Question 1

Can I use both 1099s and bank statements together?

Accepted Answer

Some lenders allow combined documentation. It depends on the program. We can identify which lenders offer that flexibility for your profile.

Question 2

Do these loans require a larger down payment?

Accepted Answer

Most non-QM loans require 10-20% down. The exact amount depends on your credit score and the lender's guidelines.

Question 3

What credit score do I need for either loan?

Accepted Answer

Most lenders want at least 620-640 for non-QM programs. Stronger scores unlock better rates and terms.

Question 4

Which loan closes faster?

Accepted Answer

1099 loans often have simpler doc requirements and can move faster. Bank statement reviews take longer due to deposit analysis.

Question 5

Are these loans available for investment properties in Sonoma?

Accepted Answer

Yes. Both loan types can be used for investment properties. Expect stricter reserve requirements and higher rates on non-owner-occupied deals.

Question 6

How does the bank statement expense ratio work?

Accepted Answer

Lenders deduct an assumed expense percentage from your deposits. A lower expense ratio means more qualifying income — this varies by lender.

1099 Loans vs Bank Statement Loans in Sonoma, CA