Question 1

Can I use one year of 1099 income to qualify?

Accepted Answer

Some lenders accept one year, but two is the standard. One year typically means fewer lender options and higher rates.

Question 2

Do I need to be incorporated to get a 1099 loan?

Accepted Answer

No. Sole proprietors qualify. You just need documented 1099 income from clients or platforms.

Question 3

How is my income calculated on a 1099 loan?

Accepted Answer

Lenders typically average your 1099 totals over 12-24 months. Some subtract business expenses — ask which method your lender uses.

Question 4

What if my 1099 income dropped last year?

Accepted Answer

Lenders may use only the lower year's income. Declining trends can limit your options or raise your rate.

Question 5

Are 1099 loan rates higher than conventional rates?

Accepted Answer

Yes, non-QM products carry a rate premium. Rates vary by borrower profile and market conditions — stronger credit narrows the gap.

Question 6

Can I buy a high-value Fairfax home with a 1099 loan?

Accepted Answer

Yes. Jumbo 1099 loans are available through wholesale lenders. Expect stricter reserve requirements at higher loan amounts.

1099 Loans in Fairfax, CA for Independent Earners