Question 1

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

Accepted Answer

Some lenders allow combined documentation. A broker can identify which approach — or combination — produces the highest qualifying income for your profile.

Question 2

Do these loans require a higher down payment?

Accepted Answer

Most non-QM lenders require at least 10% down, sometimes more. Your credit score and loan size will influence the exact requirement.

Question 3

How many months of bank statements do I need?

Accepted Answer

Most lenders require 12 months minimum. Some require 24. More history generally gives lenders more confidence in your income stability.

Question 4

What credit score do I need for either loan?

Accepted Answer

Most non-QM lenders want at least a 620. Stronger scores above 680 will get you better pricing on either program.

Question 5

Do these loans work for Eureka investment properties?

Accepted Answer

Yes, both programs can be used for investment properties. Expect stricter terms and a larger down payment than for a primary residence.

Question 6

Are 1099 loans harder to find than bank statement loans?

Accepted Answer

Both are non-QM products, so you won't find them at most retail banks. A wholesale broker with access to non-QM lenders is your best path to either one.

1099 Loans vs Bank Statement Loans in Eureka, CA