Question 1

How much 1099 income do I need to qualify in Clayton?

Accepted Answer

Lenders calculate your debt-to-income ratio using gross 1099 earnings. Most want total debts below 50% of your monthly income before business expenses.

Question 2

Can I use 1099 income from multiple clients?

Accepted Answer

Yes, lenders combine income from all 1099 sources. They look for consistency across 12-24 months, not income from a single client.

Question 3

Do I need two years of tax returns for a 1099 loan?

Accepted Answer

No, that's conventional financing. 1099 loans use your actual 1099 forms, not tax returns. This lets you qualify on income you wrote off.

Question 4

What if my 1099 income varies seasonally?

Accepted Answer

Lenders average your income across the documentation period. Seasonal variation is fine as long as the pattern is consistent year over year.

Question 5

How long does 1099 loan approval take in Clayton?

Accepted Answer

Expect 3-4 weeks from application to closing. Non-QM underwriting takes longer than conventional but moves faster than portfolio loans.

1099 Loans in Clayton: Financing for Self-Employed Buyers