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1099 Loans in Whittier
Whittier has a strong population of self-employed professionals who get turned down by traditional lenders. Your 1099 income is real money, but most banks won't see it that way.
These loans solve the W-2 documentation trap that kills deals for independent contractors. You qualify based on income you actually receive, not what shows up after business deductions.
Most lenders want 12-24 months of consistent 1099 income from the same line of work. Credit scores typically start at 620, though 660+ gets better pricing.
Down payment minimums run 10-15% for primary homes in Whittier. Investment properties need 20-25% down, and you'll face higher rates than conventional loans.
Banks won't touch 1099 income that doesn't appear on tax returns. You need specialty non-QM lenders who underwrite to gross receipts instead of net taxable income.
The gap between lenders on these programs is massive. Some cap at 50% debt-to-income, others go to 55%. Rate spreads between best and worst can hit 1.5 points.
The biggest mistake 1099 borrowers make is applying directly with one lender. These programs aren't standardized, so terms swing wildly based on who underwrites your file.
Whittier buyers with multiple income streams qualify easier than single-source 1099 earners. Lenders view diversified income as lower risk, which translates to better pricing.
Bank statement loans use deposits to prove income, while 1099 loans use your gross receipts. If you have business expenses that eat into your deposits, 1099 programs usually qualify you for more.
Profit and loss loans require a CPA letter and look more like traditional underwriting. 1099 loans are cleaner: lenders just calculate your gross income and move forward.
Whittier's housing stock includes many properties under conforming loan limits, but 1099 loans still make sense for borrowers who can't document income traditionally. The program works at any price point.
Los Angeles County appraisals move fast, but 1099 loan processing takes longer than conventional. Budget 30-45 days for underwriting, especially if you're self-employed in multiple businesses.
Yes, and it actually helps. Lenders prefer diversified 1099 income over single-client relationships because it reduces income disruption risk.
Most programs don't analyze your returns. Lenders use 1099 forms to calculate gross income without deducting business expenses.
Expect 1.5-2.5% above conventional rates. The gap shrinks with larger down payments and higher credit scores.
Lenders average your income over 12-24 months. Seasonal fluctuations are fine as long as the pattern shows consistency.
Absolutely. Cash-out and rate-term refinances both work, though cash-out deals require more equity and carry higher rates.
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.