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Merced has a growing base of self-employed workers, contractors, and gig earners. Standard W-2 loans shut most of them out.
A 1099 loan uses your contractor income to qualify — no tax returns required. It's built for how you actually get paid.
620+
Min Credit Score
1-2 Years of 1099s
Income Docs
10-20% Typical
Down Payment
2 Years Preferred
Self-Employment History
Most lenders want 1-2 years of 1099s showing consistent income. Gaps or big swings in earnings will raise flags.
Credit requirements are typically 620 or higher. Down payments usually start at 10-20%, depending on your income history.
Your local bank almost certainly won't offer this. It's a non-QM product — only specialty lenders and wholesale channels carry it.
We work with 200+ wholesale lenders, including several strong on 1099 programs. Rate and terms vary widely by lender. Rates vary by borrower profile and market conditions.
The biggest mistake 1099 borrowers make: writing off too much income on taxes. Lower taxable income kills your qualifying power.
We look at your gross 1099 income, not what's left after deductions. That changes the math significantly for most contractors.
Bank Statement Loans are the closest alternative. They use 12-24 months of deposits instead of 1099s — better if you run income through a business account.
Profit & Loss Statement Loans work well for contractors with a CPA. If your income is straightforward, the 1099 route is usually faster and cleaner.
Merced's economy includes agriculture, healthcare, and UC Merced — all sectors with significant contractor and freelance work.
Construction and trade contractors in Merced County are especially strong candidates for this loan type. If you're pulling 1099s from multiple clients, that's fine — lenders average it.
Most lenders want two years. Some accept one year with strong income and good credit.
Yes. Lenders average income across all 1099 sources. Consistency matters more than the number of clients.
They can. High deductions lower your taxable income. Some lenders use gross 1099 income instead to offset this.
Most programs start at 620. Better scores above 700 get you lower rates and better terms.
No. You still document income — just with 1099s instead of tax returns or W-2s.
Loan amounts depend on your income and debt load. Non-QM lenders often go up to $3M or more.
1099 Loans in Merced