Question 1

Can I use both 1099 forms and bank statements on the same loan?

Accepted Answer

No. Lenders pick one income calculation method per file. You choose which documentation gives you the stronger qualifying income number.

Question 2

Do these loans have higher rates than conventional mortgages?

Accepted Answer

Yes. Non-QM loans typically price 1-3% higher than agency mortgages. Rates vary by borrower profile and market conditions based on credit, down payment, and loan amount.

Question 3

How many months of 1099 income do I need to qualify?

Accepted Answer

Most lenders want 12-24 months of consistent 1099 income from the same clients. Newer contractors may struggle with short work history requirements.

Question 4

What if my bank statements show irregular deposits?

Accepted Answer

Lenders average deposits over 12 or 24 months. Wild swings reduce qualifying income but don't automatically disqualify you from bank statement loans.

Question 5

Can I switch from a 1099 loan to a conventional loan later?

Accepted Answer

Yes. Many borrowers refinance into conventional loans once they have two years of clean tax returns showing W-2 income or qualifying self-employment.

Question 6

Do Campbell home prices require larger down payments for these loans?

Accepted Answer

Not specifically. Standard non-QM guidelines apply—15-20% down minimum. Higher loan amounts may require 25% down regardless of location or property price.

1099 Loans vs Bank Statement Loans in Campbell: Which Fits Your Self-Employed Income?