Question 1

Can I use both 1099 and bank statement income together?

Accepted Answer

Yes, some lenders blend sources when you have multiple income streams. This works well for borrowers with both contractor work and business ownership.

Question 2

Which loan type gets better rates?

Accepted Answer

1099 loans typically price 0.25-0.75% lower because documentation is simpler. Bank statement loans carry slightly higher rates due to manual underwriting.

Question 3

How long does underwriting take for each option?

Accepted Answer

1099 loans close in 21-30 days with clean files. Bank statement loans need 30-45 days because every deposit requires review and verification.

Question 4

Do I need two years of tax returns for both?

Accepted Answer

1099 loans require 1-2 years of personal returns. Bank statement loans may waive tax returns entirely if 24 months of statements show strong income.

Question 5

Can I switch from one to the other mid-application?

Accepted Answer

Yes, you can pivot if initial income calculations don't work. Many borrowers start with 1099 and move to bank statements when write-offs limit qualifying power.

1099 vs Bank Statement Loans in Atherton: Which Fits Your Business Structure?