> ## Documentation Index > Fetch the complete documentation index at: https://cameron.mintlify.site/llms.txt > Use this file to discover all available pages before exploring further. # Program Comparison Overview > Comparing bank statement, 1099, P&L, and asset depletion mortgage programs to find the right fit The four specialty mortgage programs for self-employed borrowers take different approaches to documenting and calculating income. Understanding the core differences helps you identify which program fits your situation—and how to shop effectively within that program. ## Side-by-Side Comparison | Factor | Bank Statement | 1099 | P\&L | Asset Depletion | | ---------------- | ---------------------------------------- | ---------------------------------------------- | -------------------------------------------------- | ---------------------------------------------------------- | | Income source | Bank deposits | 1099 forms | CPA financials | Liquid assets | | CPA required | No (helps) | No (helps) | Yes | No | | Expense factor | Yes (10-50%+) | Sometimes (0-25%) | No (actual expenses) | N/A | | Statement period | 12 or 24 months | 1 or 2 years of 1099s | 12 or 24 months | Recent statements | | Best for | Business owners with consistent deposits | Independent contractors and commission earners | Borrowers with clean books and low actual expenses | High-net-worth borrowers with limited income documentation | ## Key Variables Within Each Program ### Bank Statement Loans Programs vary most significantly on expense factor methodology—the single biggest lever for qualifying income. | Variable | Range Across Lenders | | -------------------- | ---------------------------------- | | Statement period | 12 or 24 months | | Expense factor | 10-50%+ depending on business type | | Minimum credit score | 620-700 | | Maximum LTV | 80-90% | | Maximum DTI | 43-55% | | Maximum loan amount | $2M-$10M+ | A lender applying a 30% expense factor versus 50% can mean tens of thousands of dollars in additional qualifying income on the same deposit history. ### 1099 Loans Key variables are whether the lender applies an expense factor and how they handle multiple 1099 sources or income variability. | Variable | Range Across Lenders | | --------------------------------- | ---------------------------- | | 1099 period | 1 or 2 years | | Expense factor | 0-25% | | Eligible 1099 types | NEC, MISC, K (varies) | | Bank statement cross-verification | Required by some, not others | | Minimum credit score | 620-700 | Some lenders use 100% of gross 1099 income with no expense deduction. Others apply a modest factor. Asking upfront is essential. ### P\&L Loans Because income comes directly from the P\&L net profit figure, the main variables are the qualifying period, whether the lender requires a reviewed or audited statement, and how they treat the relationship between the P\&L and bank statements. | Variable | Range Across Lenders | | ------------------------- | --------------------------------- | | P\&L period | 12 or 24 months | | CPA requirements | Prepared vs. reviewed vs. audited | | Bank statement supplement | 2-3 months required by most | | Minimum credit score | 620-700 | | Maximum LTV | 80-90% | ### Asset Depletion Loans The depletion period is the most critical variable—it has a larger impact on qualifying income than any other single factor across all four programs. | Variable | Range Across Lenders | | --------------------------- | -------------------- | | Depletion period | 60-360 months | | Investment account discount | 70-80% of value | | Retirement account discount | 60-70% of value | | Minimum eligible assets | $500,000-$1,000,000+ | | Maximum LTV | 65-75% | A lender using a 120-month depletion period produces three times the monthly qualifying income of one using 360 months on the same asset base. ## Choosing Between Programs Some borrowers qualify under more than one program. When that's the case, the decision comes down to which method produces the highest qualifying income: * **Bank statements vs. 1099s** — If you have both deposit history and 1099 forms, calculate which yields more income after expense factor adjustments * **Bank statements vs. P\&L** — If your actual expense ratio is lower than what bank statement lenders assign for your industry, a P\&L loan may qualify you for more * **Income programs vs. asset depletion** — If earned income alone doesn't qualify you but you have significant liquid assets, asset depletion can supplement or replace income documentation ## Questions to Ask Lenders For any program: * What's the maximum LTV at my loan amount? * What reserves are required for my scenario? * What rate adjustments apply to my credit score, LTV, and property type? * Do you offer interest-only options? For bank statement loans specifically: * What expense factor applies to my business type? * Can a CPA letter or P\&L reduce the expense factor? * Can I use 12-month statements, or is 24 months required? For 1099 loans specifically: * Do you apply an expense factor to 1099 income? * Which 1099 types do you accept? * Do you require bank statement cross-verification? For P\&L loans specifically: * Do you require a reviewed or audited P\&L, or is a prepared statement sufficient? * How many months of bank statements are required alongside the P\&L? * What happens if the P\&L and tax return show different income? For asset depletion loans specifically: * What depletion period do you use? * How do you discount investment and retirement accounts? * Can asset depletion income be combined with other qualifying income? ## Getting Multiple Quotes None of these programs are commoditized like conventional mortgages. Programs differ enough—within each type and across lender options—that shopping multiple lenders is essential. Request a full loan estimate from at least three lenders and compare: * Qualifying income calculation (the most important factor) * Interest rate and APR * Required down payment * Closing costs and fees * Reserve requirements The lender with the lowest rate isn't always the best choice if their methodology produces a lower qualifying income than you need.