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1099 Loans in Taft
Taft's economy includes independent contractors, small business owners, and freelancers across oil, agriculture, and service industries. Traditional lenders often struggle to evaluate 1099 income, even when self-employed borrowers earn consistently.
This loan program uses your 1099 forms to verify income without requiring two years of tax returns. The approach works well for contractors whose business expenses reduce their taxable income but who maintain strong cash flow.
Lenders typically require 12-24 months of 1099 income documentation from the same clients or industries. Credit scores generally start at 620, though some programs accept lower scores with larger down payments.
Down payment requirements usually range from 10% to 20% depending on credit profile and income consistency. You'll need to show that your 1099 income represents stable, ongoing work rather than sporadic projects.
Most traditional banks won't offer 1099 loans because they fall outside conventional guidelines. Specialized non-QM lenders understand self-employed income patterns and evaluate applications differently than portfolio lenders.
Working with a broker gives you access to multiple non-QM lenders who compete for your business. Each lender calculates income differently—some use gross 1099 amounts while others apply industry-standard expense deductions.
Many self-employed borrowers don't realize they qualify when traditional lenders turn them down. The key is presenting your 1099 income properly—we organize documentation to highlight consistency and growth rather than tax-minimization strategies.
Rates vary by borrower profile and market conditions, but expect pricing 1-3% higher than conventional loans. The trade-off is approval based on actual earnings instead of artificially low taxable income. For many contractors, this access to financing justifies the rate difference.
Bank Statement Loans offer an alternative for self-employed borrowers who mix personal and business expenses. That program analyzes 12-24 months of deposits instead of 1099 forms, which works better if you receive payments through multiple channels.
Profit & Loss Statement Loans suit established business owners with complex operations. If your 1099 income is straightforward and comes from predictable sources, this simpler program often processes faster and requires less documentation than P&L-based financing.
Taft's housing market includes older homes and manufactured housing alongside traditional single-family properties. Some 1099 loan programs have restrictions on property type and age, so clarify these limits before making offers.
Independent contractors in Kern County's oil and agriculture sectors often see seasonal income fluctuations. Lenders evaluate whether variations represent normal business cycles or income instability—consistent annual totals matter more than month-to-month changes.
Yes, most lenders combine 1099 income from all sources. They prefer seeing income diversity across multiple clients rather than dependence on a single contract, as this demonstrates income stability.
Most 1099 loan programs don't require tax returns, though some lenders request them for background verification without using them for income calculation. This lets you qualify on gross 1099 amounts.
Lenders typically want 12-24 months of 1099 history in the same field. Newer contractors may need to wait or explore other non-QM options that accept shorter income histories with compensating factors.
They contact the businesses that issued your 1099 forms to confirm amounts and ongoing relationships. Some also verify deposits into your bank accounts match your reported 1099 income.
Rates vary by borrower profile and market conditions. Expect 1-3% above conventional rates due to specialized underwriting, though strong credit and larger down payments reduce this premium significantly.
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.