Question 1

Can I qualify with only 6 months of 1099 income?

Accepted Answer

Not for most programs. You need 12 months minimum, 24 months preferred. Some lenders blend W-2 history if you stayed in the same industry when switching to contract work.

Question 2

Do my tax write-offs hurt my qualifying income?

Accepted Answer

Only if we use tax returns for qualification. With 1099 loan programs, we calculate income from bank deposits minus documented expenses, ignoring most tax deductions.

Question 3

What if I have multiple 1099 clients?

Accepted Answer

That's fine as long as they're in related fields. We verify each income source and add them together for total qualifying income.

Question 4

How much more expensive are 1099 loans than conventional?

Accepted Answer

Rates run 0.75-1.5% higher than conventional programs. Rates vary by borrower profile and market conditions, with better pricing for higher credit scores and larger down payments.

Question 5

Can I use 1099 income and W-2 income together?

Accepted Answer

Yes. We qualify you on total income from all sources. The 1099 portion just needs its own 12-month history in a related field.

Question 6

Do I need to show profit on my 1099 work?

Accepted Answer

Yes. We need positive cash flow after documented expenses. Losses or break-even operations don't create qualifying income for mortgage approval.

1099 Loans in Long Beach: Financing for Independent Contractors