Question 1

Can I use both 1099s and bank statements together?

Accepted Answer

Some lenders allow it, but most pick one method. We'll run your numbers both ways to find the higher qualifying income.

Question 2

Do these loans require perfect credit?

Accepted Answer

No. Most non-QM lenders accept scores in the 620-660 range. Higher scores still get better rates. Rates vary by borrower profile and market conditions.

Question 3

How much do I need for a down payment?

Accepted Answer

Expect 10-20% down for most non-QM programs. The exact amount depends on credit score, loan size, and lender guidelines.

Question 4

Which loan closes faster in Palm Desert?

Accepted Answer

1099 loans typically have a simpler review. Bank statement loans take longer because lenders analyze months of deposits.

Question 5

Are interest rates higher on these loans than conventional?

Accepted Answer

Yes, non-QM rates run higher than conventional. Rates vary by borrower profile and market conditions — we shop multiple lenders to minimize that gap.

Question 6

What if my 1099 income varies year to year?

Accepted Answer

Lenders average it or use the lower year. If income dropped, a bank statement loan using recent deposits may qualify you for more.

1099 Loans vs Bank Statement Loans in Palm Desert