Question 1

What makes a 1099 loan different from a regular mortgage in Commerce?

Accepted Answer

1099 loans use your contractor income forms instead of tax returns. This lets you qualify on gross income without deductions reducing your qualifying amount. It's designed specifically for independent contractors.

Question 2

How much 1099 income history do I need?

Accepted Answer

Most lenders want 12-24 months of 1099 income documentation. Some programs accept one year if you have strong credit and reserves. Consistent income from the same sources strengthens your application.

Question 3

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

Accepted Answer

Yes, 1099 loans work for primary homes, second homes, and investment properties. Investment properties may require larger down payments. Rates vary by borrower profile and market conditions.

Question 4

What credit score do I need for a 1099 loan?

Accepted Answer

Minimum credit scores typically start at 600 for 1099 loan programs. Higher scores unlock better rates and lower down payment options. Compensating factors can help if your score is borderline.

Question 5

Do 1099 loans cost more than conventional mortgages?

Accepted Answer

1099 loans generally have slightly higher rates than conventional loans. The trade-off is easier qualification for self-employed borrowers. Rates vary by borrower profile and market conditions.

1099 Loans in Commerce, CA – Financing for Independent Contractors