Question 1

Can I qualify for both loan types?

Accepted Answer

Some borrowers qualify under either program. We run scenarios on both to see which produces the higher qualifying income.

Question 2

Do these loans require perfect credit?

Accepted Answer

No, but stronger credit gets better pricing. Most non-QM lenders want at least a 620 score, though some go lower.

Question 3

How many months of statements do I need?

Accepted Answer

Bank statement loans require 12 to 24 months. Most lenders prefer 24 months for a stronger income average.

Question 4

Will my tax write-offs hurt me on a 1099 loan?

Accepted Answer

No. That's the point of a 1099 loan. Your gross 1099 income is used, not your taxable income after deductions.

Question 5

Are rates higher than conventional loans?

Accepted Answer

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

Question 6

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

Accepted Answer

Yes. Lenders apply an expense ratio to business deposits. Personal accounts are used at full deposit value.

1099 Loans vs Bank Statement Loans in Hollister