Question 1

Do I need two full years of 1099 income?

Accepted Answer

Most lenders want two years. Some will work with one year if your income is strong and consistent.

Question 2

Can I use 1099s from multiple clients?

Accepted Answer

Yes. Lenders total all 1099 income from all sources. Diversified clients can actually strengthen your file.

Question 3

What down payment do I need in Atwater?

Accepted Answer

Expect 10-20% down on most 1099 loan programs. Lower credit scores typically require more down.

Question 4

How do rates compare to conventional loans?

Accepted Answer

Non-QM rates run higher than conventional. The flexibility in underwriting comes at a cost. Rates vary by borrower profile and market conditions.

Question 5

What if my income dropped last year?

Accepted Answer

Declining income raises flags. Lenders may average two years or use the lower year. Steady or rising income is ideal.

Question 6

Can I refinance later into a conventional loan?

Accepted Answer

Yes. Many borrowers use a 1099 loan to buy, then refinance once they qualify conventionally. It's a solid two-step strategy.

1099 Loans in Atwater, CA for Independent Contractors