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in Oxnard, CA
Most Oxnard self-employed borrowers get turned down by conventional lenders. Not because they can't afford the home — because their tax returns don't show enough income.
Two non-QM loan types solve this: 1099 loans and bank statement loans. Both skip the W-2. But they work very differently.
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 very little. Your 1099s show gross income. That's a stronger number than what your Schedule C reports.
Bank statement loans use 12 to 24 months of deposits to prove income. Lenders average your deposits and apply an expense ratio to estimate earnings.
This works well for business owners who run revenue through a business account. High gross deposits can qualify you even with heavy deductions on paper.
The core difference is documentation. 1099 loans use your earnings forms. Bank statement loans use deposit history. Neither touches your tax return.
Bank statement loans apply an expense ratio — often 50% on business accounts. That reduces your qualifying income. 1099 loans typically use a higher percentage of what you earned.
If you're a contractor or freelancer paid via 1099 with modest write-offs, the 1099 loan will likely qualify you for more. Your gross earnings work in your favor.
If you own a business, run revenue through a company account, and write off aggressively, bank statements may be your only viable path. Talk to us — we've placed both in Ventura County.
Some lenders allow a hybrid approach, but most require one method. We'll run your numbers both ways to see which qualifies you for more.
Non-QM loans typically require more down than conventional. Exact requirements vary by lender and borrower profile.
Most non-QM lenders want at least a 620. Stronger scores get better pricing on both loan types.
Yes. Non-QM loans carry higher rates than conventional. Rates vary by borrower profile and market conditions.
Most lenders want one to two years of 1099 forms. Consistency of income across those years matters to underwriters.
Yes, though some lenders prefer business accounts. Personal accounts may receive a different expense ratio calculation.