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in Santa Paula, CA
Most Santa Paula buyers with self-employment income get rejected by conventional lenders. That's not a credit problem — it's a documentation problem.
Two non-QM loan types fix this: 1099 loans and bank statement loans. Both skip tax returns. They just verify income differently.
1099 loans are built for independent contractors and freelancers. Your 1099 forms — one or two years — stand in for a pay stub.
Lenders calculate your income directly from those forms. This works best when your 1099 income is consistent and well-documented.
Bank statement loans use 12 to 24 months of deposits to verify income. Lenders average your deposits, then apply an expense ratio.
This works well for business owners who run expenses through their accounts. Your write-offs don't kill your qualifying income.
The core difference is income source. 1099 loans look at what clients paid you. Bank statement loans look at what hit your account.
Business owners with heavy deductions usually do better on bank statements. Contractors with clean 1099s often qualify easier with the 1099 route.
If you're a contractor paid by a handful of steady clients, the 1099 loan is the cleaner path. Less documentation, more straightforward underwriting.
If you own a business in Santa Paula and run revenue through a business account, bank statements usually show more income than your tax returns suggest.
Some lenders allow blended documentation. We find the combo that shows the strongest income picture for your file.
Non-QM loans typically carry higher rates than conventional. Rates vary by borrower profile and market conditions.
Most lenders want 12 months minimum. Some require 24 months for better terms or higher loan amounts.
Most non-QM lenders want at least a 620. Stronger scores get better rates on both loan types.
Inconsistent 1099 income can hurt. Bank statements may show steadier cash flow and work better in that case.
Yes. Both loan types apply to purchases in Santa Paula. We work with lenders active in Ventura County.