Question 1

Can I use both 1099 and bank statement income together?

Accepted Answer

No, lenders pick one method per loan. You choose the documentation path that shows stronger income for qualifying purposes.

Question 2

Which program approves faster in Manhattan Beach?

Accepted Answer

1099 loans close slightly faster since documentation is simpler. Bank statement reviews take 2-3 extra days for deposit analysis.

Question 3

Do both options require business tax returns?

Accepted Answer

Neither program requires tax returns. That's the main advantage over conventional self-employed loans which need two years of returns.

Question 4

What if my bank statements show irregular deposits?

Accepted Answer

Irregular deposits hurt bank statement qualification. 1099 loans work better if income timing varies but annual contractor totals stay consistent.

Question 5

Can I refinance with these programs?

Accepted Answer

Yes, both handle purchase and refinance transactions. Cash-out refinance limits typically max at 75-80% loan-to-value for non-QM programs.

1099 Loans vs Bank Statement Loans in Manhattan Beach: Which Self-Employed Option Works Better?