Question 1

Can I use both 1099s and bank statements for my loan?

Accepted Answer

Some lenders allow hybrid approaches, but most programs use one primary method. A broker can determine if combining documentation strengthens your application or if one method alone works better.

Question 2

Which program offers better interest rates?

Accepted Answer

Rates vary by borrower profile and market conditions. Both are non-QM products with similar rate ranges. Your credit score, down payment, and overall financial picture impact rates more than program choice.

Question 3

How much down payment do these loans require?

Accepted Answer

Most non-QM programs require 10-20% down, though some allow less with strong profiles. Bank statement loans sometimes need larger down payments than 1099 loans due to income calculation methods.

Question 4

Do I need a business license for these programs?

Accepted Answer

1099 loans don't typically require business licenses since you're working as an independent contractor. Bank statement loans may require business documentation if using business accounts for verification.

Question 5

How long does it take to get approved?

Accepted Answer

Both programs take 30-45 days typically. Bank statement loans may take slightly longer due to detailed deposit analysis. Having organized documentation ready speeds up either process significantly.

1099 Loans vs Bank Statement Loans in El Cerrito: Which Non-QM Option Fits Your Income?