Question 1

Can I qualify with only six months of 1099 income?

Accepted Answer

Most lenders require 12-24 months to establish income consistency. A few programs accept six months if you transitioned from W-2 to 1099 in the same field and show strong cash reserves.

Question 2

Do lenders count all my 1099 income or just part of it?

Accepted Answer

It depends on the lender's calculation method. Some use gross 1099 amounts, others subtract business expenses you'd normally deduct on Schedule C. We shop both methods to maximize your qualifying income.

Question 3

What if I have multiple 1099 clients throughout the year?

Accepted Answer

Multiple clients actually strengthen your application by showing diversified income. Lenders worry more about reliance on one client than having several consistent payers across the year.

Question 4

Will tax write-offs hurt my ability to qualify?

Accepted Answer

Not with 1099 loans. Lenders use your gross 1099 income or apply minimal expense adjustments, unlike conforming loans that use your tax return's low AGI after all deductions.

Question 5

How long does underwriting take for 1099 loans?

Accepted Answer

Initial review takes 3-5 days once we submit complete 1099 documentation. Full underwriting to clear-to-close runs 20-30 days, faster than bank statement loans but slower than conventional.

1099 Loans in Salinas: Financing for Independent Contractors and Freelancers