Question 1

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

Accepted Answer

No. Lenders pick one income calculation method per file. We run both scenarios upfront to see which qualifies you for more house.

Question 2

Do bank statement loans require business bank accounts?

Accepted Answer

Not always. Many lenders accept personal accounts if deposits clearly show business income. Mixing both accounts can work too.

Question 3

Which option gets better rates in Santa Monica?

Accepted Answer

1099 loans often price 0.25-0.5% lower because documentation is more standardized. Rates vary by borrower profile and market conditions.

Question 4

How far back do my 1099s or statements need to go?

Accepted Answer

Most lenders want 12-24 months. Two years of consistent income strengthens your file and sometimes unlocks better pricing.

Question 5

What if I switched from W-2 to 1099 income recently?

Accepted Answer

You typically need 12-24 months of self-employment history. Shorter timelines work occasionally if you stayed in the same industry.

1099 Loans vs Bank Statement Loans in Santa Monica: Which Self-Employed Option Fits Your Business?