Question 1

Can I use 1099 income from multiple clients for qualification?

Accepted Answer

Yes, lenders combine 1099 income from multiple sources if they're in related industries. Diversified income across unrelated fields requires stronger reserves and documentation.

Question 2

How do lenders calculate my qualifying income from 1099 forms?

Accepted Answer

Most lenders average your gross 1099 income over 12-24 months, then apply a 25% expense factor. Some use your actual business expenses if documented, which can increase qualification.

Question 3

Do I need to provide tax returns for a 1099 loan?

Accepted Answer

Most programs require one year of personal returns to verify you filed and paid taxes. Business returns usually aren't needed since lenders use 1099 forms directly.

Question 4

What if my 1099 income increased significantly this year?

Accepted Answer

Lenders use averaged income, so recent increases help less than sustained earnings. A 12-month average gets you approved faster than waiting for 24 months of higher income.

Question 5

Can I refinance an existing mortgage with a 1099 loan?

Accepted Answer

Yes, 1099 refinances work the same as purchases. Many Belvedere contractors refinance out of high-rate loans once they have 12 months of consistent 1099 documentation.

1099 Loans for Belvedere's Independent Contractors and Self-Employed Professionals