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in Rohnert Park, CA
Both 1099 and bank statement loans serve self-employed borrowers in Rohnert Park who can't qualify with tax returns. The right choice depends on how you structure your business income and what shows up in your accounts.
Most self-employed borrowers underwrite their income on tax returns to minimize liability. These non-QM options let you qualify without proving income the traditional way, but they work differently.
1099 loans use your IRS 1099 forms to verify income without requiring full tax returns. Lenders calculate qualifying income by averaging your 1099 earnings over 12 to 24 months.
This works well if you receive consistent 1099 income but write off most of it through deductions. You need organized 1099 records and stable contract work to qualify.
Bank statement loans analyze deposits in your business or personal accounts over 12 to 24 months. Lenders typically use 50-75% of average monthly deposits as qualifying income depending on your business expenses.
This program works for any self-employed structure including sole proprietors, LLCs, and S-corps. You need consistent deposits and clean bank records without frequent NSF fees or negative balances.
The biggest difference is documentation format. 1099 loans require organized tax forms from clients while bank statement loans only need account records your bank provides automatically.
Bank statement loans typically accept lower credit scores starting around 620 versus 640+ for most 1099 programs. Rate pricing runs similar on both, though bank statement loans offer more lender options in Rohnert Park.
Choose 1099 loans if you work as an independent contractor receiving consistent 1099 forms from a handful of clients. This program makes sense when your income documentation is already organized through client reporting.
Pick bank statement loans if you run a business with multiple revenue streams, accept cash or check deposits, or want more lender competition. This option also works better if your 1099 income fluctuates or you mix W-2 and contract work.
Most lenders require you to pick one income calculation method. Some allow blending if you have W-2 income plus self-employment, but not both self-employed methods together.
Rates run nearly identical between these programs since both are non-QM. Your credit score and down payment affect pricing more than which income documentation you use.
Both typically require 10-20% down depending on credit and property type. Expect 15% minimum for competitive rates on either program.
Most lenders require 12 months minimum, with 24 months preferred for stronger approval. Longer history improves your qualifying income calculation.
Yes, bank statement loans work with personal accounts. Lenders apply higher expense factors around 50% to account for mixed-use deposits compared to business-only accounts.