Question 1

Can I use both 1099s and bank statements together?

Accepted Answer

Some lenders allow a hybrid approach. Most non-QM lenders want one primary method — ask your broker which produces the higher qualifying income.

Question 2

What credit score do I need for these loans?

Accepted Answer

Most non-QM lenders want at least a 620. Stronger scores get better rates. Rates vary by borrower profile and market conditions.

Question 3

How much down payment is required?

Accepted Answer

Expect 10-20% down for most non-QM products. Higher loan amounts or lower credit scores often require more down.

Question 4

Do these loans work for Petaluma rental property purchases?

Accepted Answer

Yes. Both programs can be used for investment properties, though down payment and rate requirements differ from primary residence loans.

Question 5

What if my 1099 income varies year to year?

Accepted Answer

Lenders average two years of 1099 income. A sharp drop in year two can hurt qualification — bank statements may tell a better story in that case.

Question 6

Are these rates higher than conventional loans?

Accepted Answer

Non-QM rates run higher than conventional. The trade-off is qualifying on actual income, not tax-reduced income. Rates vary by borrower profile and market conditions.

1099 Loans vs Bank Statement Loans in Petaluma