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in Cotati, CA
Self-employed borrowers in Cotati get rejected by conventional lenders constantly. Your tax returns show too little income — but your bank account tells a different story.
Two non-QM loan types fix this problem: 1099 loans and bank statement loans. Knowing which one fits your income type saves time and gets you to closing faster.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms — not tax returns — to calculate qualifying income.
This matters because most contractors write off expenses heavily. Tax returns show low net income. Your 1099s reflect what clients actually paid you.
Bank statement loans use 12 to 24 months of deposits to verify income. Lenders look at what flows into your accounts, not what the IRS sees.
This works well for business owners whose income mixes personal and business accounts. Lenders typically average your monthly deposits to set your qualifying income.
The core difference is documentation. 1099 loans rely on your earnings forms. Bank statement loans rely on actual cash deposits into your accounts.
1099 loans suit pure contractors paid by clients on 1099s. Bank statement loans suit owners who run revenue through a business or personal account.
If you receive 1099s from clients and keep clean records, start with a 1099 loan. The documentation is straightforward and lenders can move quickly.
If your income flows through a business account — or you run a mix of income streams — bank statements usually show a stronger qualifying picture. We run both scenarios before recommending one.
Some lenders allow it, but most want one primary method. We identify which approach shows the higher qualifying income for your file.
Most lenders require one to two years of 1099s. Consistency across both years strengthens your file significantly.
Either can work. Business statements typically require an expense factor applied to deposits. Personal statements are used at face value.
Yes. Both 1099 and bank statement loans are available in Cotati and throughout Sonoma County. Property type and loan size affect lender options.
Rates vary by borrower profile and market conditions. Generally, the loan with cleaner documentation and stronger income proof gets better pricing.
Most non-QM lenders want at least a 620. Scores above 700 open up better rates on both 1099 and bank statement programs.