Question 1

Can I use both 1099s and bank statements together?

Accepted Answer

Some lenders accept hybrid documentation, but most programs require choosing one primary verification method. Your loan advisor can determine which approach works best for your specific income situation.

Question 2

Do these loans have higher interest rates than conventional mortgages?

Accepted Answer

Non-QM loans including 1099 and bank statement programs typically carry higher rates than conventional loans due to alternative documentation. Rates vary by borrower profile and market conditions.

Question 3

How much income documentation do I need to prepare?

Accepted Answer

1099 loans require one to two years of forms from all clients. Bank statement loans need 12 to 24 months of complete statements showing all deposits and withdrawals.

Question 4

Can I buy investment property in Redwood City with these loans?

Accepted Answer

Both programs can finance investment properties, though qualification criteria may differ from primary residences. Lenders evaluate rental income potential and your overall borrower profile.

Question 5

What credit score do I need for these self-employed loan programs?

Accepted Answer

Minimum credit scores typically range from 620 to 680 depending on the lender and program. Stronger credit generally improves your rate and expands your lender options.

1099 Loans vs Bank Statement Loans: Which Self-Employed Option Fits Your Redwood City Purchase?