Question 1

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

Accepted Answer

Some lenders allow a blended approach. Most will pick one method — your broker should run both scenarios to see which shows stronger income.

Question 2

Do these loans have higher rates than conventional?

Accepted Answer

Yes. Non-QM loans carry a rate premium over conventional financing. 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 in Cypress require 10-20% down. Higher down payments can help offset lower credit scores or irregular income.

Question 4

What credit score do I need for either loan?

Accepted Answer

Most lenders want at least a 620-640 for non-QM programs. Stronger scores unlock better terms on both loan types.

Question 5

Can I use a business bank account for the bank statement loan?

Accepted Answer

Yes. Lenders will apply an expense ratio to business deposits. Personal accounts typically receive a higher income factor.

Question 6

Which loan closes faster in Cypress?

Accepted Answer

1099 loans often move faster — fewer documents to source and review. Bank statement loans require more underwriter time on deposit history.

1099 Loans vs Bank Statement Loans in Cypress, CA