Question 1

Can I use both 1099 and bank statement income on the same loan?

Accepted Answer

No. Lenders make you pick one documentation method. You can't cherry-pick 1099s for some months and bank statements for others.

Question 2

Which loan type has lower rates?

Accepted Answer

1099 loans typically price 0.25% to 0.75% lower than bank statement loans. Rates vary by borrower profile and market conditions.

Question 3

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

Accepted Answer

Yes. Both programs require at least 24 months in the same line of work. One year with a prior work history in the same field sometimes works.

Question 4

Can I qualify if I mix W-2 and 1099 income?

Accepted Answer

You can use W-2 income plus 1099 earnings on a 1099 loan. Bank statement programs get messier when you blend employment types.

Question 5

What if my bank statements show irregular deposits?

Accepted Answer

Underwriters average monthly deposits over 12 or 24 months. A few slow months won't kill the deal if your average holds up.

1099 vs Bank Statement Loans in Rolling Hills Estates: Which Self-Employed Loan Works for You?