Question 1

Can I use both 1099s and bank statements together?

Accepted Answer

No, lenders choose one income calculation method per loan. You'll qualify using either 1099 forms or bank statements, not a combination of both.

Question 2

Which option gets better interest rates in Covina?

Accepted Answer

1099 loans typically price better because the income documentation is cleaner. Bank statement loans carry more risk for lenders, so rates run 0.5-1.5% higher.

Question 3

Do I need two years of self-employment for either loan?

Accepted Answer

Most lenders want 24 months, but some accept 12 months of history. Shorter self-employment history usually means higher rates or larger down payments.

Question 4

What credit score do I need for these loans?

Accepted Answer

Minimum scores start around 620 for both programs. Better rates kick in at 680+, and you'll see the best pricing above 720.

Question 5

Can I buy investment property in Covina with these loans?

Accepted Answer

Yes, both loan types work for investment properties. Expect higher down payment requirements, typically 20-25% for non-owner-occupied purchases.

1099 Loans vs Bank Statement Loans in Covina: Which Income Documentation Path Works for You?