Loading
1099 Loans in South Pasadena
South Pasadena attracts creative professionals, consultants, and tech contractors who don't fit traditional mortgage boxes. Standard lenders reject 1099 earners even when they clear six figures annually.
Non-QM lenders built 1099 loans specifically for independent contractors who show strong income but lack W-2 documentation. Your tax returns tell a different story than your actual cash flow.
You need 12-24 months of consistent 1099 income from the same industry or client base. Lenders calculate your qualifying income by averaging your 1099 gross receipts, not your taxable income after deductions.
Credit scores start at 620 for most programs, though better rates kick in at 680. Expect 10-20% down depending on property type and your overall profile strength.
Only non-QM lenders offer true 1099 programs. Traditional banks require two years of tax returns showing averaged income, which kills your approval if you write off business expenses aggressively.
We access 15+ non-QM lenders who specialize in contractor income. Each has different calculation methods—some count 100% of 1099 income, others apply expense ratios by industry type.
Most 1099 borrowers should skip these loans if they have strong tax returns showing steady income. Conventional loans beat non-QM rates by 1-2% when your returns support approval.
Where 1099 loans shine: you're a high earner writing off $80K in business expenses, or you switched to contract work in the last 18 months. These scenarios kill conventional approvals but work perfectly for non-QM underwriting.
Bank statement loans offer an alternative if you mix 1099 and other income sources. They analyze 12-24 months of deposits rather than specific 1099 forms, giving you more flexibility in documentation.
Profit and loss loans work when you have an accountant-prepared P&L but your 1099s don't capture full income picture. Asset depletion makes sense if you're asset-rich but show minimal annual 1099 income.
South Pasadena's Craftsman homes and historic properties often need renovation. Some 1099 programs allow limited rehab financing, but most require purchase-only until you close and refinance.
Los Angeles County's property values push many purchases into jumbo territory. Non-QM jumbo 1099 loans exist but require 20-25% down and 700+ credit for competitive pricing.
No lender approves 1099 loans with less than 12 months documentation. You need at least one full year of consistent contract income to establish a qualifying pattern.
Most lenders count 100% of gross 1099 receipts, though some apply industry expense ratios. This approach benefits borrowers who write off significant business expenses on tax returns.
Lenders average your income over 12-24 months. Seasonal fluctuations are fine as long as the overall trend shows stability and you're not in a declining income pattern.
Yes, though expect 20-25% down and higher rates. Lenders view 1099 borrowers buying investment properties as higher risk than W-2 earners with the same income.
Rates run 1-2% higher than conventional programs. You're paying for flexibility in income documentation that traditional lenders won't accept.
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.