Question 1

Can I qualify if I just started receiving 1099 income this year?

Accepted Answer

Most lenders require 12-24 months of history. If you transitioned from W-2 to 1099 in the same field, some lenders combine work history. Pure startups under 12 months typically don't qualify.

Question 2

Do 1099 loans have higher interest rates than conventional mortgages?

Accepted Answer

Yes, expect rates 0.5-1.5% above conventional. You're paying for documentation flexibility. Strong credit and larger down payments get pricing closer to traditional loans.

Question 3

What if I have multiple 1099 clients throughout the year?

Accepted Answer

That's fine as long as total income remains consistent. Lenders care about deposit patterns, not how many sources contribute. Three steady clients often looks better than one.

Question 4

Can I use 1099 income to buy an investment property in Orinda?

Accepted Answer

Yes, though down payments increase to 20-25% minimum. Lenders price investment properties higher and scrutinize income stability more carefully than primary residences.

Question 5

How do lenders calculate my qualifying income from bank deposits?

Accepted Answer

They total deposits over 12-24 months and divide by months used. Business expenses deposited then withdrawn typically get subtracted. Each lender uses slightly different calculations.

1099 Loans in Orinda: Financing That Works for Independent Contractors