Question 1

Can I qualify with only one year of 1099 income?

Accepted Answer

Some lenders accept 12 months. Most prefer two years of consistent 1099 history to feel confident in your income.

Question 2

Do bank statement loans work for personal accounts?

Accepted Answer

Yes. Both personal and business accounts qualify. The lender will apply an expense ratio to calculate usable income.

Question 3

Which loan has stricter credit requirements?

Accepted Answer

Both are non-QM loans with similar credit thresholds. Lenders typically want at least a 620-640 score for either program.

Question 4

Can I use both 1099s and bank statements together?

Accepted Answer

Some lenders allow blended documentation. It depends on the lender — that's why having access to many programs matters.

Question 5

Are rates higher on these loans than conventional?

Accepted Answer

Yes, non-QM loans carry higher rates than conventional. Rates vary by borrower profile and market conditions.

Question 6

Which loan is more common for Milpitas tech contractors?

Accepted Answer

1099 loans are a natural fit for W2-to-contractor tech workers. Bank statements suit those running an established business entity.

1099 Loans vs Bank Statement Loans in Milpitas