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1099 Loans in Marina
Marina draws plenty of self-employed professionals working in Monterey's hospitality and tech sectors. Traditional lenders often reject 1099 earners despite strong income because the documentation doesn't fit conventional underwriting.
Non-QM lenders focus on actual cash flow instead of tax returns. They look at your 1099 forms directly to verify income without penalizing you for legitimate write-offs that reduce taxable income.
Most lenders want 12-24 months of 1099 history in the same field. Credit scores typically start at 620, though some programs go lower with larger down payments.
Expect to put down 10-20% depending on your credit profile. Lenders calculate income by averaging your 1099 receipts, often without the aggressive tax return adjustments that kill conventional approvals.
Non-QM lenders each have different calculation methods for 1099 income. Some average the last 12 months, others use 24 months. A few will even consider growing income trends favorably.
Rates run 0.5-2% higher than conventional loans. That spread tightens considerably if your credit is above 700 and you put 20% down. Shop lenders aggressively because pricing varies widely in this space.
I see Marina contractors get stuck using bank statement loans when 1099 programs would give them better rates. If you have clean 1099 forms showing consistent income, use them instead of letting an underwriter dig through deposits.
The income calculation matters more than the rate. A lender who averages 24 months of rising income treats you better than one using a 12-month snapshot if you had a slow quarter recently.
Bank statement loans work when your 1099 income is irregular or you mix multiple income streams. If you have steady contractor income from one or two clients, stick with 1099 programs for cleaner approval.
Profit and loss loans require a CPA to prepare financials, adding cost and time. Asset depletion makes sense only if you're sitting on significant liquid assets but lack current income documentation.
Marina's proximity to Fort Ord creates opportunities for defense contractors and consultants earning 1099 income. Lenders familiar with government contract work understand income stability better than those who don't.
Seaside and Monterey have higher price points that might push you toward jumbo 1099 programs. Those require 20% down and 680+ credit in most cases but remain accessible for established contractors.
Yes, lenders combine income from different clients as long as it's in the same line of work. They want to see consistent work history, not necessarily the same payer.
Most 1099 programs require one or two years of returns to verify you filed. They just don't use the heavily deducted income shown there.
They typically average 12 or 24 months of 1099 receipts. Some apply a small expense factor, but nothing like the write-offs that hurt conventional approval.
Averaging smooths out seasonal dips. Lenders who use 24-month calculations handle seasonal work better than those using 12 months.
Expect 0.5-2% higher depending on credit and down payment. Strong borrowers with 20% down often see rates within 0.75% of conventional pricing.
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.