Question 1

Can I use both 1099s and bank statements together?

Accepted Answer

No — lenders require you to pick one method. Your broker should run both scenarios to see which produces higher qualifying income.

Question 2

What credit score do these loans require?

Accepted Answer

Most non-QM lenders want at least a 620 for either product. Better scores get better pricing. Rates vary by borrower profile and market conditions.

Question 3

How much do I need for a down payment?

Accepted Answer

Expect at least 10% down for either loan. Some lenders require 20% at lower credit scores. LTV requirements vary by lender.

Question 4

Do tax write-offs hurt me on a 1099 loan?

Accepted Answer

No. That's the point. Lenders use your 1099 gross income — not taxable income. Heavy Schedule C deductions don't reduce your qualifying number.

Question 5

Are rates higher on these loans than conventional?

Accepted Answer

Yes. Non-QM pricing runs above conventional. The trade-off is qualifying when traditional docs won't work. Rates vary by borrower profile and market conditions.

Question 6

Which loan closes faster in Alpine County?

Accepted Answer

1099 loans typically have a lighter doc load and can move faster. Bank statement files take longer to process due to the deposit analysis required.

1099 Loans vs Bank Statement Loans in Markleeville

1099 Loans vs Bank Statement Loans in Markleeville