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1099 Loans in Mill Valley
Mill Valley has a higher concentration of consultants, tech contractors, and creative professionals than most Bay Area towns. Traditional W-2 income verification doesn't work when you're billing clients directly.
Most Marin lenders still push conventional loans first. That wastes time for 1099 earners who need underwriting built around contract income, not pay stubs.
You need at least one year as an independent contractor. Two years is better but not always required if your contract history is strong.
Lenders verify income through 1099 forms from clients. Credit scores start at 620, though 680+ gets better rates. Expect 10-20% down depending on loan amount.
Most retail banks reject 1099 borrowers outright or ask for two years of tax returns that tank your qualifying income. Non-QM lenders underwrite directly from your 1099 statements.
Rates run 0.5-1.5% higher than conventional loans. That's the cost of flexible underwriting when your income doesn't fit Fannie Mae's boxes.
Half my Mill Valley tech contractors could qualify conventional if they wanted to wait another tax year. They choose 1099 loans to buy now while rates and inventory align.
The math works when appreciation outpaces the rate premium. In Marin's market, waiting 12 months to save 0.75% on rate can cost you $150K in home price increases.
Bank statement loans work if you have 12-24 months of business deposits but inconsistent 1099s. Profit and loss loans suit contractors with complex income streams across multiple clients.
1099 loans are cleaner when you have steady contracts and clear documentation. Less paperwork than bank statement programs, faster than P&L underwriting.
Mill Valley's market moves fast with limited inventory. Contract workers competing against W-2 tech employees need financing that closes in 21 days, not 45.
Many sellers here are self-employed themselves. They understand 1099 income and won't dismiss your offer because it's non-QM financing. Clean pre-approval matters more than loan type.
Most lenders want 12 months of consistent 1099 income. If you have multiple clients, provide all forms showing total annual earnings.
No, lenders only count documented 1099 income already received. Future contracts don't qualify until you've been paid and have the tax forms.
Not required, but helpful. Lenders verify deposits match your 1099 statements to confirm income consistency.
Underwriters average your income across 12-24 months. Seasonal fluctuations work fine if the annual total supports the loan amount.
Expect 3-4 weeks from application to clear-to-close. Faster than bank statement loans, similar timeline to conventional with good documentation.
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.