Question 1

Can I use both programs together?

Accepted Answer

No. You pick one income documentation method per loan. A broker can run your numbers both ways to see which qualifies higher.

Question 2

Do these loans cost more than conventional loans?

Accepted Answer

Yes, non-QM pricing runs higher than conventional. Rates vary by borrower profile and market conditions.

Question 3

How many months of 1099s do I need?

Accepted Answer

Most lenders want one to two years of 1099s. Consistency across those years matters more than peak income in one year.

Question 4

What credit score do I need for these programs?

Accepted Answer

Most non-QM lenders want at least a 620. Better rates typically start at 680 or higher.

Question 5

What expense ratio do bank statement lenders use?

Accepted Answer

It varies — commonly 50% for business accounts. A personal account deposit may qualify at a higher percentage.

Question 6

Which program is more common in Vista?

Accepted Answer

Both are active in San Diego County. Vista has a strong contractor and small-business base, so we see both regularly.

1099 Loans vs Bank Statement Loans in Vista, CA