Question 1

Can I use both 1099s and bank statements together?

Accepted Answer

Some lenders allow blended documentation. A broker can structure your file using whichever method produces the higher qualifying income.

Question 2

Do either of these loans require tax returns?

Accepted Answer

No. Both programs are non-QM and skip the tax return requirement entirely. That's the main reason self-employed borrowers use them.

Question 3

Are rates higher on these loans than conventional?

Accepted Answer

Yes. Non-QM loans carry higher rates than conventional. Rates vary by borrower profile and market conditions.

Question 4

How many months of 1099s do lenders want?

Accepted Answer

Most lenders want 12 to 24 months of 1099 forms. Two years gives you a stronger file and a more stable income average.

Question 5

What credit score do I need for either program?

Accepted Answer

Most non-QM lenders want at least a 620 credit score. Stronger scores get you better pricing on both 1099 and bank statement loans.

Question 6

Which loan closes faster in Calipatria?

Accepted Answer

Timelines are similar. What slows closings is incomplete documentation. Have your 1099s or statements organized before you apply.

1099 Loans vs Bank Statement Loans in Calipatria, CA