Question 1

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

Accepted Answer

Not on the same loan. Lenders pick one income method per file. Your broker helps determine which produces the higher qualifying income.

Question 2

Do these loans have higher rates than conventional?

Accepted Answer

Yes, non-QM loans carry higher rates than conventional. Rates vary by borrower profile and market conditions.

Question 3

How much do I need for a down payment?

Accepted Answer

Most 1099 and bank statement loans require 10-20% down. Stronger credit and reserves can improve your terms.

Question 4

What credit score do I need for either loan?

Accepted Answer

Most lenders want at least a 620-640 score for non-QM programs. Higher scores open more lender options and better pricing.

Question 5

How many months of bank statements do lenders want?

Accepted Answer

Typically 12 or 24 months. Twenty-four months gives lenders more confidence and may improve your qualifying income average.

Question 6

Can I buy in Brea with a non-QM loan?

Accepted Answer

Yes. Non-QM loans have no geographic restriction. Loan limits depend on the lender and your borrower profile.

1099 Loans vs Bank Statement Loans in Brea, CA