Question 1

Can I use both 1099s and bank statements for my mortgage application?

Accepted Answer

Some lenders allow hybrid approaches, but most require choosing one primary verification method. Your loan officer can determine which single method qualifies you for the best terms based on your documentation.

Question 2

Do these loans have higher interest rates than conventional mortgages?

Accepted Answer

Non-QM loans typically carry slightly higher rates than conventional options due to flexible underwriting. Rates vary by borrower profile and market conditions, so the difference depends on your complete financial picture.

Question 3

How far back do my 1099s or bank statements need to go?

Accepted Answer

Most lenders require 12 to 24 months of documentation. Two years of history provides stronger qualification, though some programs accept 12 months for borrowers with excellent credit and reserves.

Question 4

What if my income varies significantly month to month?

Accepted Answer

Bank statement loans handle income fluctuations better since they average deposits over time. 1099 loans also work with variable income by calculating an average across the review period.

Question 5

Can I qualify for a Daly City home with just one year of self-employment?

Accepted Answer

Some programs accept one year of self-employment history, especially if you worked in the same field previously. Strong credit, significant reserves, and larger down payments improve approval odds with shorter histories.

1099 Loans vs Bank Statement Loans in Daly City: Which Self-Employed Option Works for You?