Clean 1099s from a few payers → 1099. Many sources / cash-heavy / big deposits → bank statement. Business owner w/ CPA books → P&L. Strong net on returns → conventional. See Eligibility.
The side-by-side
| Program | Qualifies on | Best for | Tax returns? |
|---|---|---|---|
| 1099 | Gross 1099 income (90–100%) | Contractors w/ clean 1099s | No |
| Bank Statement | 12–24 mo of deposits | Many sources / cash-heavy | No |
| P&L | CPA-prepared P&L | Business owners w/ books | No |
| Conventional | Net income on tax returns | Strong net / 2-yr history | Yes |
Head-to-head matchups
1099 vs Bank Statement
The matchup that matters most. 1099 uses your forms; bank statement uses deposits. Few clean payers → 1099; many sources / cash / deposits exceeding 1099s → bank statement.
1099 vs P&L
P&L uses a CPA statement (business owner); 1099 uses your actual 1099 forms (contractor pay).
1099 vs Conventional
Conventional is cheaper but averages 2 yrs of net returns; 1099 uses gross & skips returns — wins when write-offs sink your net.
The decision framework
Do your tax returns show strong net income?
Yes → conventional (cheapest). No → continue.
Are you paid on clean 1099s by a few payers?
Yes → 1099 loan. Partly → compare with the next.
Do your deposits exceed your 1099s (cash / many sources)?
Yes → bank statement.
Are you a business owner with formal CPA books?
Yes → P&L may qualify you for more.
1099 comparison FAQs
1099 vs bank statement?
Forms vs deposits. Clean 1099s → 1099; many sources/cash → bank statement. Calculate both.
1099 vs P&L?
P&L = CPA statement (business owner); 1099 = actual 1099 forms (contractor).
1099 vs conventional?
Conventional cheaper on strong net; 1099 wins when write-offs sink your net.
Which qualifies me for the most?
Whichever best reflects your true earnings — we calculate all of them.
One broker for all?
Yes — we run 1099, bank statement, P&L & conventional side by side.
Reviewed by the licensing team at Save Financial, a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766) founded in 2009 and serving all 58 counties. Nothing here is tax advice.