Question 1

Can I qualify for a 1099 loan with only one year of self-employment?

Accepted Answer

Some lenders accept 12 months of 1099 income history, especially with strong credit and larger down payments. Two years of history typically provides better rates and terms.

Question 2

Do 1099 loans require me to file tax returns?

Accepted Answer

Most programs don't require tax returns, which helps if your returns show minimal income due to business deductions. Lenders verify income through 1099 forms and bank statements instead.

Question 3

How do lenders calculate my income from 1099 forms?

Accepted Answer

Lenders typically average your 1099 income over 12-24 months. Some allow CPAs to provide calculations that add back legitimate business expenses to show true earning capacity.

Question 4

What down payment do I need for a 1099 loan in Lafayette?

Accepted Answer

Down payments typically range from 10% to 20%. Higher down payments often secure better rates and terms, especially for borrowers new to self-employment.

Question 5

Are 1099 loan interest rates higher than conventional mortgages?

Accepted Answer

Rates vary by borrower profile and market conditions. Expect rates 0.5% to 2% above conventional loans, reflecting the alternative documentation and specialized underwriting involved.

1099 Loans in Lafayette: Financing for Self-Employed Homebuyers