Question 1

Can I use both 1099 and bank statement documentation together?

Accepted Answer

Some lenders blend both, using 1099s for documented income and bank statements to capture additional cash flow. This combo approach can maximize your qualifying income.

Question 2

Which option has better rates in Hawthorne right now?

Accepted Answer

1099 loans typically price 0.25-0.5% lower than bank statement loans because the income verification is more straightforward. Rates vary by borrower profile and market conditions.

Question 3

Do these loans work for investment properties in Hawthorne?

Accepted Answer

Both work for investment properties, but expect 20-25% down instead of 10-15%. Bank statement loans handle rental income mixed with business income better.

Question 4

How many months of reserves do I need?

Accepted Answer

Most lenders want 6-12 months of mortgage payments in reserves for both programs. Investment properties push that to 12-18 months.

Question 5

Will lenders count deposits from all my bank accounts?

Accepted Answer

For bank statement loans, yes—you can submit multiple accounts to show total cash flow. Just be ready to explain any large or irregular deposits during underwriting.

1099 Loans vs Bank Statement Loans in Hawthorne: Which Fits Your Self-Employed Income?