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in Half Moon Bay, CA
Half Moon Bay's coastal market moves fast. Burlingame's 220 Park office tower just hit 100% occupancy, signaling strong regional employment. Self-employed buyers here often choose between 1099 loans and bank statement loans to prove income without tax returns.
Both programs let you document earnings differently. The choice depends on your income pattern, down payment, and how quickly you need to close. San Mateo County's median household income sits at $156,000 — well above state average.
1099 loans work for self-employed borrowers who file tax returns. You'll need your last two years of 1099s and filed tax returns. The lender averages your net income across those two years to calculate your debt-to-income ratio.
Lenders typically want to see consistent or growing income. If you had a down year, they may average it down. Most programs require a 620 FICO floor, though 640+ gets better pricing. Down payments start at 10% for qualified borrowers.
Bank statement loans skip tax returns entirely. Instead, the lender reviews 12 to 24 months of bank deposits to verify income. This works well if you take irregular draws or reinvest profits rather than filing traditional returns.
The lender counts deposits, subtracts business expenses shown in statements, and calculates qualifying income. FICO requirements are similar — 620 to 640 minimum. Down payments typically run 15% to 20% since the lender has less documentation.
1099 loans let you put down 10% if your income is solid. Bank statement loans typically ask for 15% to 20% down because the lender has less formal documentation. That gap matters on a Half Moon Bay purchase.
1099 loans require filed tax returns — a paper trail the IRS has seen. Bank statement loans don't care about returns; they just need your bank deposits.
Both programs cap at the 2026 conforming limit of $1,249,125 in San Mateo County. Above that, you'd need a jumbo loan. The real difference is documentation: one proves income to the IRS, the other proves it to your bank.
Choose 1099 loans if you file tax returns consistently and your income is stable or growing. Your FICO is 640+. You have 10% down saved. You want the lowest down payment requirement. This path works best when the IRS already has your story.
Bank statement loans fit you if you take irregular draws, reinvest profits, or haven't filed returns yet. Your bank deposits show real cash flow. You can put 15% to 20% down. You close faster without waiting for tax transcripts.
Yes. 1099 loans require your last two years of filed tax returns and matching 1099 forms. The lender verifies them with the IRS. Bank statement loans skip this step entirely.
Yes. Bank statement loans are built for irregular income. The lender reviews 12-24 months of deposits and subtracts documented expenses. This captures your real cash flow better than averaged tax returns.
1099 loans start at 10% down for qualified borrowers. Bank statement loans typically require 15% to 20% down. The difference reflects how much documentation the lender has.
Bank statement loans close faster. They don't need IRS transcripts or tax return verification. 1099 loans wait for transcript requests, which adds 5-10 days.
Yes. Both cap at the 2026 conforming limit of $1,249,125 in San Mateo County. Purchases above that require a jumbo loan, which has different rules.