Question 1

Can I use 1099 income from multiple clients?

Accepted Answer

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.

Question 2

What if I just started receiving 1099 income this year?

Accepted Answer

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.

Question 3

Do I need to show all my business expenses?

Accepted Answer

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.

Question 4

How do rates compare to conventional loans in Sierra Madre?

Accepted Answer

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.

Question 5

Can I buy a multi-unit property with 1099 income?

Accepted Answer

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.

1099 Loans in Sierra Madre: Financing for Self-Employed Homebuyers