Question 1

Can I qualify with just one year of 1099 income?

Accepted Answer

No. All 1099 loan programs require two years of self-employment history in the same field. Lenders average both years to calculate qualifying income.

Question 2

Do my business write-offs reduce how much I can borrow?

Accepted Answer

Yes. Lenders use your net income after deductions, not gross 1099 receipts. Every dollar you write off lowers your qualifying power.

Question 3

How do rates compare to conventional loans?

Accepted Answer

Expect 0.75% to 1.5% above conventional rates. Your credit score and down payment size determine where you land in that range.

Question 4

Can I use 1099 income from multiple clients?

Accepted Answer

Yes, as long as all the work falls within the same industry or trade. Lenders combine all 1099 sources when calculating total income.

Question 5

What if my income declined between the two years?

Accepted Answer

Lenders will question declining income and may use the lower year only. Be ready to explain seasonal variations or document new contracts.

1099 Loans in Torrance: Financing Built for Independent Contractors