Question 1

Can I use both 1099s and bank statements together?

Accepted Answer

Some lenders allow blended documentation. It depends on the lender's guidelines and your income structure.

Question 2

Which loan has the lower interest rate?

Accepted Answer

Rates vary by borrower profile and market conditions. Neither loan type is guaranteed to be cheaper than the other.

Question 3

Do these loans work for Chico rental property purchases?

Accepted Answer

Both can be used for investment properties. Lender guidelines on property type and reserves will apply.

Question 4

What credit score do I need for these loans?

Accepted Answer

Most non-QM lenders want at least a 620. Stronger scores get better pricing on both loan types.

Question 5

How much down payment is required?

Accepted Answer

Expect a minimum of 10% down for most non-QM programs. Higher loan-to-value ratios typically require stronger credit.

Question 6

What if my 1099 income varies year to year?

Accepted Answer

Inconsistent 1099 income can hurt your qualifying average. A bank statement loan may work better in that case.

1099 Loans vs Bank Statement Loans in Chico