Loading
in Woodland, CA
Both loans serve self-employed borrowers who can't use W-2s to prove income. They're both non-QM — meaning they operate outside standard lending rules.
The difference is how each loan reads your income. That single detail changes who qualifies and what they can borrow.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms — not tax returns — to calculate income.
This matters because most contractors write off expenses, which tanks their taxable income. Your 1099 reflects what you actually earned.
Bank statement loans use 12 to 24 months of deposits to prove income. Lenders average your deposits and apply an expense ratio.
This works well for self-employed borrowers whose money flows through a business or personal account — not through 1099 clients specifically.
Local decision guide
Use this comparison to weigh 1099 Loans and Bank Statement Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Woodland.
Both loans serve self-employed borrowers who can't use W-2s to prove income. They're both non-QM — meaning they operate outside standard lending rules.
The difference is how each loan reads your income. That single detail changes who qualifies and what they can borrow.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms — not tax returns — to calculate income.
1099 loans require 1099 income specifically. If your income comes from clients paying you directly without issuing 1099s, this loan won't work.
Bank statement loans are broader. They don't care how your income is classified — they look at cash flow in and out of your accounts.
If you're a freelancer or contractor with consistent 1099 clients, the 1099 loan is usually cleaner. Less documentation, clearer income story.
If your income is mixed — some 1099, some direct deposits, some business revenue — bank statements give you more flexibility.
Some lenders allow it, but most require you to pick one method. A broker can tell you which gives you the higher qualifying income.
Yes, non-QM loans carry higher rates than conventional. Rates vary by borrower profile and market conditions.
Most lenders want 12 months minimum. Some programs require 24 months for a stronger income average.
Most non-QM lenders require at least a 620 score. Stronger scores get better rates on both products.
Yes. Both 1099 and bank statement loans are available throughout Yolo County, including Woodland.
It depends on your income structure. There's no universal answer — your documents tell the story.