Question 1

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

Accepted Answer

Lenders typically use one method or the other, not both simultaneously. However, you can apply using both approaches to see which qualifies you for better terms.

Question 2

Do these loans require higher down payments than conventional mortgages?

Accepted Answer

Most non-QM loans require 10-20% down, slightly higher than conventional options. The exact amount depends on your credit score, loan amount, and property type.

Question 3

How long does underwriting take for these loan types?

Accepted Answer

Expect 30-45 days for closing. Bank statement loans may take slightly longer due to the detailed deposit analysis required during underwriting.

Question 4

Will my CPA need to provide additional documentation?

Accepted Answer

For 1099 loans, you'll need tax returns your CPA prepared. Bank statement loans require minimal CPA involvement since they focus on deposit history rather than tax filings.

Question 5

Can I refinance from one loan type to the other?

Accepted Answer

Yes, you can refinance between these options or into a conventional loan once your documentation supports traditional qualifying methods.

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