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1099 Loans in Fairfax
Fairfax attracts creative professionals, consultants, and entrepreneurs who value the town's artistic character and Marin County lifestyle. Many residents work as independent contractors, making 1099 loans essential for homeownership in this community.
Traditional mortgage programs often reject self-employed borrowers due to tax write-offs that reduce taxable income. 1099 loans solve this problem by evaluating your actual earnings rather than just what appears on tax returns.
This loan type works particularly well for Fairfax professionals whose income is strong but inconsistent, or those who maximize business deductions while maintaining healthy cash flow.
Borrowers typically need at least 12-24 months of consistent 1099 income from the same industry or client base. Lenders review your 1099 forms to calculate average monthly earnings without penalizing legitimate business expenses.
Most programs require credit scores of 620 or higher, though some lenders accept lower scores with larger down payments. Down payment requirements usually start at 10-15% depending on the property type and your overall financial profile.
You'll provide 1099 statements, business license documentation, and bank statements showing adequate reserves. Strong reserves help offset the perceived risk of variable income streams.
Most conventional banks won't offer true 1099 loan programs, instead requiring full tax returns that may understate your actual earning capacity. Non-QM lenders specializing in alternative documentation provide better options for independent contractors.
Portfolio lenders and private institutions fund these loans, keeping them in-house rather than selling to government agencies. This flexibility allows customized underwriting that focuses on your actual business performance.
Working with a broker gives you access to multiple non-QM lenders simultaneously. Each lender has different requirements for documentation, income calculation methods, and pricing structures.
Organize your 1099 forms by year and client before starting the application process. Lenders calculate income by averaging the most recent 12-24 months, so having clear documentation speeds up approval significantly.
If you're transitioning from W-2 employment to 1099 work, wait until you have at least one full year of self-employment before applying. Some lenders require two years of history in the same field to demonstrate stability.
Consider timing your application after your strongest earning quarters. While lenders average your income, showing recent upward trends can help with rate negotiations and demonstrate business growth.
Bank statement loans offer another alternative for self-employed borrowers, using 12-24 months of business or personal bank deposits to calculate income. This works well if your 1099 income fluctuates significantly or you receive payments through multiple channels.
Profit and loss statement loans provide options for established businesses with clean bookkeeping. These programs may accept CPA-prepared financials instead of tax returns, though requirements are typically stricter.
Asset depletion loans work for borrowers with substantial savings or investment accounts but irregular income documentation. Rather than proving monthly earnings, you qualify based on dividing your total assets over the loan term.
Fairfax's close-knit community includes many creative professionals, consultants, and small business owners who benefit from 1099 loan programs. The town's affordable character relative to other Marin communities makes it accessible for self-employed buyers.
Property types range from historic homes near downtown to hillside properties with privacy and views. Lenders may have different requirements for properties in rural versus developed areas, affecting documentation needs.
Marin County's high property values mean many borrowers need jumbo loan amounts even for modest homes. Combining non-QM underwriting with jumbo financing requires lenders experienced in both specialties.
Lenders typically average your gross 1099 income over 12-24 months. Unlike tax return-based programs, they don't subtract business expenses, focusing on your actual earnings before deductions.
Yes, most lenders accept income from multiple sources as long as you show consistent work in the same industry. Diversified client bases can actually strengthen your application by demonstrating stability.
Rates vary by borrower profile and market conditions. These non-QM loans typically carry slightly higher rates than conventional financing, but competitive pricing is available for strong applicants.
Most programs require at least one year of self-employment history, with two years preferred. If you're new to 1099 work, consider waiting to build a track record or exploring other loan options.
Expect to provide 1099 statements for 12-24 months, business license, bank statements showing reserves, and standard mortgage documents like credit reports and property appraisals.
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.