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in Commerce, CA
Commerce sits in Los Angeles County where the conforming loan limit hits $1,249,125 in 2026. Self-employed buyers here choose between 1099 loans and bank statement loans based on which tax documents tell the strongest income story.
Both programs let self-employed borrowers skip W-2 verification. The difference is which financial records the lender pulls to prove you can afford the payment. In Commerce's industrial and mixed-use market, that choice matters.
1099 loans pull your income straight from your last two years of tax returns. The lender averages your net profit and uses that number to calculate your debt-to-income ratio.
You'll need a credit score around 620 minimum, though 680+ gets better rates. Down payments start at 10% for conforming loans up to $1,249,125.
Bank statement loans ignore your tax returns entirely. Instead, the lender deposits your last 24 months of bank statements and counts deposits as income. This works for business owners who take irregular draws or have high deductions on paper.
Credit requirements are similar—620 to 680 range—but down payments often run 15% to 20% because the lender is relying on cash flow, not tax-reported profit. If you deposit $8,000 a month on average, that's roughly $96,000 annual income the lender can use.
Local decision guide
Use this comparison to weigh 1099 Loans and Bank Statement Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Commerce.
Commerce sits in Los Angeles County where the conforming loan limit hits $1,249,125 in 2026. Self-employed buyers here choose between 1099 loans and bank statement loans based on which tax documents tell the strongest income story.
Both programs let self-employed borrowers skip W-2 verification. The difference is which financial records the lender pulls to prove you can afford the payment. In Commerce's industrial and mixed-use market, that choice matters.
1099 loans pull your income straight from your last two years of tax returns. The lender averages your net profit and uses that number to calculate your debt-to-income ratio.
1099 loans reward clean tax returns. Bank statement loans reward consistent deposits. If your tax return shows $150,000 net but you deposit $200,000 annually, bank statements give you more buying power. The lender counts deposits, not deductions.
Down payment is the second split. 1099 loans often allow 10% down to the $1,249,125 limit. Bank statement loans typically require 15% or 20% because the lender is verifying cash flow, not IRS-reported income.
Approval speed favors 1099 loans if your returns are straightforward. Bank statement loans take longer because the lender manually reviews 24 months of deposits.
Pick 1099 loans if your last two tax returns show strong, consistent net profit with minimal deductions. You're a consultant, freelancer, or small business owner who reports most income on the return. You want the fastest approval and can put 10% down.
Pick bank statement loans if your tax returns show losses, high business deductions, or irregular income but your bank deposits are solid and consistent. You're a contractor, real estate investor, or business owner who takes irregular draws.
No. Both 1099 loans and bank statement loans are designed for self-employed borrowers who don't have W-2 employment. The lender verifies income through tax returns or bank deposits instead.
Most lenders require two years of tax returns for 1099 loans. One year is rarely enough to prove income stability. Bank statement loans also typically need 24 months of statements.
Bank statement loans typically require 15% to 20% down. Some lenders go as low as 10% with excellent credit and strong deposit history, but 15% is the standard in Los Angeles County.
No. A loss on your tax return reduces your qualifying income to zero or negative. Bank statement loans are better if your returns show losses but your deposits are consistent and strong.
Both programs can go up to $1,249,125 in Los Angeles County for 2026. Your actual loan amount depends on your credit, down payment, and qualifying income—not the program itself.