Question 1

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

Accepted Answer

Some lenders allow it, but most non-QM programs pick one method. Your broker will structure the file around whichever shows stronger income.

Question 2

Do these loans require a large down payment?

Accepted Answer

Non-QM loans typically require 10-20% down. The exact amount depends on your credit score and the lender's program guidelines.

Question 3

Are rates higher than conventional loans?

Accepted Answer

Yes. Non-QM loans carry a rate premium over conventional financing. Rates vary by borrower profile and market conditions.

Question 4

How many months of bank statements do I need?

Accepted Answer

Most lenders want 12 months minimum. Some programs require 24 months for stronger income averaging and better pricing.

Question 5

What credit score do I need for either loan?

Accepted Answer

Most non-QM lenders want at least a 620. Better scores get better rates — 680 and above opens more program options.

Question 6

Which loan closes faster in Avenal?

Accepted Answer

1099 loans typically have simpler documentation. Fewer moving parts usually means a faster review and closing timeline.

1099 Loans vs Bank Statement Loans in Avenal, CA