Question 1

Can I qualify with only one year of 1099 income?

Accepted Answer

Most lenders require two years in the same field. Some accept one year if you transitioned from W-2 work in the same industry and show strong income.

Question 2

Do I need to provide business bank statements?

Accepted Answer

No. 1099 loans use your tax forms only. If you mix business and personal accounts, bank statement loans might work better.

Question 3

What if my 1099 income dropped last year?

Accepted Answer

Lenders average the two most recent years. A 20% drop usually works. Anything steeper requires a written explanation and may need compensating factors.

Question 4

Can I use 1099 income from multiple clients?

Accepted Answer

Yes. Lenders prefer diversified income. Just make sure all 1099s are in the same industry to prove consistent work history.

Question 5

How do oil price swings affect my approval?

Accepted Answer

Lenders understand commodity cycles. If you've maintained contracts through price dips, that stability helps. Two-year income averaging smooths volatility.

1099 Loans in Taft: Financing Built for Self-Employed Oil & Energy Workers