Question 1

Can I switch between these loan types during the process?

Accepted Answer

Yes, if one path shows weaker income than expected. We run both calculations upfront to pick the strongest option before you apply.

Question 2

Do these loans cost more than conventional mortgages?

Accepted Answer

Rates run 0.5-1.5% higher than conventional, but both 1099 and bank statement programs price similarly. The income documentation drives the difference, not the rate.

Question 3

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

Accepted Answer

Mix them. Lenders combine income sources. Use W-2 for the stable base and 1099 for upside if it strengthens your file.

Question 4

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

Accepted Answer

Two years for 1099s. Bank statements need 12-24 months depending on the lender and how strong the income trend looks.

Question 5

Can I use business bank statements if everything runs through my LLC?

Accepted Answer

Absolutely. Business statements work as long as you're the owner. Some lenders prefer them since they show pure business cash flow.

1099 Loans vs Bank Statement Loans in Hillsborough: Which Non-QM Option Fits Your Business?