Question 1

Can I use both 1099 forms and bank statements for one loan?

Accepted Answer

Most lenders require you to choose one income documentation method. Mixing the two complicates underwriting and doesn't typically increase your qualifying income enough to justify the extra review.

Question 2

Do both loan types require the same down payment?

Accepted Answer

Yes, both typically need 10-20% down depending on credit score and property type. The income verification method doesn't change equity requirements for non-QM loans.

Question 3

Which program has faster approval times?

Accepted Answer

1099 loans usually close faster because underwriters simply verify forms against IRS transcripts. Bank statement reviews take longer due to manual transaction analysis across multiple months.

Question 4

Can I qualify with only one year of self-employment?

Accepted Answer

Both programs require two years in the same line of work. Lenders need to see consistent income patterns before approving non-QM financing.

Question 5

What credit score do I need for each option?

Accepted Answer

Both require 620 minimum, but 680+ gets you significantly better pricing. The score requirements don't differ between the two programs.

1099 Loans vs Bank Statement Loans in Moorpark: Which Non-QM Option Fits Your Business?