Question 1

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

Accepted Answer

Some lenders allow hybrid documentation. We identify which lenders in our network offer that option for San Diego borrowers.

Question 2

Do these loans require a higher down payment?

Accepted Answer

Non-QM loans typically require more down than conventional. Requirements vary by lender and your credit profile.

Question 3

How does the expense ratio work on bank statement loans?

Accepted Answer

Lenders deduct a set percentage from gross deposits to estimate expenses. A lower expense ratio means more qualifying income.

Question 4

Which loan has better rates — 1099 or bank statement?

Accepted Answer

Rates vary by borrower profile and market conditions. Neither type is always cheaper — your credit score and down payment move rates more than the doc type.

Question 5

Do I need two years of self-employment history for either loan?

Accepted Answer

Most lenders want at least two years of self-employment. Some Non-QM lenders accept 12 months with strong compensating factors.

Question 6

Are these loans available for investment properties in San Diego?

Accepted Answer

Yes. Both loan types can be used for primary homes and investment properties. Investor pricing and down payment requirements differ.

1099 Loans vs Bank Statement Loans in San Diego