Question 1

Can I use just one year of 1099s to qualify?

Accepted Answer

Some non-QM lenders allow one year. Most prefer two. A stronger credit profile or larger down payment helps make the case.

Question 2

Do my tax deductions hurt my qualifying income?

Accepted Answer

Yes, if the lender uses net income from your tax return. Some programs use gross 1099 income instead — that's the key question to ask.

Question 3

What credit score do I need for a 1099 loan in Point Arena?

Accepted Answer

Most non-QM lenders start at 620. Better rates kick in around 680 and above. Rates vary by borrower profile and market conditions.

Question 4

How much down payment is required?

Accepted Answer

Expect 10-20% minimum for most 1099 loan programs. Lower down payments are rare and typically require excellent credit.

Question 5

Will lenders finance rural Mendocino County properties?

Accepted Answer

Non-QM lenders are generally more flexible than conventional ones on rural properties. Appraisal quality matters more than location alone.

Question 6

Is a 1099 loan the same as a bank statement loan?

Accepted Answer

No. A 1099 loan qualifies you on your contractor income forms. A bank statement loan uses deposit history instead. Both are non-QM options.

1099 Loans for Point Arena's Self-Employed Borrowers