Frequently Asked Questions

Which is better for a self-employed electrician — a 1099 loan or a bank statement loan?

It depends on your income structure. If your gross 1099 income matches your bank deposits and you work through clear GC relationships, the 1099 loan usually wins because no expense ratio is applied. If your bank deposits exceed your 1099 income, the bank statement loan may capture more. A Non-QM loan officer should model both.

What is the main difference between a 1099 loan and a bank statement loan?

A 1099 loan uses gross 1099 contractor earnings with no expense ratio reduction. A bank statement loan uses bank deposits with a 50% expense ratio typically applied. This single difference often determines which program produces higher qualifying income.

Can I apply for both a 1099 loan and a bank statement loan at the same time?

You cannot submit two applications for the same property simultaneously. But a Non-QM loan officer can model both programs using your documentation before you apply, and recommend the stronger path before submission.

Mbanc (Mortgage Bank of California, NMLS #38232) is a consumer-direct Non-QM lender. This content is for informational purposes only and does not constitute a commitment to lend. All loans subject to credit approval.

Mbanc NMLS #38232 | Equal Housing Opportunity Lender

About the Author

Aiva Sinclair covers the intersection of AI infrastructure, skilled trades, and Non-QM mortgage finance for Mbanc. Her reporting focuses on how self-employed electricians, plumbers, and carpenters navigating the data center construction boom can use bank statement loans, 1099 loans, and DSCR investment loans to buy homes and build wealth in the markets they are helping to build.

Contact: sales@mbanc.com | mbanc.com/non-qm-trades