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1099 Loans in Corte Madera
Corte Madera attracts tech consultants, creative professionals, and independent business owners. Traditional lenders reject most 1099 earners because underwriting software only reads W-2s.
1099 loans use your gross income from contractor payments to qualify. No tax returns, no adjusted gross income games, no explaining business write-offs to someone who doesn't understand them.
Marin County has one of the highest concentrations of self-employed professionals in the Bay Area. Most earn well above conforming loan limits but struggle with conventional underwriting.
You need 12-24 months of 1099s from the same client or industry. Lenders average your gross contractor income across that period to calculate qualifying income.
Credit scores start at 620, but most approvals happen at 660+. Expect 15-25% down depending on loan amount and credit profile.
Your CPA letter confirming self-employment helps but isn't required. What matters: consistent 1099 income that covers the mortgage payment with room to spare.
Most retail banks don't offer 1099 loans. Their software can't process income documentation that isn't a W-2 or two years of tax returns.
Non-QM lenders built underwriting systems specifically for self-employed borrowers. They verify 1099s directly with issuing companies and use gross income for qualification.
Rates run 0.75-2% higher than conventional loans. You're paying for underwriting flexibility and the lender's portfolio risk, not your creditworthiness.
Brokers access 15-20 non-QM lenders with different 1099 loan structures. Some cap at $2M, others go to $4M. Some require two years, others approve with 12 months.
Most 1099 earners in Corte Madera gross $300K+ but show $150K on tax returns after business deductions. Conventional underwriting uses the $150K. 1099 loans use the $300K.
If you have multiple clients, lenders want to see diversification. One 1099 for 100% of income raises continuity flags. Three clients covering 80% of income works better.
Prepayment penalties are standard on 1099 loans. Expect 3 years soft prepay or 2 years declining penalty. Budget for this if you plan to refi when rates drop.
Bank statement loans work if you deposit everything into one business account. 1099 loans work better if clients pay you directly and you don't run deposits through a business checking account.
Profit & loss loans require CPA-prepared financials and usually two years of self-employment. 1099 loans skip the P&L and can work with 12 months of contractor income.
Asset depletion makes sense if you have $2M+ in liquid assets but inconsistent 1099 income. Otherwise, 1099 loans qualify you on higher income without depleting investment accounts.
Corte Madera sits between San Francisco's tech economy and Marin's professional services corridor. Most 1099 borrowers here are consultants, designers, or specialized contractors earning $250K-$600K gross.
Marin County properties often exceed conforming limits. Your 1099 loan likely needs jumbo non-QM underwriting, which requires stronger reserves and lower debt ratios than standard programs.
Local appraisals come in reliably because inventory stays tight and sales comps cluster in narrow price bands. Your biggest underwriting risk is income documentation, not property value.
Yes. Lenders prefer seeing 2-3 clients to reduce concentration risk. They'll average gross income across all 1099s from the past 12-24 months.
No. 1099 loans qualify you on gross contractor income without analyzing tax returns or adjusted gross income.
Lenders average your total 1099 income over 12-24 months. Seasonal variation is fine as long as the average supports the loan amount.
Expect 0.75-2% higher rates. You're paying for underwriting flexibility that conventional lenders don't offer. Rates vary by borrower profile and market conditions.
Yes, but watch for prepayment penalties in years 1-3. If your tax returns eventually show strong income, you can refi to conventional.
Most 1099 loans require 15-25% down. Higher loan amounts and lower credit scores push toward 25%.
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.