Question 1

Can I use both 1099s and bank statements together?

Accepted Answer

Some lenders allow combined documentation. A broker can identify which lenders in our network accept blended income verification.

Question 2

Which loan has stricter credit requirements?

Accepted Answer

Both typically require a minimum 620 credit score. Rates improve significantly at 680 and above. Rates vary by borrower profile and market conditions.

Question 3

How much do I need for a down payment?

Accepted Answer

Most non-QM lenders require 10% to 20% down for either loan type. Lower credit scores usually require more down.

Question 4

Do these loans cost more than conventional loans?

Accepted Answer

Yes. Non-QM rates run higher than conventional. The tradeoff is qualification flexibility for borrowers who can't use standard income docs.

Question 5

How many months of bank statements do I need?

Accepted Answer

Most lenders want 12 months minimum. Some require 24 months for better terms or higher loan amounts.

Question 6

Can I buy an investment property in Madera with these loans?

Accepted Answer

Yes, both loan types can be used for investment properties. Expect stricter reserve requirements and potentially higher rates.

1099 Loans vs Bank Statement Loans in Madera