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Martinez attracts independent contractors who value the walkable downtown and Amtrak access to Bay Area clients. Traditional lenders reject most 1099 earners because they can't verify income through W-2s.
Non-QM lenders built 1099 loans specifically for freelancers, consultants, and gig workers. Your tax returns and 1099 forms replace pay stubs in the approval process.
Most lenders require two years of 1099 income from the same industry or client base. They average your income across 12 or 24 months, not just your best year.
Credit minimums start at 620, but stronger scores above 680 unlock better rates. You'll need standard down payments—typically 10-20% depending on the property type and loan amount.
Banks won't touch 1099 income because Fannie Mae and Freddie Mac don't accept it. Non-QM lenders price these loans higher than conventional mortgages to offset the added risk.
Expect rates 1-2% above conventional programs. Rates vary by borrower profile and market conditions. Shopping across multiple non-QM lenders saves thousands over the loan term.
Many freelancers write off business expenses that tank their qualifying income. A consultant earning $180k might show $90k after deductions, which only qualifies them for a $360k mortgage.
We see this constantly in Martinez where contractors want homes in the $600-800k range but qualified income doesn't support it. Plan your tax strategy two years before buying, not two months.
Bank Statement Loans let you qualify on deposits instead of tax returns. That works better if you're drowning in deductions but have strong monthly cash flow.
Profit & Loss Statement Loans use a CPA-prepared P&L instead of full tax returns. Asset Depletion Loans ignore income entirely and qualify you based on investment accounts.
Martinez home prices favor contractors who can document stable income. The compact market means fewer investor flips and more owner-occupied properties that appraise cleanly.
Waterfront condos near the marina and historic downtown homes both qualify, but condos require additional HOA review. Some non-QM lenders cap warrantable condo financing, limiting your options.
Yes, lenders combine income from multiple sources if you've worked in the same field for two years. They want consistent industry focus, not random gig work.
You need both. Lenders verify your 1099 forms match the income reported on your tax returns. Mismatches kill the application immediately.
Most lenders require 24 months of self-employment history. One year rarely works unless you transitioned from W-2 work in the identical role.
They take your adjusted gross income from tax returns, not your 1099 totals. Business deductions reduce what you can borrow.
Yes, but most non-QM lenders require larger down payments on 2-4 unit properties. Expect 20-25% down instead of 10-15%.
1099 Loans in Martinez