Loading
in Foster City, CA
Foster City buyers with self-employment income choose between 1099 loans and bank statement loans. Both serve contractors, consultants, and business owners without W-2 paystubs. San Mateo County's median household income is $156,000.
The 2026 conforming limit is $1,249,125. Both programs compete on documentation, speed, and eligibility. Understanding the difference prevents months of delays.
1099 loans rely on your filed tax returns to prove income. The lender averages two years of net income from those returns.
Underwriting moves quickly with clean, consistent returns. Depreciation add-backs are allowed. Expect 10% to 20% down and solid credit.
Bank statement loans skip tax returns and use business bank deposits instead. The lender reviews 12 to 24 months of statements to calculate income.
You document that deposits are business-related, not personal transfers. Down payments typically run 15% to 25%. Credit requirements match 1099 loans.
Local decision guide
Use this comparison to weigh 1099 Loans and Bank Statement Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Foster City.
Foster City buyers with self-employment income choose between 1099 loans and bank statement loans. Both serve contractors, consultants, and business owners without W-2 paystubs. San Mateo County's median household income is $156,000.
The 2026 conforming limit is $1,249,125. Both programs compete on documentation, speed, and eligibility. Understanding the difference prevents months of delays.
1099 loans rely on your filed tax returns to prove income. The lender averages two years of net income from those returns.
1099 loans close faster because they need only tax returns. Bank statement loans require more documentation and longer underwriting. Speed is the real advantage for 1099 loans.
Down payment expectations differ. 1099 loans often accept 10% down, while bank statement loans want 15% or more. The trade-off is flexibility: 1099 loans are stricter about returns, while bank statement loans are more flexible on income.
Choose 1099 loans if your tax returns show your real business income. You have solid credit, can put 10% to 20% down, and want speed. This works for established contractors with clean filings.
Bank statement loans fit if your returns don't capture your earning power. You have strong deposits but complex deductions or timing issues. You'll wait longer for underwriting in exchange for flexible documentation.
Yes. 1099 loans require two years of filed tax returns. The lender averages your net income from those returns. Bank statement loans skip this requirement.
Yes. Bank statement loans focus on actual deposits, not tax returns. If your business account shows consistent deposits, you qualify even if returns show deductions.
1099 loans typically close faster. They need only tax returns, which are already filed. Bank statement loans require 12 to 24 months of statements and take longer to verify.
1099 loans often accept 10% down. Bank statement loans typically require 15% to 25% down. Both programs may ask for reserves and credit above 680.
Yes. Ask your lender about options that blend both income sources. Some lenders will use W-2 income plus bank statement income to strengthen your application.