Question 1

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

Accepted Answer

Most lenders require choosing one documentation method. However, some programs allow combining income sources. A mortgage broker can identify the approach that maximizes your qualifying income.

Question 2

How far back do I need documentation for these loans in Foster City?

Accepted Answer

1099 Loans typically require one to two years of 1099 forms. Bank Statement Loans need 12 to 24 months of consecutive statements. Longer history often strengthens your application.

Question 3

Do these loans have higher interest rates than conventional mortgages?

Accepted Answer

Non-QM loans including both options typically carry rates 0.5% to 2% higher than conventional loans. The specific rate depends on your credit score, down payment, and loan amount.

Question 4

What credit score do I need for 1099 or Bank Statement Loans?

Accepted Answer

Most programs require minimum credit scores between 620 and 680. Higher scores improve your rate and terms. Strong income documentation can sometimes offset lower credit scores.

Question 5

Can I buy investment property in Foster City with these loan types?

Accepted Answer

Yes, both 1099 Loans and Bank Statement Loans work for primary residences, second homes, and investment properties. Requirements may vary by property type and intended use.

1099 Loans vs Bank Statement Loans in Foster City: Which Self-Employed Option Fits Your Situation?