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in Simi Valley, CA
Self-employed borrowers in Simi Valley often hit a wall with conventional lenders. Two non-QM options solve that problem differently.
Both loans skip the W-2 requirement. But which one fits your income type matters a lot.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms — not bank deposits — to verify income.
This works best if your clients pay you on 1099s consistently. One or two years of forms is usually enough to qualify.
Bank statement loans use 12 to 24 months of deposits to calculate your income. No 1099s or tax returns needed.
This is the go-to for business owners whose deposits tell a stronger story than their tax returns do.
The core difference is how income gets calculated. 1099 loans use your gross 1099 earnings. Bank statement loans use your average monthly deposits.
If your tax write-offs push your taxable income way down, bank statement loans often qualify you for more. Contractors with clean 1099s and fewer deductions may do better with the 1099 route.
You're a freelancer or contractor in Simi Valley paid exclusively on 1099s? Start with the 1099 loan. It's simpler and the income docs are straightforward.
You run a business with strong cash flow but aggressive deductions? Bank statement loans are made for you. Lenders look at what hits your account, not what the IRS sees.
Some lenders allow blended documentation. A broker can shop programs across multiple lenders to find one that accepts your mix.
Both are non-QM loans. Most lenders want at least 620-640. Stronger credit gets you better pricing on either option.
Yes. Non-QM lenders set their own loan limits, often well above conforming caps. Your income qualification is the bigger factor.
Most non-QM programs require 10-20% down. Lower down payments are possible but usually come with higher rates.
They're different, not necessarily harder. The documentation requirements are simpler for self-employed borrowers than conventional loans.
Typically 21-30 days. Having your bank statements or 1099s ready upfront keeps the process moving.