Question 1

Can I use both 1099s and bank statements together?

Accepted Answer

Some lenders allow blended documentation. Most require you to choose one method per loan application.

Question 2

Do these loans cost more than conventional loans?

Accepted Answer

Non-QM rates run higher than conventional. The tradeoff is qualifying when W-2 income isn't available. Rates vary by borrower profile and market conditions.

Question 3

How many months of bank statements do lenders want?

Accepted Answer

Most lenders require 12 months minimum. Many prefer 24 months for a stronger income picture.

Question 4

What credit score do I need for either loan?

Accepted Answer

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

Question 5

What if my tax returns show a loss but my deposits are strong?

Accepted Answer

Bank statement loans ignore tax returns entirely. Your deposits drive the qualifying income calculation, not your Schedule C.

Question 6

Are these loans available in Humboldt County?

Accepted Answer

Yes. As a non-QM broker with 200+ wholesale lenders, we place both loan types in Humboldt County regularly.

1099 Loans vs Bank Statement Loans in Ferndale, CA