Question 1

Can I use both 1099s and bank statements together?

Accepted Answer

No. Lenders pick one method to verify income. They won't mix documentation types on the same application.

Question 2

Which loan type closes faster in Palo Alto?

Accepted Answer

1099 loans typically close quicker because the documentation is more standardized. Bank statement reviews take longer due to transaction analysis.

Question 3

Do both options require the same down payment?

Accepted Answer

Usually yes, starting at 10-15% down. Your credit score and debt ratio affect the exact requirement more than the income verification method.

Question 4

What credit score do I need for each program?

Accepted Answer

Both require 620 minimum, but 680+ gets you better pricing. Higher scores offset the added risk of non-traditional income documentation.

Question 5

Can I qualify using crypto assets now?

Accepted Answer

Some lenders accept verified cryptocurrency as reserves for both loan types. Rates vary by borrower profile and market conditions.

1099 Loans vs Bank Statement Loans: Which Fits Your Palo Alto Purchase?