Question 1

Can I use both 1099 forms and bank statements for qualification?

Accepted Answer

Some lenders offer hybrid approaches that consider multiple documentation types. This flexibility can strengthen your application if you have both strong 1099 income and healthy bank deposits.

Question 2

Which program typically offers better rates for self-employed borrowers?

Accepted Answer

Rates vary by borrower profile and market conditions. Both programs usually have similar pricing since they're non-QM products, with your credit score and down payment affecting rates more than the program choice.

Question 3

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

Accepted Answer

Most programs require 12 to 24 months of documentation. Longer histories sometimes help borrowers with income variability show consistent earning patterns over time.

Question 4

Do these programs work for Woodside investment properties?

Accepted Answer

Yes, both 1099 and bank statement loans can finance investment properties in San Mateo County. Non-QM programs often accommodate investors more flexibly than conventional loans.

Question 5

What if my 1099 income varies significantly month to month?

Accepted Answer

Bank statement loans may work better for variable income since they average deposits over the review period. The smoothing effect of averaging helps offset monthly fluctuations in your cash flow.

1099 Loans vs Bank Statement Loans: Which Works Best for Woodside Self-Employed Borrowers?