Question 1

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

Accepted Answer

No, lenders typically use one income verification method per application. Your loan officer will recommend the approach that best showcases your qualifying income based on your specific financial situation.

Question 2

How far back do I need bank statements or 1099 forms?

Accepted Answer

Most programs require 12 to 24 months of documentation. The longer timeframe helps lenders establish consistent income patterns and reduces risk for all parties.

Question 3

Are interest rates higher for these non-QM loan options?

Accepted Answer

Rates vary by borrower profile and market conditions. Non-QM loans may carry slightly higher rates than conventional mortgages due to flexible underwriting, but competitive options exist for qualified borrowers.

Question 4

Do I need a larger down payment for self-employed loans?

Accepted Answer

Down payment requirements typically range from 10% to 20% for both programs. Your specific requirement depends on property type, credit profile, and overall loan structure.

Question 5

Which option approves faster in San Carlos?

Accepted Answer

1099 loans often process slightly faster since the documentation is more standardized. Bank statement loans require detailed deposit analysis, which can extend underwriting time by several days.

1099 Loans vs Bank Statement Loans in San Carlos: Which Self-Employed Option Fits You?