Question 1

Do I need two years of 1099 income to qualify?

Accepted Answer

Most lenders require 2 years of self-employment history. Some accept 1 year with strong compensating factors like high credit or large reserves.

Question 2

Can I use both W-2 and 1099 income?

Accepted Answer

Yes. Lenders can combine both income types. Your W-2 history actually strengthens the file if you've recently gone independent.

Question 3

Do my tax returns matter on a 1099 loan?

Accepted Answer

Some lenders still pull them for verification. But qualifying income comes from your 1099s directly, not your net taxable income.

Question 4

Are 1099 loan rates higher than conventional rates?

Accepted Answer

Yes, typically. Non-QM products carry more lender risk, so rates run higher. Rates vary by borrower profile and market conditions.

Question 5

What if my 1099 income varies year to year?

Accepted Answer

Lenders usually average 2 years of 1099 income. A significant drop in year two can reduce your qualifying number.

Question 6

Is a 1099 loan harder to close in Greenfield than a conventional loan?

Accepted Answer

The process takes more documentation upfront. But with the right lender, timelines are comparable to standard purchase loans.

1099 Loans for Greenfield's Independent Earners