Question 1

Can I use both 1099s and bank statements to qualify?

Accepted Answer

Some lenders allow hybrid documentation. Most require you to pick one method. We'll match you to lenders that fit your income profile.

Question 2

Which loan has lower rates — 1099 or bank statement?

Accepted Answer

Both carry non-QM pricing above conventional rates. The difference between them is usually small. Rates vary by borrower profile and market conditions.

Question 3

How many years of 1099s do I need?

Accepted Answer

Most lenders want 1 to 2 years of 1099s. Two years gives you more lender options and stronger qualifying income.

Question 4

Do bank statement loans work for sole proprietors?

Accepted Answer

Yes. Personal bank statements work well for sole proprietors. Business accounts work too, but lenders apply an expense ratio to deposits.

Question 5

What credit score do I need for either loan?

Accepted Answer

Most non-QM lenders in these programs want at least a 620. Better rates start showing up at 680 and above.

Question 6

Can these loans cover Fremont's higher purchase prices?

Accepted Answer

Yes. Both programs go well into jumbo territory. Loan limits depend on the lender and your qualifying income.

1099 Loans vs Bank Statement Loans in Fremont