Question 1

Do I need tax returns to qualify for a 1099 Loan?

Accepted Answer

No. 1099 Loans use 2 years of bank statements to verify income instead of tax returns. Your deposits matter more than what you report to the IRS. This is the core advantage for self-employed borrowers with strong cash flow but complex tax situations.

Question 2

What credit score do I need for a 1099 Loan in Emeryville?

Accepted Answer

Most lenders start at 620 FICO. Scores of 660 and above get better rates and terms. Self-employed borrowers with strong deposits but lower credit may still qualify, though expect higher rates and larger down payments.

Question 3

How much down payment is required?

Accepted Answer

Down payments range from 5% to 25% depending on your credit score and cash reserves. Stronger profiles (660+ FICO, 6+ months reserves) can put down 5%. Weaker profiles typically need 10% to 15% to offset the alternative documentation risk.

Question 4

How long does it take to close a 1099 Loan?

Accepted Answer

Expect 30 to 45 days. Underwriting takes longer because the lender verifies deposits and business history manually. Conventional loans close faster, but 1099 Loans are faster than FHA or VA loans in most cases.

Question 5

Are 1099 Loans more expensive than conventional loans?

Accepted Answer

Yes. Rates typically run 0.25% to 0.5% higher than conventional conforming rates. The premium reflects the extra underwriting work and risk of alternative documentation. For borrowers who don't qualify for conventional, the cost is worth the access.

1099 Loans in Emeryville: Self-Employed Financing for Bay Area Buyers