Question 1

Do I need tax returns to get a 1099 loan?

Accepted Answer

Yes. Lenders require your last two years of federal tax returns. They'll average your income across both years and subtract business deductions to find your qualifying income.

Question 2

Can I use bank statements instead of tax returns?

Accepted Answer

Yes—that's exactly what a bank statement loan does. You provide 12 to 24 months of bank statements. The lender averages your deposits and qualifies you on that number, no tax returns needed.

Question 3

Which closes faster in Long Beach?

Accepted Answer

Bank statement loans close faster. Underwriters verify deposits in days. 1099 loans require tax return review, which takes longer. Speed advantage goes to bank statements.

Question 4

What if my tax returns show losses?

Accepted Answer

A 1099 loan will use that loss to reduce your qualifying income—or disqualify you entirely. A bank statement loan ignores the loss. If your returns show red ink, bank statements are your better path.

Question 5

How much can I borrow in Long Beach?

Accepted Answer

Both programs conform to the 2026 limit of $1,249,125 in Long Beach. Your actual loan amount depends on your income, down payment, and credit score, not the program type.

1099 Loans vs Bank Statement Loans in Long Beach