes. Non-QM rates run higher than conventional. Rates vary by borrower profile and market conditions.
Most non-QM lenders want a 620-640 minimum. Stronger scores get better pricing on both programs.