Can I get a bank statement loan with a 1099?

Yes. If you are an independent contractor or freelancer with 1099 income, we can use your 1099 forms and bank statements to prove your consistent earnings.

Are interest rates higher for bank statement loans?

Generally, yes. Because the lender is not using tax returns as a verification tool, the rates are typically 0.5% to 1.5% higher than a standard FHA loan. However, for many, the ability to buy a home without changing their tax strategy far outweighs the rate difference.

Do I need a profit and loss (P&L) statement?

Not always. Many of our programs only require bank statements. If a P&L is required, it can often be self-prepared by the borrower or their CPA.

Can I use bank statement loans to buy an investment property?

Absolutely. This is a favorite tool for non-QM loans for business owners who want to scale their portfolio without showing massive personal income on tax returns.

Stephen Cowherd, Author at The Herd Lending

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