Question 1

How do lenders calculate my 1099 income?

Accepted Answer

Lenders typically average your 1099 income over 12-24 months. They review forms from all clients and may apply a percentage (often 75-100%) of gross receipts to account for business expenses not shown on 1099s.

Question 2

Can I use 1099 income from multiple clients?

Accepted Answer

Yes, most programs accept 1099s from multiple sources. Lenders combine all documented income to calculate your total qualifying amount, though they prefer seeing consistent clients over time.

Question 3

Do I need to provide tax returns for a 1099 loan?

Accepted Answer

Many 1099 loan programs don't require full tax returns, relying instead on the 1099 forms themselves and bank statements. This helps self-employed borrowers who take legitimate business deductions.

Question 4

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

Accepted Answer

Minimum scores start around 620, though 660 or higher improves your rate and terms. Higher credit scores may also reduce down payment requirements and offset self-employment income challenges.

Question 5

How much down payment is required?

Accepted Answer

Expect 10-20% down for most 1099 loan programs. Exact requirements depend on your credit profile, loan amount, and property type. Higher down payments often secure better interest rates.

1099 Loans in Brentwood: Financing for Self-Employed Contra Costa County Homebuyers