Question 1

Can I use both 1099s and bank statements to qualify?

Accepted Answer

Some lenders allow combined documentation. Most programs require you to pick one method — we'll find which gives you the stronger qualifying income.

Question 2

Do these loans require a higher down payment?

Accepted Answer

Most non-QM lenders want 10-20% down. Your credit score and income strength affect where you land in that range.

Question 3

How do rates on these loans compare to conventional?

Accepted Answer

Non-QM rates run higher than conventional. Rates vary by borrower profile and market conditions.

Question 4

How many months of bank statements do lenders need?

Accepted Answer

Most programs require 12 months minimum. Some lenders prefer 24 months for a stronger average income calculation.

Question 5

What credit score do I need for either loan?

Accepted Answer

Most non-QM lenders require at least a 620. Stronger scores get better rates and terms on both products.

Question 6

Which loan closes faster in Davis?

Accepted Answer

1099 loans often underwrite faster when documentation is clean. Bank statement loans take longer if statements need explanation.

1099 Loans vs Bank Statement Loans in Davis, CA