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1099 Loans in Merced
Merced has a growing gig economy and agricultural contractor base that traditional lenders routinely reject. Most W-2-focused underwriters won't touch 1099 income even when it's consistent and strong.
We work with non-QM lenders who underwrite on actual cash flow, not tax returns designed to minimize liability. That means fewer hurdles for independent contractors, consultants, and freelancers buying in Merced County.
You need 12-24 months of 1099 income history and a credit score around 620 minimum. Lenders verify income through your 1099 forms and sometimes bank statements to confirm deposits match.
Down payments start at 10-15% depending on credit and income stability. Higher scores and larger down payments unlock better rates and terms across our lender network.
Traditional banks in Merced won't touch this. You need non-QM lenders who specialize in self-employed borrowers and understand 1099 income structures.
We access 200+ wholesale lenders including those focused exclusively on alternative documentation. Rates run 1-2% higher than conventional loans but approval odds jump dramatically for contractors and freelancers.
Most 1099 borrowers in Merced qualify for more house than they think. Lenders look at gross 1099 income before business expenses, not the reduced AGI you show the IRS.
I match borrowers to lenders based on income consistency and documentation quality. Some lenders want just 1099s, others cross-check bank statements. Knowing which lender fits your situation saves weeks of back-and-forth.
Bank statement loans work if you mix 1099 and cash income or have incomplete 1099 documentation. Those programs calculate income from deposits but cost slightly more.
P&L loans suit borrowers with strong CPA-prepared financials but inconsistent 1099 patterns. Asset depletion works if you have substantial liquid assets but irregular 1099 income flow.
Merced's economy includes agricultural contractors, UC Merced consultants, and Central Valley logistics operators—all heavy 1099 users. Local appraisers understand the market but values can swing in rural pockets.
Properties near UC Merced campus and downtown move faster and appraise more reliably. Rural Merced County properties sometimes face appraisal delays that extend closing timelines for non-QM loans.
Some lenders approve with 12 months if income is strong and credit exceeds 680. Most prefer 24 months for rate and down payment flexibility.
No. Lenders verify income directly from your 1099 forms and may request bank statements to confirm deposits. Tax returns aren't part of the underwriting.
Lenders average your income over the documented period. Seasonal fluctuation is fine as long as the annual total supports the loan amount.
Expect 1-2% above conventional rates. Rates vary by borrower profile and market conditions, with better credit and larger down payments earning lower rates.
Yes. Many lenders in our network approve 1099 loans for both primary residence and investment properties in Merced County.
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.