Question 1

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

Accepted Answer

Most lenders pick one documentation path per loan. We test both methods during pre-approval to see which shows stronger qualifying income for your situation.

Question 2

Do these loans require larger down payments than conventional?

Accepted Answer

Most non-QM programs start at 10-15% down, with better pricing at 20% or higher. Conventional loans can go as low as 3% down for comparison.

Question 3

How do lenders calculate income from mixed 1099 and W-2 earnings?

Accepted Answer

If you have both income types, lenders typically use W-2 income at face value and add 1099 income using their standard calculation. Bank statement loans might work better for truly mixed situations.

Question 4

Will writing off business expenses hurt my mortgage approval?

Accepted Answer

Tax deductions reduce qualifying income on 1099 loans and conventional mortgages. Bank statement loans bypass that problem by looking at deposits instead of tax returns.

Question 5

What credit score do I need for these programs in Vernon?

Accepted Answer

Most 1099 programs start at 620 credit. Bank statement loans can go as low as 600, though rates improve significantly at 680 and above.

1099 Loans vs Bank Statement Loans in Vernon: Which Income Doc Path Fits Your Business?