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in Davis, CA
Davis has a high concentration of consultants, researchers, and self-employed professionals. Standard W-2 loans don't work for most of them.
Both 1099 loans and bank statement loans are non-QM products. They skip tax returns and qualify you on actual income flow instead.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms — not your tax returns — to verify income.
This matters because most contractors write off significant expenses. Those deductions kill income on a tax return but don't factor into 1099 qualification.
Bank statement loans qualify you on 12 to 24 months of deposits. Lenders calculate a monthly income average from your actual cash flow.
This product fits business owners and sole proprietors well. If money moves through your accounts consistently, you have a strong case.
The core difference is how income gets documented. 1099 loans use IRS forms. Bank statement loans use deposit history.
Bank statement loans offer more flexibility for borrowers with mixed income streams. 1099 loans are cleaner when all your income is contractor-based and well-documented.
If you get 1099s from one or two steady clients, the 1099 loan is likely cleaner and faster to underwrite.
If you run a business, take owner draws, or have multiple income sources, bank statements tell a more complete story. Talk to us — the right call depends on how your money actually moves.
Some lenders allow combined documentation. Most programs require you to pick one method — we'll find which gives you the stronger qualifying income.
Most non-QM lenders want 10-20% down. Your credit score and income strength affect where you land in that range.
Non-QM rates run higher than conventional. Rates vary by borrower profile and market conditions.
Most programs require 12 months minimum. Some lenders prefer 24 months for a stronger average income calculation.
Most non-QM lenders require at least a 620. Stronger scores get better rates and terms on both products.
1099 loans often underwrite faster when documentation is clean. Bank statement loans take longer if statements need explanation.