Question 1

Can I switch between 1099 and bank statement loans mid-application?

Accepted Answer

Yes, but you'll restart underwriting with new docs. Most borrowers pick one path based on which income method shows higher qualifying numbers upfront.

Question 2

Do both loan types work for investment properties in Millbrae?

Accepted Answer

Both work for investment properties. Bank statement loans often allow higher leverage on rentals. Expect 20-25% down either way for non-owner occupied.

Question 3

Which loan type closes faster?

Accepted Answer

1099 loans close slightly faster since bank statement underwriting takes longer to analyze deposits. Budget 30-40 days for 1099, 35-45 for bank statements.

Question 4

Can I combine 1099 income with bank statement income?

Accepted Answer

Some lenders allow hybrid approaches, using 1099 for base income and bank statements for supplemental. This works if one method alone doesn't hit your target approval.

Question 5

Do business bank statements work better than personal for income calculation?

Accepted Answer

Business accounts typically show clearer income patterns. Personal accounts work but require more explanation of deposit sources. Use whichever shows consistent, verifiable income.

1099 Loans vs Bank Statement Loans in Millbrae: Which Fits Your Income?