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Willits sits in the heart of Mendocino County, where self-employment is common. Contractors, tradespeople, and freelancers make up a big share of local earners.
Standard loans penalize 1099 workers unfairly. A non-QM 1099 loan uses your actual income docs — not a tax return that understates what you make.
620+
Min Credit Score
1-2 Yrs 1099s
Income Docs
10-20% Typical
Down Payment
2+ Years Preferred
Self-Employed History
1099 Loans in Willits
Lenders typically want 1-2 years of 1099 forms to verify income. They average your earnings across that period to set your qualifying income.
Most programs require a 620 minimum credit score. Stronger credit unlocks better rates — rates vary by borrower profile and market conditions.
Local decision guide
Use this guide to connect 1099 loans eligibility, lender expectations, and local market factors before comparing payment options in Willits.
Willits sits in the heart of Mendocino County, where self-employment is common. Contractors, tradespeople, and freelancers make up a big share of local earners.
Standard loans penalize 1099 workers unfairly. A non-QM 1099 loan uses your actual income docs — not a tax return that understates what you make.
Lenders typically want 1-2 years of 1099 forms to verify income. They average your earnings across that period to set your qualifying income.
Big retail banks rarely offer 1099 loan programs. This is a wholesale product — you need a broker with access to non-QM lenders to find it.
SRK CAPITAL shops 200+ wholesale lenders. That matters here because non-QM pricing varies widely across lenders for the same borrower profile.
The biggest mistake 1099 borrowers make: applying at a bank first. Banks decline them, and that hard inquiry hurts their score before they find the right lender.
Your write-offs work against you on a tax return. With a 1099 loan, lenders use gross 1099 income — so your deductions don't crush your qualifying number.
Bank statement loans are the closest alternative. They use 12-24 months of deposits instead of 1099s — better fit if your income mixes contract and business revenue.
Profit & loss loans work when 1099s don't tell the full story. Asset depletion loans are another option if you have reserves but irregular income.
Mendocino County has a strong independent workforce. Agriculture, construction, and creative trades all produce 1099 earners who need non-QM options.
Willits is a rural market. Some lenders add overlays for rural properties — we filter for lenders who actively fund deals in Mendocino County.
Some lenders allow it with strong credit and reserves. Two years is standard and gives you access to more programs and better pricing.
Not always, but some lenders require proof of self-employment. A CPA letter or active contracts can serve as supporting documentation.
Not with a 1099 loan. Lenders use your gross 1099 income, so deductions on your tax return don't reduce what you qualify for.
Yes, but lender overlays apply in rural areas. We specifically filter for non-QM lenders who fund Mendocino County properties.
A 1099 loan uses your contractor income forms directly. Bank statement loans average your monthly deposits — useful when income hits a business account.