Question 1

Can I qualify for a 1099 loan if I've been self-employed for only one year?

Accepted Answer

Most lenders require two years of self-employment history. One year of deposits won't satisfy underwriting. Wait until you hit the two-year mark, then apply.

Question 2

Do I need to show my tax returns for a 1099 loan?

Accepted Answer

Not always. Bank statement lenders focus on deposits and cash flow. Tax returns help if they match your statements, but they're not the primary document. Bring both to be safe.

Question 3

What if my tax return shows a loss but my bank account is strong?

Accepted Answer

That's exactly when 1099 loans shine. Lenders see your real deposits and ignore depreciation or business expenses that reduced your taxable income. Bank statements tell the true story.

Question 4

How much down payment do I need for a 1099 loan in Fremont?

Accepted Answer

Minimum is 5%, but 20% gets you the best rate and avoids mortgage insurance. Most self-employed borrowers put 10% to 15% down to balance cash reserves and equity.

Question 5

Will a 1099 loan cost more than a conventional loan?

Accepted Answer

Rates are usually 0.25% to 0.5% higher because underwriting is more complex. The trade-off is worth it if conventional lenders won't approve you at all.

1099 Loans in Fremont: Self-Employed Mortgage Solutions