Question 1

Can I use both 1099 income and bank statements on the same loan?

Accepted Answer

No, lenders use one method or the other. You choose the documentation approach that shows higher qualifying income.

Question 2

Which option gets better rates in Lafayette?

Accepted Answer

1099 loans typically price closer to conventional rates. Bank statement loans run higher due to non-QM underwriting complexity.

Question 3

How far back do lenders look for either option?

Accepted Answer

Most lenders want two years of 1099s or 12-24 months of bank statements. Longer history sometimes helps if recent income dipped.

Question 4

Do both loan types work for investment properties?

Accepted Answer

Yes, both allow rental property purchases in Lafayette. Down payment requirements increase to 20-25% for non-owner occupied properties.

Question 5

Can I switch documentation mid-application?

Accepted Answer

Technically yes, but it restarts underwriting. Choose your documentation strategy before applying to avoid delays and wasted time.

1099 Loans vs Bank Statement Loans in Lafayette: Which Self-Employed Option Wins?