Loading
1099 Loans in Madera
Madera's ag economy runs on independent contractors. Harvest crews, farm equipment operators, truckers — most file 1099s, not W-2s.
Traditional lenders reject these borrowers because tax write-offs tank their qualifying income. 1099 loan programs underwrite on gross revenue instead.
This matters in Madera County where self-employed workers make up a large share of the workforce. A 1099 loan uses your actual earnings, not tax-adjusted income.
You need 12-24 months of 1099s showing consistent income. Lenders total your annual gross receipts and divide by 12 to calculate qualifying income.
Credit floor sits at 620 for most programs. Down payment starts at 10% for purchases, though 15-20% gets better rates.
No tax returns, no profit and loss statements. Just signed 1099-MISC or 1099-NEC forms from your clients proving income history.
Most Madera credit unions won't touch 1099 income. They stick to W-2 wage earners with paystubs and tax returns.
We access specialty non-QM lenders who built programs specifically for contractors. These lenders price risk on income stability, not documentation type.
Rates run 1-2% above conventional loans because the underwriting is asset-based, not employment-verified. But approval odds are 10x higher for self-employed borrowers.
Biggest mistake: trying conventional first. You'll waste 3 weeks, tank your credit with inquiries, then end up at a non-QM lender anyway.
Second mistake: mixing 1099 and W-2 income on the same application. Pick one documentation path and stick with it. Lenders hate hybrid income stories.
If your 1099 income jumped 40% last year, expect pushback. Lenders want stable or declining revenue trends, not volatility that suggests seasonality.
Bank statement loans pull from deposits, which works if you run everything through one checking account. 1099 loans work better if you have multiple clients and clean paperwork.
P&L loans require a CPA signature and full financial statements. 1099 programs skip all that — just provide signed 1099 forms from payers.
Asset depletion makes sense if you're retired with investment accounts. But if you're actively working as a contractor, 1099 documentation is simpler and cheaper.
Madera lenders see lots of farm labor contractors who file 1099s. But most local banks still require two years of tax returns showing consistent adjusted income.
Property types matter here. If you're buying in unincorporated Madera County on a well and septic, expect tighter guidelines and higher rates.
Seasonal income patterns hurt you. If 80% of your 1099 revenue came in Q3 harvest season, lenders will average it out but question sustainability.
Yes. Lenders total all your 1099-MISC and 1099-NEC forms to calculate qualifying income. More payers actually helps show income diversity.
Most programs require 12 months minimum. Some lenders will go down to 9 months with 25% down and strong credit, but it's rare.
No. They verify directly with the companies that issued your 1099s. Some lenders require a 4506-C form but won't pull tax transcripts.
Yes, but expect 20-25% down minimum. Investment properties always require larger down payments on non-QM programs.
Lenders will use the lower year to qualify you. A 20% income drop kills most deals unless you compensate with a larger down payment.
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.