Question 1

Can I use both 1099s and bank statements on the same loan application?

Accepted Answer

Generally, lenders require you to choose one income verification method. However, a broker can help determine which approach shows your income most favorably for your Paso Robles home purchase.

Question 2

Do these loans have higher interest rates than conventional mortgages?

Accepted Answer

Non-QM loans like these typically carry slightly higher rates than conventional financing due to flexible qualification standards. Rates vary by borrower profile and market conditions.

Question 3

How far back do lenders look at my 1099s or bank statements?

Accepted Answer

Most lenders require 12-24 months of documentation. Two years is standard for 1099 loans, while bank statement loans may accept 12 months for established businesses with strong cash flow.

Question 4

What credit score do I need for these programs in San Luis Obispo County?

Accepted Answer

Minimum credit scores typically start around 620-640 for both programs. Higher scores improve your rate and terms. Some lenders may require higher scores depending on other risk factors.

Question 5

Can I buy investment property with these loan types?

Accepted Answer

Yes, both programs work for investment properties in Paso Robles. Down payment requirements increase for non-owner-occupied purchases, typically starting at 20-25% for rental properties.

1099 Loans vs Bank Statement Loans in Paso Robles: Which Self-Employment Option Fits You?