Question 1

Can I use 1099 income from multiple clients to qualify?

Accepted Answer

Yes, lenders combine income from all your 1099 sources when calculating qualifying income. Showing multiple client relationships often strengthens your application by demonstrating income diversification.

Question 2

How do lenders calculate my qualifying income from 1099 forms?

Accepted Answer

Lenders typically average your gross 1099 income over 12-24 months. Some programs allow expense deductions similar to tax calculations, while others use gross income figures for more favorable qualification.

Question 3

What if I've been self-employed less than two years?

Accepted Answer

Some lenders accept one year of self-employment if you have prior related work history. The stronger your income documentation and credit profile, the more flexibility you'll find in program options.

Question 4

Do 1099 loans have higher interest rates than conventional mortgages?

Accepted Answer

Rates are typically higher than conventional loans due to Non-QM program structure. Rates vary by borrower profile and market conditions, but many borrowers find the trade-off worthwhile for approval flexibility.

Question 5

Can I refinance from a 1099 loan to conventional later?

Accepted Answer

Absolutely. Many borrowers use 1099 loans initially, then refinance to conventional programs once they have two years of tax returns showing sufficient income or change to W-2 employment.

1099 Loans in Firebaugh: Mortgage Solutions for Self-Employed Professionals