Question 1

Can I use both 1099 and bank statement income together?

Accepted Answer

Most lenders pick one method per loan. We can run scenarios both ways to see which delivers better qualification. Rates vary by borrower profile and market conditions.

Question 2

Do these loans cost more than conventional mortgages?

Accepted Answer

Yes, expect rates 0.5-2% higher than conventional. The trade-off is qualifying without W-2 income verification. Both non-QM options price similarly.

Question 3

How far back do lenders look at my 1099s or bank statements?

Accepted Answer

1099 loans typically use one to two years of tax returns. Bank statement loans need 12-24 months of consecutive statements with no gaps.

Question 4

Which option works better for Pacific Grove's coastal property prices?

Accepted Answer

Both handle higher price points fine. Your income documentation strength matters more than location. We shop 200+ lenders to find the best rate for either path.

Question 5

Can I qualify if my business is less than two years old?

Accepted Answer

Bank statement loans sometimes work with 12 months of deposits. 1099 loans usually need two years of filing history. Some lenders accept less with strong compensating factors.

1099 Loans vs Bank Statement Loans in Pacific Grove: Which Fits Your Business?