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1099 Loans in Sierra Madre
Sierra Madre's cottage-style homes and tree-lined streets attract creative professionals, consultants, and tech freelancers. Many earn strong 1099 income but face rejection from conventional lenders who don't know how to underwrite it.
Traditional mortgage underwriting penalizes self-employed borrowers with aggressive write-offs. A 1099 loan uses your gross receipts, not taxable income, to calculate what you can afford.
You need 12-24 months of 1099 income history from the same line of work. Lenders verify your income through 1099 forms and sometimes business bank statements to confirm deposits match what you reported.
Credit scores start at 620, but expect better rates above 680. Down payments typically range from 10-20%, depending on whether the property is your primary residence or an investment.
Most banks won't touch 1099 loans because they don't fit Fannie Mae guidelines. This is Non-QM territory, which means portfolio lenders and specialty finance companies set their own rules.
SRK CAPITAL works with 200+ wholesale lenders who actually understand self-employed income. We match your 1099 structure to lenders who price it competitively, not reject it automatically.
The biggest mistake I see is borrowers applying at their local bank first. Banks run conventional underwriting, get a denial, then report it to credit bureaus. That inquiry costs you points and wastes time.
Come to a broker before you apply anywhere. We pre-qualify your 1099 income structure, identify which lenders will approve it, and submit only when we know it will clear. That saves your credit score and gets you to closing faster.
Bank Statement Loans average your deposits over 12-24 months, which works well for freelancers with irregular income. 1099 loans calculate directly from your forms, which is cleaner if your income is steady and well-documented.
Profit & Loss Statement Loans require a CPA to prepare financials, adding cost and time. If you have clean 1099s and matching bank deposits, this is the simpler path. We compare all three options based on your actual records.
Sierra Madre properties often need updates or have deferred maintenance from long-term owners. Some 1099 lenders cap renovation budgets or require completion before closing, which matters if you're eyeing a fixer.
The city's historic districts and hillside lots can trigger appraisal challenges. Work with a broker who knows which lenders have experience with non-tract properties and won't lowball valuations on unique homes.
Yes, lenders combine income from all 1099 sources as long as they're in the same field. You need at least 12 months of history in that line of work.
Most lenders require 12-24 months of history. If you're newer, Bank Statement Loans may work better since they focus on deposit patterns, not income duration.
No, that's the advantage. Lenders use gross 1099 income, not your net after write-offs. Your tax strategy doesn't hurt your buying power.
Expect 1-2% higher than conventional rates. Rates vary by borrower profile and market conditions, but the trade-off is approval when W-2 underwriting would deny you.
Yes, many 1099 lenders allow 2-4 unit properties. You'll need a larger down payment, typically 20-25%, and rental income from other units can boost qualification.
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.