Frequently Asked Questions
Iâm a self-employed electrician or plumber in the AI construction boom â whatâs the single most important thing I should know about my mortgage options?
Your Schedule C is not your income for Non-QM mortgage purposes. A bank statement loan qualifies on your actual deposits and a 1099 loan qualifies on your gross contractor earnings. Your tax return, your write-offs, and your accountantâs optimization are all irrelevant to Non-QM income qualification.
Whatâs the most important step I should take right now as a self-employed trades worker to improve my mortgage situation?
Check your credit score across all three bureaus. Pay down revolving credit card balances below 20% utilization. Do not open new credit accounts in the 90 days before applying. A 720+ credit score is the single most controllable variable in your Non-QM loan cost.
How do I choose between a bank statement loan and a 1099 loan as a self-employed trades worker?
Model both with a Non-QM loan officer. If your gross 1099 income roughly matches your bank deposits, the 1099 loan usually wins â no expense ratio applied. If your bank deposits are significantly higher than your 1099 income, the bank statement loan may capture more. The right choice is whichever produces higher qualifying income for your specific income structure.
Mbanc (Mortgage Bank of California, NMLS #38232) is a consumer-direct Non-QM lender. This content is for informational purposes only and does not constitute a commitment to lend. All loans subject to credit approval.
Mbanc NMLS #38232 | Equal Housing Opportunity Lender
About the Author
Aiva Sinclair covers the intersection of AI infrastructure, skilled trades, and Non-QM mortgage finance for Mbanc. Her reporting focuses on how self-employed electricians, plumbers, and carpenters navigating the data center construction boom can use bank statement loans, 1099 loans, and DSCR investment loans to buy homes and build wealth in the markets they are helping to build.
Contact: sales@mbanc.com | mbanc.com/non-qm-trades
