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in San Bruno, CA
San Bruno sits in the heart of San Mateo County's job corridor. Burlingame's 220 Park just leased to Confluent and Upstart, signaling strong employer demand nearby.
Both paths let you buy without W-2 paystubs. The real difference lies in what you document, how lenders verify it, and which one closes faster for your situation.
1099 loans tie your approval directly to your tax returns. Lenders average your net income over two years, then apply a debt-to-income ratio. If you've been self-employed for two years and filed consistently, this path is straightforward.
The catch: tax returns show what you reported to the IRS. If you've minimized taxable income through deductions, your qualifying income drops. Lenders won't add back depreciation or other write-offs. You qualify on what the return actually says.
Bank statement loans skip the tax return entirely. Instead, lenders review 12 to 24 months of bank deposits. They average your deposits and apply a percentage—usually 50% to 75%—to calculate qualifying income. No tax return needed.
This works when your actual cash flow is stronger than your reported income. Deposits show real money moving through your account. Lenders don't care about deductions or write-offs. They care about deposits.
1099 loans reward consistent tax filing. Bank statement loans reward consistent deposits. In San Bruno's market, where median household income is $156,000 countywide, both can work—but they work for different income profiles.
The approval speed differs too. 1099 loans require tax transcripts from the IRS, adding 5 to 10 days. Bank statement loans pull from your bank directly, closing in 2 to 3 days. For a buyer closing in 30 days, that matters.
Down payment and rates are usually the same. The real edge goes to whoever has cleaner documentation. If your tax returns show lower income than your deposits, bank statements win. If your returns are solid and deposits are lumpy, 1099 wins.
Pick 1099 loans if you've filed consistently for two years and your tax returns show solid net income. You're comfortable with what the IRS sees. You've been in the same business or trade. Your deductions are reasonable, not aggressive.
Pick bank statement loans if your deposits are strong but your tax returns show lower income due to heavy deductions. You've been self-employed for at least one year. You need to close in 30 days or less. Your business is stable and deposits are regular.
Yes. Lenders average your net income over two years. If you've been self-employed less than two years, bank statements become your better option.
Yes, if you have 12 months of deposits. Some lenders accept 6 months with strong reserves. 1099 loans require two years, so bank statements work better for newer businesses.
Yes. Lenders use your net profit after deductions. Heavy write-offs lower your qualifying income. Bank statement loans ignore deductions and use actual deposits instead.
Bank statement loans. They close in 2 to 3 days. 1099 loans need IRS transcripts, adding 5 to 10 days. In a 30-day close, that's meaningful.
No. Rates depend on credit, down payment, and loan amount. The program choice doesn't affect pricing. Both can access the $1,249,125 conforming limit in San Bruno.