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Arcata's economy runs on freelancers, contractors, and self-employed workers. Traditional W-2 financing shuts out a huge chunk of this workforce.
1099 loans use your actual 1099 income to qualify — not a tax return gutted by write-offs. That changes everything for contractors here.
620+
Min Credit Score
1-2 Years of 1099s
Income Docs Needed
10-20%
Down Payment
Non-QM
Loan Type
You'll need 1-2 years of 1099s showing consistent income. Lenders want to see you're working in the same field throughout.
Credit scores typically start at 620. Expect a down payment of 10-20% depending on the lender and your income history.
Most retail banks won't touch 1099 loans. This product lives in the wholesale and non-QM lending space.
At SRK CAPITAL, we work with 200+ wholesale lenders. We find who's pricing 1099 loans competitively right now — not just who's available.
The biggest mistake 1099 borrowers make: waiting until after tax season to apply. Heavy write-offs kill your qualifying income.
We pull your gross 1099 income before deductions. That number is almost always higher than what your tax return shows.
Bank statement loans are the closest alternative. They use 12-24 months of deposits instead of 1099s.
If your 1099 income is clean and easy to document, 1099 loans often price better than bank statement products.
Humboldt County has a high concentration of independent contractors in trades, agriculture, and creative fields.
Arcata's tight housing inventory means moving fast matters. Having your 1099 loan pre-approval ready is not optional.
Some lenders accept one year, but two years is stronger. One year requires a solid credit profile and clean income history.
No. Sole proprietors qualify. You just need documented 1099 income from one or more clients over the past 1-2 years.
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.
Most single-family homes qualify. Condos and rural properties may face additional lender review depending on the program.
Yes, typically. Non-QM products carry a rate premium for the added flexibility. Rates vary by borrower profile and market conditions.
Yes. 1099 loans work for refinances too. The same income documentation rules apply as with a purchase.
1099 Loans in Arcata