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1099 Loans in Sausalito
Sausalito's housing market attracts tech consultants, creative professionals, and entrepreneurs who earn 1099 income. Traditional mortgage underwriting kills most self-employed applications in this price range.
1099 loans skip the W-2 verification trap. Lenders qualify you on gross receipts from your 1099 forms, not tax returns that show every write-off. This matters in Marin County where median prices demand serious income documentation.
Most Sausalito buyers work in San Francisco but live across the Golden Gate for the lifestyle. If you're self-employed and showing lower taxable income through deductions, this loan type keeps you competitive.
You need 12-24 months of consistent 1099 income from the same line of work. Credit scores start at 660, though 700+ gets better rates. Most lenders want 15-20% down in Sausalito's price tier.
Your 1099 forms prove income without dissecting Schedule C deductions. If you're writing off home office, equipment, or travel, those expenses don't reduce your qualifying income the way they do with conventional loans.
Lenders average your 1099 gross receipts across two years. One slow year won't tank your application if the trend shows stability. Gaps between 1099 gigs kill deals faster than lower annual totals.
About 30 non-QM lenders in our network offer 1099 programs. Pricing varies 50-75 basis points based on down payment and credit profile. The lender who quotes lowest isn't always cheapest after you factor prepayment penalties.
Some lenders blend 1099 income with W-2 if you have both. Others require pure self-employment. This distinction matters for tech workers doing contract gigs alongside equity compensation.
Rate locks run 30-45 days standard. Sausalito purchases move fast, so confirm your lender can close in 21 days if you're competing against cash offers or conventional buyers.
I see two 1099 borrower types in Sausalito: tech consultants pulling $300K+ who write off everything, and creative professionals with lumpy income. The first group qualifies easily. The second needs bank statement loans instead.
Your CPA's tax strategy directly impacts loan options. Aggressive deductions save taxes but cost you borrowing power on conventional loans. 1099 programs solve this, but only if your gross receipts support the payment.
Never apply for a 1099 loan during your first year of self-employment. Lenders need history. If you left W-2 work less than 12 months ago, wait or use bank statement programs that accept shorter timelines.
Bank statement loans run 25-50 basis points higher than 1099 loans but accept 12 months of deposits instead of two years of forms. Choose bank statements if you're newer to self-employment or have multiple income streams.
Profit and loss statement programs work for borrowers who can't produce 1099s, like cash-basis contractors. Those loans cost another 25 basis points and require CPA preparation. Stick with 1099 loans if you have the forms.
Conventional loans beat 1099 pricing by 75-100 basis points if you qualify. Run both scenarios. Some self-employed borrowers show enough net income on tax returns to go conventional despite write-offs.
Sausalito's houseboat community and hillside properties attract self-employed creatives. Some unique properties require portfolio lenders who combine 1099 qualification with non-warrantable property guidelines.
Marin County has higher property tax rates than surrounding areas. Your 1099 loan qualification includes those taxes in debt-to-income calculations. Budget conservatively—most borrowers max out around 50% DTI.
Proximity to San Francisco means many 1099 borrowers commute or work remote. Lenders don't care where your clients are located, only that your 1099 income sources remain stable and documentable.
Yes, lenders total all 1099 income as long as it's in the same profession. Diversified client base often strengthens your application by showing stability.
Lenders average the two most recent years. A decline triggers extra scrutiny and requires a written explanation, but doesn't automatically disqualify you.
Most lenders want returns to verify the 1099 forms match what you filed. They use gross 1099 amounts for qualification, not your net taxable income.
Rates vary by borrower profile and market conditions. Expect 75-125 basis points above conventional, offset by qualifying on higher income through gross receipts.
Yes, though down payment requirements increase to 20-25% minimum. Some lenders restrict 1099 programs to primary residences only, so confirm upfront.
740+ gets tier-one pricing. Between 660-739, expect rate adjustments of 25-50 basis points per tier depending on down payment size.
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.