Question 1

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

Accepted Answer

Some lenders allow hybrid documentation. We shop across 200+ wholesale lenders to find who accepts your specific income mix.

Question 2

Which loan has stricter credit requirements?

Accepted Answer

Both are non-QM loans. Most lenders want a 640–680 minimum credit score. Exact requirements vary by lender and loan size.

Question 3

How much down payment do these loans require?

Accepted Answer

Expect 10–20% down for either program. Borrowers with lower scores or shorter income history may need more.

Question 4

Do 1099 loans work if I only have one year of 1099 income?

Accepted Answer

Some lenders accept 12 months. Others want 24. It depends on the lender — we find who fits your timeline.

Question 5

What expense ratio do lenders apply to bank statements?

Accepted Answer

Most lenders use 50% for personal accounts. Business accounts may get a lower ratio, which increases qualifying income.

Question 6

Are interest rates higher on these loans than conventional?

Accepted Answer

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

1099 Loans vs Bank Statement Loans in Fullerton, CA