Question 1

Can I qualify with only six months of 1099 income?

Accepted Answer

Most lenders require 12 months minimum. A few will consider six months if you transitioned from W-2 work in the same field and show strong current contracts.

Question 2

Do lenders use my gross 1099 income or net after expenses?

Accepted Answer

They start with gross 1099 earnings and subtract typical industry expenses, usually 10-30%. This beats tax return underwriting where heavy write-offs crush qualifying income.

Question 3

What if my 1099 income fluctuates between months?

Accepted Answer

Lenders average your past 12-24 months. Seasonal variation is fine as long as the trend is stable or growing, not declining significantly year over year.

Question 4

How do Moraga's property values affect my loan amount?

Accepted Answer

Most 1099 programs cap around $3-4 million. Moraga's median prices fit comfortably within those limits for borrowers with strong income documentation.

Question 5

Can I use 1099 income from multiple clients?

Accepted Answer

Yes. Diversified income across 3-5 clients actually strengthens your file versus reliance on a single contract that could end abruptly.

1099 Loans in Moraga: Mortgages Built for Independent Contractors