Question 1

Can I use 1099 income from just one year?

Accepted Answer

Most lenders require two years of 1099 history. Some programs accept one year if you show very strong income and credit, but expect higher rates and down payment requirements.

Question 2

Do lenders count all my 1099 income?

Accepted Answer

They use gross receipts before business deductions. This means you qualify on what you actually earned, not the reduced amount shown on your tax return after write-offs.

Question 3

What if my 1099 income varies each month?

Accepted Answer

Lenders average your income over 12 or 24 months. Large fluctuations make underwriting harder, which is why bank statement loans often work better for seasonal contractors.

Question 4

How much does a 1099 loan cost compared to conventional?

Accepted Answer

Rates run 0.5-1.5% higher than conventional mortgages. You'll also see slightly higher closing costs due to non-QM loan structure and additional underwriting requirements.

Question 5

Can I buy investment property with a 1099 loan in Cerritos?

Accepted Answer

Yes, but expect 20-25% down minimum. Lenders tighten requirements on non-owner occupied properties, especially with non-QM loan programs.

1099 Loans in Cerritos: Financing Built for Independent Contractors