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1099 Loans in Santa Monica
Santa Monica's economy runs on freelancers, consultants, and entrepreneurs. Traditional W-2 documentation won't capture what you actually earn.
Most conventional lenders reject 1099 borrowers outright. They want tax returns showing maximum deductions, which kills your qualifying income.
1099 loans solve this by using your gross 1099 income before business write-offs. You qualify based on what you actually make, not what you report to the IRS.
You need 12-24 months of 1099 forms from consistent clients. Lenders average your gross income across that period to set your qualifying number.
Credit scores start at 620, but 680+ gets better rates. Down payments run 10-20% depending on loan amount and property type.
Most lenders want at least two years of self-employment history. Switching from W-2 to 1099 recently creates complications even if income is strong.
You won't find this product at Chase or Wells Fargo. Non-QM lenders handle 1099 loans, and they price deals differently based on your documentation strength.
Rates run 1-2% above conventional loans. That spread narrows with larger down payments and higher credit scores.
Brokers access 30-40 non-QM lenders who compete on these deals. Direct lending means you get one underwriter's interpretation of your 1099 income.
The lenders who approve you fastest are the ones who see consistent 1099 income from 3-5 clients. Single-client 1099 workers get more scrutiny because it looks like W-2 employment.
Santa Monica tech contractors and entertainment industry freelancers do well with these loans. Your income pattern matters more than your job title.
Don't clean up your 1099 situation right before applying. Lenders want to see the same income pattern for 12-24 months. Sudden changes trigger underwriting questions.
Bank statement loans work if your 1099 income is inconsistent or if you mix 1099 and business income. You'll pay slightly higher rates but get more underwriting flexibility.
Profit and loss loans let you write your own income calculation. They require a CPA signature and cost more than 1099 loans.
1099 loans are the cleanest documentation path for pure contractors. If that describes you, this loan type will cost less than alternatives.
Santa Monica pricing pushes many deals into jumbo territory above $766,550. Jumbo 1099 loans exist but require 15-20% down and 700+ credit scores.
Condos near the beach need full reserves and HOA financial review. These properties already face stricter conventional guidelines, and non-QM lenders add their own overlays.
The city's rent control laws don't affect owner-occupied purchases, but lenders notice investment property trends. Pure 1099 income on a rental purchase gets harder to approve.
Yes, but expect extra scrutiny. Lenders worry single-client 1099 workers are actually employees and want letters confirming contractor status.
Lenders average 12-24 months of income. Seasonal variation is fine as long as the pattern is consistent year over year.
Most 1099 loan programs skip tax returns entirely. Some lenders want them for credit review but won't use them to calculate income.
Loan amounts follow your gross 1099 income averaged over 12-24 months. Most programs cap at $3-4 million with 20% down and strong credit.
You need 12 months minimum. Some lenders accept 12-month history if you worked the same field as a W-2 employee before going independent.
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.