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1099 Loans in Bell
Bell's housing stock skews toward multi-family properties and smaller single-family homes. Most traditional lenders won't count your full 1099 income without two years of tax returns showing aggressive write-offs.
Independent contractors in Bell—landscapers, construction workers, delivery drivers—often gross strong income but show minimal net after deductions. That's where 1099 loans bypass the tax return problem entirely.
You need 12-24 months of 1099 forms from at least one client. Lenders typically want 10-20% down, minimum 620 credit score, and proof you've been in your trade for at least a year.
Some programs let you use just 6 months of 1099s if income is consistent. The underwriter calculates monthly qualifying income by averaging your 1099 deposits, not what you reported to the IRS.
Most retail banks don't offer 1099 programs. You're looking at non-QM lenders who underwrite to investor guidelines, not Fannie/Freddie rules.
Rates run 1-2% higher than conventional loans. Expect 7-9% depending on credit and down payment. Broker access matters here—wholesale lenders offer better pricing than hard money shops advertising on bus benches.
I see 1099 borrowers get rejected for conventional loans, then qualify easily with the same income under a 1099 program. The difference: one counts gross deposits, the other counts net after write-offs.
Bell buyers using 1099 loans typically purchase in the $400K-$550K range. That's small single-family homes or investment duplexes. Make sure your 1099s show consistent monthly income—sporadic big checks require explanation letters.
Bank statement loans pull deposits from all sources. 1099 loans only count verified 1099 income. If you commingle personal and business funds, bank statements get messy fast.
P&L loans need a CPA signature and two years in business. 1099 loans skip both requirements. You trade higher rates for faster approval and simpler docs.
Bell sits in southeast LA County where property insurance has jumped 40% in two years. Your debt-to-income ratio needs room for higher insurance costs that weren't on older comps.
Many Bell properties are older construction with deferred maintenance. Expect appraisers to flag roof age, foundation issues, or unpermitted work. 1099 loans follow standard appraisal rules—condition matters.
Yes. Most lenders want at least one consistent source showing 12+ months. Multiple 1099s from different clients get averaged together.
No. Unlike conventional loans, 1099 programs typically require just one year in your current trade or profession with documented income.
Underwriters average the total. Big swings need explanation letters. Consistent quarterly patterns work better than random spikes.
Yes. Many borrowers use 1099 loans for duplexes and small multi-family buildings. Down payment requirements increase to 20-25% for non-owner-occupied.
Typically 3-4 weeks. Faster than tax return loans because there's no Schedule C analysis. Slower than stated income loans that no longer exist.
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.