Question 1

Can I qualify with only one year of 1099 income?

Accepted Answer

Most lenders require two years of 1099 history to establish income consistency. Some programs accept one year with compensating factors like higher credit scores or larger down payments.

Question 2

How do lenders calculate my qualifying income from 1099 forms?

Accepted Answer

Lenders review your tax returns and average your net income over two years. They typically use Schedule C to calculate earnings after business expenses.

Question 3

What if my business deductions reduce my tax return income?

Accepted Answer

Consider bank statement loans instead. These programs use deposit activity rather than taxable income, helping borrowers who write off legitimate expenses.

Question 4

Do 1099 loans have higher interest rates than conventional mortgages?

Accepted Answer

Rates vary by borrower profile and market conditions. Expect slightly higher rates than conventional loans due to the Non-QM structure and flexible documentation.

Question 5

Can I buy investment property in Huron with a 1099 loan?

Accepted Answer

Yes, many 1099 loan programs work for investment properties. Requirements typically include higher down payments and stronger credit profiles for non-owner occupied purchases.

1099 Loans in Huron: Financing Solutions for Self-Employed Borrowers