Question 1

Do I need to show W-2 income to qualify for either program in Commerce?

Accepted Answer

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.

Question 2

Can I get a 1099 loan with only one year of tax returns?

Accepted Answer

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.

Question 3

What's the minimum down payment for a bank statement loan in Commerce?

Accepted Answer

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.

Question 4

If my tax return shows a loss, can I still qualify for a 1099 loan?

Accepted Answer

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.

Question 5

How much can I borrow in Commerce with either program?

Accepted Answer

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.

1099 Loans vs Bank Statement Loans in Commerce, CA