Question 1

Can I qualify with only one year of 1099 income?

Accepted Answer

Some non-QM lenders approve borrowers with 12 months of 1099 history if you have strong credit and reserves. Two years remains the standard for most programs.

Question 2

Do lenders add back my business write-offs?

Accepted Answer

No. 1099 loans use gross income reported on your forms, not adjusted income after deductions. Bank statement loans work better if write-offs reduce your taxable income significantly.

Question 3

What if my 1099 income dropped last year?

Accepted Answer

Lenders average both years, so one down year doesn't disqualify you. A decline over 20% requires a written explanation and approval depends on the reason and your overall profile.

Question 4

How do seasonal contractors get approved?

Accepted Answer

We use lenders familiar with agricultural income patterns. They average earnings across 24 months instead of flagging seasonal gaps as employment instability.

Question 5

Can I combine 1099 and W-2 income?

Accepted Answer

Yes. Most lenders count both income types when qualifying you. This works well for borrowers transitioning from W-2 work to full-time contracting.

1099 Loans in Westmorland: Financing for Self-Employed Borrowers