Question 1

How much 1099 income do I need to qualify in Ukiah?

Accepted Answer

Depends on the home price and your debts. Lenders typically want your housing payment below 43% of gross income after applying industry expense ratios.

Question 2

Can I use 1099 income from multiple clients?

Accepted Answer

Yes, as long as all income is in the same field. Lenders add up all your 1099 forms and calculate one average income amount.

Question 3

What if I only have one year of 1099 income?

Accepted Answer

Some lenders allow it if you worked W-2 in the same industry before going 1099. Otherwise you need two years of self-employment history.

Question 4

Do 1099 loans work for investment properties?

Accepted Answer

Yes, though you'll need 20-25% down and slightly higher rates. Investor 1099 loans are common for contractors buying rentals in Mendocino County.

Question 5

How do lenders verify 1099 income?

Accepted Answer

They collect your 1099 forms directly from you and may verify them with issuing companies. Some lenders also request bank statements showing deposits.

1099 Loans in Ukiah: Financing for Self-Employed Borrowers