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1099 Loans in Cerritos
Cerritos sits in the heart of LA County's professional corridor. The city draws consultants, tech contractors, and gig economy workers who can't qualify through traditional W-2 channels.
Most 1099 earners here hit a wall with conventional loans. Bank statement and profit & loss programs unlock mortgages for independent contractors who show strong income but lack traditional payroll documentation.
We see heavy demand from self-employed professionals buying in Cerritos neighborhoods near major corporate centers. These borrowers often earn well above median income but need non-QM loan structures to prove it.
You need 12-24 months of consistent 1099 income. Lenders use your gross receipts before deductions, which means you qualify based on what you actually earn, not what you report to the IRS.
Credit scores start at 620 for most programs. Higher scores unlock better rates. You'll need 10-20% down depending on loan amount and property type.
Most lenders require at least two years in your field. Switching from W-2 to 1099 recently? You'll need a two-year self-employment history before these programs work.
Banks won't touch these loans. You need wholesale lenders who specialize in non-QM programs and understand contractor income patterns.
We work with 200+ wholesale lenders who price 1099 loans competitively. Rates run 0.5-1.5% higher than conventional mortgages because of the non-QM structure.
Some lenders cap loan amounts at $1.5 million for 1099 programs. Others go higher but tighten credit and down payment requirements. Finding the right lender match matters more here than with conventional loans.
Most 1099 borrowers leave money on the table by not organizing their documentation. Clean, consecutive 1099 forms from recognizable clients make underwriting faster and pricing better.
We push borrowers toward bank statement loans when their 1099 income fluctuates seasonally. Those programs smooth out income calculations over 12 or 24 months instead of requiring year-over-year consistency.
Cerritos buyers often work for multiple clients. Lenders prefer seeing three or fewer income sources. More than that triggers extra scrutiny and potentially higher rates.
Bank statement loans offer a cleaner path if you have decent business account activity. You skip the 1099 paperwork and qualify purely on deposits.
Profit & loss statement loans work when your 1099 income is recent but strong. They require a CPA letter but can get you approved with less history than traditional 1099 programs.
Asset depletion loans make sense for contractors who've built savings but show low reportable income. Lenders calculate qualifying income from your investment accounts instead of tax returns.
LA County has the largest independent contractor workforce in California. Lenders here understand gig economy income better than in most markets.
Cerritos property values favor borrowers who can document strong 1099 income. You're competing against traditional W-2 buyers, so showing reliable earnings history strengthens your offer.
Proximity to aerospace, tech, and healthcare employers drives contractor concentration. Lenders view 1099 income from established companies more favorably than work for small unknown clients.
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.
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.
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.
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.
Yes, but expect 20-25% down minimum. Lenders tighten requirements on non-owner occupied properties, especially with non-QM loan programs.
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.