Question 1

Can I use just one year of 1099 income to qualify?

Accepted Answer

Some lenders allow one year, but two is much stronger. One-year programs often come with higher rates or tighter loan-to-value limits.

Question 2

Do I need to be fully self-employed to get a 1099 loan?

Accepted Answer

Yes — these programs are designed for borrowers whose primary income is 1099-based. Mixed W-2 and 1099 income may fit a different program better.

Question 3

Will my tax write-offs hurt my 1099 loan approval?

Accepted Answer

No. Most 1099 programs use gross income from your forms, not your taxable income. That's the core advantage over conventional loans.

Question 4

What down payment do I need in Monterey?

Accepted Answer

Most 1099 programs require 10-20% down. Higher loan amounts or lower credit scores typically push that number up.

Question 5

How do lenders handle seasonal contractor income in Monterey?

Accepted Answer

They average income across both years. A strong second year can offset a weaker first — consistency across the full period is what matters.

Question 6

Are 1099 loan rates higher than conventional rates?

Accepted Answer

Yes, typically. Non-QM programs carry a rate premium for the added flexibility. Rates vary by borrower profile and market conditions.

1099 Loans in Monterey, CA for Independent Contractors