Question 1

Can I use one year of 1099s to qualify in Arcata?

Accepted Answer

Some lenders accept one year, but two years is stronger. One year requires a solid credit profile and clean income history.

Question 2

Do I need to be incorporated to get a 1099 loan?

Accepted Answer

No. Sole proprietors qualify. You just need documented 1099 income from one or more clients over the past 1-2 years.

Question 3

How is my income calculated on a 1099 loan?

Accepted Answer

Lenders use gross 1099 income, sometimes with a small expense factor applied. Your tax write-offs don't reduce it the way they do on conventional loans.

Question 4

What property types can I buy with a 1099 loan in Humboldt County?

Accepted Answer

Most single-family homes qualify. Condos and rural properties may face additional lender review depending on the program.

Question 5

Are 1099 loan rates higher than conventional rates?

Accepted Answer

Yes, typically. Non-QM products carry a rate premium for the added flexibility. Rates vary by borrower profile and market conditions.

Question 6

Can I refinance my current home using 1099 income?

Accepted Answer

Yes. 1099 loans work for refinances too. The same income documentation rules apply as with a purchase.

1099 Loans in Arcata, CA for Independent Contractors