Question 1

Can I use 1099 income from multiple clients?

Accepted Answer

Yes, lenders combine income from all 1099 sources. You need documentation for each client and consistent industry focus across contracts.

Question 2

Do I need two years of self-employment history?

Accepted Answer

Most lenders require 24 months in the same field. Some portfolio lenders approve borrowers with 12 months if income is strong and stable.

Question 3

How do lenders calculate my qualifying income?

Accepted Answer

They average gross 1099 receipts over 12-24 months before deductions. This differs from tax return analysis which penalizes business write-offs.

Question 4

What if my 1099 income varies seasonally?

Accepted Answer

Lenders average your income across the full review period. Provide explanation letters for seasonal patterns to avoid underwriter red flags.

Question 5

Are rates higher than conventional loans?

Accepted Answer

Yes, expect 0.75-2.00 points above conforming rates. Stronger credit and larger down payments reduce the rate premium.

1099 Loans in Rolling Hills: Financing for High-Earning Independent Contractors