Question 1

Can I use both 1099s and bank statements together?

Accepted Answer

Some lenders allow blended documentation. Ask your broker whether combining both methods increases your qualifying income.

Question 2

How many years of 1099s do lenders require?

Accepted Answer

Most lenders want one to two years of 1099s. Two years gives a stronger income average and more lender options.

Question 3

What expense ratio do bank statement lenders use?

Accepted Answer

Common ratios run from 10% to 50% depending on your business type. A lower ratio means more qualifying income.

Question 4

Do these loans work for Laguna Beach purchase prices?

Accepted Answer

Yes, but your documented income needs to support the payment. Both programs can go into jumbo territory.

Question 5

Are rates different between the two loan types?

Accepted Answer

Rates vary by lender, documentation type, and credit profile. Bank statement loans can price slightly higher. Rates vary by borrower profile and market conditions.

1099 Loans vs Bank Statement Loans in Laguna Beach