Question 1

Can I use both 1099s and bank statements together?

Accepted Answer

Some lenders allow blended documentation. This helps if you have both W-2 and 1099 income or need to show additional cash deposits alongside formal contracts.

Question 2

Which option has lower rates?

Accepted Answer

1099 loans typically price 0.125-0.25% better because documentation is more standardized. Rates vary by borrower profile and market conditions.

Question 3

How much income documentation do I need?

Accepted Answer

Both programs require 12-24 months of history. 1099 loans need forms from each client. Bank statement loans need consecutive monthly statements with no gaps.

Question 4

Do I need tax returns for either program?

Accepted Answer

Most 1099 lenders want tax returns to verify against your forms. Bank statement programs often skip tax returns entirely, relying only on deposit history.

Question 5

Can I qualify if my business is less than two years old?

Accepted Answer

Bank statement loans sometimes accept 12 months of history. 1099 programs typically require two years of self-employment in the same field.

1099 Loans vs Bank Statement Loans in Capitola: Which Self-Employed Option Works Best?