Question 1

Can I use both 1099 and bank statement income on the same loan?

Accepted Answer

No, lenders pick one income verification method per loan. You cannot blend 1099 forms with bank statement analysis in a single approval.

Question 2

Which option closes faster in Arroyo Grande?

Accepted Answer

1099 loans typically close 3-5 days faster because tax returns are simpler to verify than 24 months of bank statements. Both usually close within 30 days.

Question 3

Do both loan types work for investment properties?

Accepted Answer

Yes, but bank statement loans offer better terms for multi-unit buildings. 1099 programs often cap at four units with tighter reserve requirements.

Question 4

What if I have both W-2 and 1099 income?

Accepted Answer

You can blend W-2 wages with 1099 income on either loan type. Lenders verify W-2 income separately and add it to your self-employed calculation.

Question 5

Which program allows lower credit scores?

Accepted Answer

1099 loans accept 640 credit scores with compensating factors. Bank statement loans typically require 680 minimum, though some lenders go to 660.

1099 Loans vs Bank Statement Loans in Arroyo Grande: Which Fits Your Income Structure?