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1099 Loans in Monterey
Monterey's economy runs on hospitality, tech consultants, and creative professionals. Many earn 1099 income that traditional lenders struggle to underwrite.
1099 loans skip the W-2 requirement entirely. Lenders review your gross 1099 income without the write-offs that tank your tax returns.
Most Monterey self-employed borrowers show strong revenue but minimal taxable income. This loan program evaluates what you actually earn, not what you report to the IRS.
You need 12-24 months of 1099 income history. Lenders average your gross receipts across that period to establish qualifying income.
Credit scores start at 620, but 680+ unlocks better rates. You'll put down 10-20% depending on property type and loan size.
Most programs require proof of ongoing client relationships. Lenders want to see you're not between gigs—you have consistent 1099 work lined up.
Only non-QM lenders offer true 1099 programs. Your bank won't touch this—they're locked into Fannie Mae guidelines that demand tax returns.
Rates run 1-2% higher than conventional loans. That gap closes fast if you're comparing to what you'd qualify for using your actual tax returns.
About 30 lenders in our network underwrite 1099 income. Each calculates qualifying income differently—some average 12 months, others need 24.
Most Monterey consultants and contractors run expenses through their business. That kills your debt-to-income ratio on conventional loans even when you clear six figures.
1099 loans solve this by ignoring Schedule C deductions. If your 1099s show $180K gross, lenders use that number—not the $45K net on your tax return.
I send tourism and hospitality workers to bank statement programs instead. If you get cash tips or seasonal 1099 work, 12 months of deposits tells a cleaner story.
Bank statement loans and 1099 loans serve similar borrowers. The difference: bank statements work when your deposits don't match your 1099s exactly.
Profit and loss statement loans need a CPA to prepare financials. 1099 programs skip that requirement—you hand over your 1099 forms and you're done.
Asset depletion works if you have significant liquid assets but inconsistent 1099 income. Lenders divide your assets by 360 months to create qualifying income.
Monterey's condo market runs tight. If you're buying near Cannery Row or downtown, expect stricter loan-to-value limits on 1099 programs.
Tech contractors working remotely qualify easily. Hospitality consultants and event planners face more scrutiny—lenders want proof your income survived COVID disruptions.
Coastal properties command premium prices. You'll need strong 1099 income history to qualify for Monterey's price points without maxing your debt ratios.
Lenders average your gross 1099 income over 12-24 months. Your debt-to-income ratio can't exceed 43-50%, depending on the lender's overlays.
Yes. Lenders total all 1099 income sources. You'll need to provide each 1099 form and prove the work continues into the current year.
Most lenders require 12-24 months of consistent 1099 income. Gaps longer than 90 days trigger additional documentation requirements.
They request current contracts, recent invoices, or letters from clients. Lenders want proof you didn't just finish a one-time project.
Most programs start at 620. Rates improve significantly at 680 and 720, with the best pricing reserved for 740+ scores.
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.