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1099 Loans in Reedley
Reedley's agricultural economy creates steady 1099 income for farm labor contractors, equipment operators, and seasonal business owners. Traditional lenders struggle with income that fluctuates by harvest season.
Most borrowers in Fresno County who earn 1099 income face rejection at conventional banks. Those lenders want two years of tax returns showing consistent W-2 wages, which doesn't match how self-employment works in farming communities.
You need 12-24 months of consistent 1099 income from the same clients or industry. Lenders calculate your qualifying income by averaging deposits, not what you reported to the IRS.
Credit scores start at 600 for most programs. Down payments range from 10% to 20% depending on your credit profile and how long you've been self-employed.
We work with 15-20 non-QM lenders who actively fund 1099 loans in Fresno County. These aren't portfolio lenders sitting on loans—they securitize and sell, which keeps rates competitive.
Rate spreads between lenders hit 0.75% to 1.25% on identical borrower profiles. One lender prices farm contractors aggressively while another won't touch seasonal income. Shopping across our network matters.
Reedley borrowers with multiple 1099 clients get better pricing than those dependent on one contractor. Lenders view diversified income streams as less risky, even if total earnings stay the same.
Don't write off every business expense before applying. Yes, you saved on taxes. But aggressive deductions create low qualifying income that kills your buying power. Plan loan applications around your tax strategy.
Bank statement loans pull 12-24 months of deposits and average them. That works if you're mixing 1099 income with cash payments or running everything through one account.
Profit and loss statement loans require a CPA to prepare financials. You'll pay $500-$1,500 for that documentation. Most 1099 borrowers skip that cost and go straight to bank statement programs instead.
Reedley home prices sit below Fresno metro averages, which helps self-employed borrowers qualify with smaller loan amounts. Lower purchase prices mean smaller income requirements even with non-QM pricing.
Fresno County appraisals can drag on rural properties or homes near agricultural land. Build extra time into your timeline if you're buying outside city limits. Lenders won't fund until appraisal clears.
Most lenders want 12 months minimum. A few will consider six months if you worked in the same industry as a W-2 employee before going independent.
No. Lenders verify income through your 1099 forms and bank statements showing deposits. Your tax returns don't factor into approval or income calculation.
Lenders average your income across 12-24 months. Seasonal fluctuations work fine as long as your average meets debt-to-income requirements.
Expect 1.5% to 3% higher than conventional rates. Exact pricing depends on credit score, down payment, and how clean your income documentation looks.
Yes. Multiple income sources actually help your application. Lenders see diversified client bases as more stable than relying on one contractor.
Absolutely. Many lenders offer 1099 programs for investment purchases. Down payments start at 20% for rental properties with projected income helping qualification.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.