Question 1

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

Accepted Answer

No. Lenders pick one income calculation method. You can't mix tax return income with bank statement income on the same application.

Question 2

Which option closes faster in San Bruno?

Accepted Answer

1099 loans usually close in 21-30 days. Bank statement loans take 30-45 days because underwriters review every deposit manually.

Question 3

Do I need a CPA letter for either program?

Accepted Answer

Bank statement loans sometimes require a CPA letter confirming self-employment. 1099 loans typically don't since your tax returns already prove it.

Question 4

What if I only have one year of 1099 income?

Accepted Answer

Most 1099 loan programs require two years of history. Bank statement loans are more flexible—some lenders accept 12 months of deposits.

Question 5

Are rates actually that different between these two?

Accepted Answer

Yes. Expect 1099 rates within 0.25% of conventional loans. Bank statement rates run 0.5-1.5% higher depending on your deposit consistency.

1099 Loans vs Bank Statement Loans in San Bruno: Which Self-Employed Option Fits You?