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1099 Loans in Long Beach
Long Beach has one of California's largest freelance economies. Port workers, tech contractors, and creative professionals dominate the self-employed landscape here.
Traditional lenders reject most 1099 earners because tax write-offs reduce qualifying income. You need a lender who underwrites to actual cash flow, not adjusted gross income.
Most independent contractors in Long Beach show 30-50% less income on their tax returns than they actually earn. That gap is exactly what 1099 loans solve.
You need 12-24 months of 1099 history in the same industry. Lenders verify income through business bank deposits, not tax returns.
Credit minimums start at 620, but most approvals happen above 660. Down payment requirements run 10-20% depending on your income documentation strength.
Self-employment gaps longer than 6 months reset the clock. You'll need to rebuild that 12-month track record before qualifying.
Debt-to-income ratios cap at 50% with strong compensating factors. Lenders calculate income from bank deposits minus business expenses you can document.
Maybe 15 of our 200+ lenders actually understand 1099 income. The rest will route you toward stated income programs that cost 2-3% more in rate.
Portfolio lenders price these loans 0.75-1.5% above conventional rates. That spread reflects manual underwriting and reduced secondary market demand.
Most brokers push bank statement loans instead because they're easier to process. But if your business expenses are low, 1099 documentation often qualifies you for more house.
Rates vary by borrower profile and market conditions. Expect pricing to shift based on credit score, down payment, and income consistency.
Don't file your taxes right before applying for a mortgage. Every write-off you take reduces your qualifying income by the same amount.
We calculate your income from gross 1099 receipts minus only the expenses you can prove with receipts. Mileage and home office deductions don't count against you here.
Long Beach gig workers often carry multiple 1099s across different platforms. That's fine as long as the total history spans 12+ months in related fields.
If you switched from W-2 to 1099 in the same industry, some lenders will blend the income history. But you still need 6 months minimum on 1099 status.
Bank statement loans qualify you on deposits alone, no 1099 forms needed. They're the better choice if you mix cash income with documented revenue.
P&L loans let you use an accountant-prepared statement instead of tax returns. You'll pay 0.25-0.5% more in rate for that flexibility.
Asset depletion makes sense if you have $500K+ in liquid accounts but inconsistent 1099 income. Lenders divide your assets by 360 months to create qualifying income.
Standard 1099 loans beat all three options when your income is clean, documented, and consistent. You'll get the best rate and the highest loan amount.
Long Beach's port-related contractor work creates seasonal income swings. Lenders average your trailing 12 months, so winter slowdowns get smoothed out.
The city's entertainment and creative sectors run heavily on 1099 income. Underwriters here see more freelance video, design, and marketing income than most California markets.
Belmont Shore and Naples Island properties often exceed conforming loan limits. You'll need a jumbo 1099 program, which typically requires 720+ credit and 20% down.
Downtown Long Beach condo projects have varying FHA approval status. Even though 1099 loans are non-QM, building financial health still matters for approval.
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.
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.
That's fine as long as they're in related fields. We verify each income source and add them together for total qualifying income.
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.
Yes. We qualify you on total income from all sources. The 1099 portion just needs its own 12-month history in a related field.
Yes. We need positive cash flow after documented expenses. Losses or break-even operations don't create qualifying income for mortgage approval.
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.