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in Petaluma, CA
Petaluma has a strong base of freelancers, contractors, and self-employed professionals. Traditional lenders won't touch their income — but two non-QM options can.
Both 1099 loans and bank statement loans skip the W-2 entirely. The difference is how they verify what you actually earn.
1099 loans use your 1099 forms — typically 1 to 2 years — to document income. Lenders apply an expense factor to calculate qualifying income.
This works best for contractors and gig workers with clean 1099 history. If your income comes from one or two consistent clients, this path is often simpler.
Bank statement loans use 12 or 24 months of deposits to build an income picture. Lenders average your deposits and apply an expense ratio.
This fits self-employed borrowers who run a business, mix personal and business income, or write off heavily on taxes. Your tax return doesn't define your income here.
Local decision guide
Use this comparison to weigh 1099 Loans and Bank Statement Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Petaluma.
Petaluma has a strong base of freelancers, contractors, and self-employed professionals. Traditional lenders won't touch their income — but two non-QM options can.
Both 1099 loans and bank statement loans skip the W-2 entirely. The difference is how they verify what you actually earn.
1099 loans use your 1099 forms — typically 1 to 2 years — to document income. Lenders apply an expense factor to calculate qualifying income.
The core split is documentation. 1099 loans need your 1099s. Bank statement loans need your deposit history. Your income type drives which fits.
Bank statement loans typically allow higher qualifying income for borrowers with strong deposits. 1099 loans can be more restrictive if your forms show inconsistent earnings.
Pick a 1099 loan if you're a straight contractor — consistent clients, clean 1099 forms, minimal business overhead. It's faster and simpler to document.
Choose bank statements if you run a business, have mixed income sources, or your tax returns dramatically understate your actual cash flow. Petaluma business owners often land here.
Some lenders allow a hybrid approach. Most non-QM lenders want one primary method — ask your broker which produces the higher qualifying income.
Most non-QM lenders want at least a 620. Stronger scores get better rates. Rates vary by borrower profile and market conditions.
Expect 10-20% down for most non-QM products. Higher loan amounts or lower credit scores often require more down.
Yes. Both programs can be used for investment properties, though down payment and rate requirements differ from primary residence loans.
Lenders average two years of 1099 income. A sharp drop in year two can hurt qualification — bank statements may tell a better story in that case.
Non-QM rates run higher than conventional. The trade-off is qualifying on actual income, not tax-reduced income. Rates vary by borrower profile and market conditions.