Question 1

Can I use 1099 income if I just started contracting this year?

Accepted Answer

No. Lenders require two years of 1099 income in the same field. One year of history won't qualify under these programs.

Question 2

Do lenders average my 1099 income across two years?

Accepted Answer

Usually they take your most recent year if income is stable or rising. Declining income gets averaged or uses the lower year depending on the lender.

Question 3

What if I have multiple 1099s from different clients?

Accepted Answer

That's fine as long as the work is similar. Lenders combine all 1099 income in your field to calculate total qualifying income.

Question 4

How do rates compare to conventional loans?

Accepted Answer

Expect 0.5-2% higher than conventional rates. Rates vary by borrower profile and market conditions—stronger credit and larger down payments get better pricing.

Question 5

Can I refinance with 1099 income?

Accepted Answer

Yes. Same two-year income requirement applies. Cash-out refinances typically require 15-20% equity and slightly higher rates than purchase loans.

1099 Loans in San Pablo: Financing for Independent Contractors