Question 1

Can I use both 1099s and bank statements?

Accepted Answer

Some lenders allow it, but most require you to pick one method. A broker can identify which lenders in Los Alamitos accept blended documentation.

Question 2

Do these loans require a larger down payment?

Accepted Answer

Yes. Non-QM loans typically require more down than conventional loans. Exact amounts depend on your credit profile and the lender.

Question 3

Are credit score requirements different for each?

Accepted Answer

Both programs generally require a minimum score around 620 to 660. Stronger scores get better pricing on either loan type.

Question 4

Which loan closes faster in Los Alamitos?

Accepted Answer

1099 loans often have simpler doc review. Bank statement loans take longer due to deposit analysis. Both run 3 to 5 weeks typically.

Question 5

What if my 1099 income dropped last year?

Accepted Answer

Lenders may average two years or flag the decline as a risk. A bank statement loan could show stronger current cash flow instead.

Question 6

Can I buy an investment property with either loan?

Accepted Answer

Yes, both are available for investment purchases in Orange County. Rates and reserve requirements will be higher than for a primary home.

1099 Loans vs Bank Statement Loans in Los Alamitos