1099-Only vs Bank Statement Mortgages
1099-only and bank statement are both non-QM doc types for non-W-2 borrowers, but they read different documents. 1099-only sums up the gross income shown on your 1099 forms. Bank statement averages your deposits. Both produce qualifying income, but for different borrower profiles.
1099-Only Loan
Gross 1099 income = qualifying income.
Best for: Real estate agents, insurance agents, gig-economy workers, and consultants who receive 1099 forms.
Pros
- +1099 amounts are simpler than deposit averaging
- +No deposit sourcing required
- +1 year of 1099s accepted (with prior W-2 in same industry)
Cons
- −Only works if income is documented on 1099 forms
- −Mixed cash + 1099 income forces you back to bank statement
Bank Statement Loan
12–24 months of deposits = qualifying income.
Best for: Self-employed borrowers without 1099s, or borrowers with multiple income sources.
Pros
- +Captures cash deposits not on 1099
- +Works for all business structures
Cons
- −More document scrubbing
| Field | 1099-Only Loan | Bank Statement Loan |
|---|---|---|
| Min FICO | 660+ | 660+ |
| LTV (purchase) | Up to 90% | Up to 90% |
| LTV (cash-out) | Up to 85% | Up to 85% |
| Income docs | 1099 gross / 12 or 24 mo | Bank deposits / 12 or 24 mo |
| Term | 30-year fixed | 30-year fixed |
| Time to close | 30 days | 30 days |
Which one should you choose?
- 1099-Only Loan: choose 1099-only if all (or nearly all) of your income is reported on 1099s. Cleaner and faster.
- Bank Statement Loan: choose bank statement if income is mixed (cash, multiple sources) or comes from a structure that does not issue 1099s.
- For real estate agents at single brokerages, 1099-only is almost always the right path. For multi-platform gig workers, bank statement may capture more.
Frequently asked questions
Can I use 1099-only with one year of self-employment?
Yes if you had W-2 employment in the same industry the prior year. A few specialty programs accept 1 year unconditionally.
Are gig-economy 1099-NEC and traditional 1099-MISC treated the same?
Yes. Lenders aggregate 1099 income across all forms received.
Not sure which fits your scenario?
Get an instant rate from hundreds of lenders, no signup required.
Related
1099 Only
1099-only mortgages qualify independent contractors using their last 1 or 2 years of 1099 forms. No tax returns required. Up to 90% LTV available.
Bank Statement
Bank statement mortgages qualify self-employed borrowers using 12 or 24 months of personal or business bank deposits. No tax returns. Up to 90% LTV.
Bank Statement vs P&L
Bank statement loan or P&L-only loan? Compare documentation, rate, and which non-QM doc type fits your self-employed income best.
Asset vs Income
Asset depletion or traditional income qualifying for your next mortgage? Compare which approach fits retirees, high-net-worth borrowers, and irregular earners.
Today's mortgage rates
Conventional
5.875%
5.911% APR
FHA
5.250%
5.278% APR
VA
5.250%
5.275% APR
Conv: 80% LTV, 780 FICO. FHA: 96.5% LTV, 680 FICO. VA: 100% LTV, 680 FICO. 30-yr fixed. Your rate may vary.