Question 1

Can I use one year of 1099s to qualify?

Accepted Answer

Some lenders accept one year, but most want two. Strong income and a higher down payment can help if you only have one year.

Question 2

Do lenders average my 1099 income over two years?

Accepted Answer

Yes, typically. If income dropped year over year, lenders may use the lower figure or the two-year average.

Question 3

Will my tax write-offs hurt my 1099 loan approval?

Accepted Answer

No — that's the point of this loan. Lenders use your gross 1099 income, not the net figure after deductions on your tax return.

Question 4

How does a 1099 loan differ from a bank statement loan?

Accepted Answer

A 1099 loan uses your 1099 forms as proof of income. A bank statement loan uses deposit history. Both skip the W-2 requirement.

Question 5

What credit score do I need for a 1099 loan in Berkeley?

Accepted Answer

Most non-QM lenders want 620-660 minimum. Higher scores get you better rates. Rates vary by borrower profile and market conditions.

Question 6

Can I buy a higher-priced Berkeley home with a 1099 loan?

Accepted Answer

Yes. Non-QM lenders offer jumbo 1099 products with higher loan limits. Down payment and reserve requirements will be stricter.

1099 Loans in Berkeley for Independent Earners