Question 1

Can I use both 1099s and bank statements on the same loan?

Accepted Answer

No. Lenders pick one income calculation method per loan. You can apply through both programs and choose whichever approves you for more, but you can't blend the documentation.

Question 2

Which program has lower rates?

Accepted Answer

Rates are nearly identical—both are non-QM products priced 1-2% above conventional. Your credit score and down payment affect rate more than which program you choose.

Question 3

Do I need two years of self-employment history for both?

Accepted Answer

Yes. Both programs want 24 months in the same line of work. Lenders occasionally accept 12 months if you have strong credit and reserves, but that's not standard.

Question 4

What if my 1099 income dropped last year?

Accepted Answer

Lenders average the two years, so one down year gets smoothed out. If the trend is sharply downward, you'll need a letter explaining why income will stabilize.

Question 5

Can I use bank statements from multiple accounts?

Accepted Answer

Yes. Most lenders let you combine personal and business accounts to maximize deposits. Just make sure the statements cover consecutive months with no gaps.

Question 6

Which program closes faster?

Accepted Answer

Bank statement loans typically close quicker because there's no CPA letter or transcript delay. Expect 21-30 days for bank statements versus 30-40 for 1099 loans.

1099 Loans vs Bank Statement Loans in Los Angeles: Which Non-QM Fits Your Self-Employed Income?