Question 1

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

Accepted Answer

Most lenders pick one method per loan. Some programs combine sources, but you usually get better terms sticking to one income type.

Question 2

Do these loans work for vacation rentals in San Luis Obispo?

Accepted Answer

Yes, both loan types finance investment properties. Down payment requirements increase to 20% or 25% for non-owner-occupied homes.

Question 3

How much income can I qualify for with bank statements?

Accepted Answer

Lenders average your deposits and subtract 25% to 50% for expenses. A $10,000 monthly deposit qualifies as $5,000 to $7,500 income.

Question 4

What if my 1099 income dropped last year?

Accepted Answer

Lenders average the two most recent years. A drop raises questions, but you can still qualify if the trend stays positive overall.

Question 5

Are rates negotiable on non-QM loans?

Accepted Answer

Rates vary by borrower profile and market conditions. Stronger credit and larger down payments lower your rate across all non-QM programs.

1099 Loans vs Bank Statement Loans in San Luis Obispo: Which Fits Your Business?