Question 1

Do I need two years of 1099 income to qualify?

Accepted Answer

Most lenders want two years. Some will approve with 12 months if your income is consistent and your credit profile is strong.

Question 2

Will my tax write-offs hurt my qualification?

Accepted Answer

Not with a 1099 loan. Lenders use your gross contract income — deductions on your return don't reduce what you can borrow.

Question 3

How much down payment do I need in Sand City?

Accepted Answer

Plan for at least 10%. Putting down 20% gives you access to better rates and more lender options on non-QM programs.

Question 4

Are 1099 loan rates higher than conventional rates?

Accepted Answer

Yes, non-QM rates run higher than conventional. The tradeoff is qualifying on income that conventional lenders won't accept. Rates vary by borrower profile and market conditions.

Question 5

Can I use a 1099 loan to buy in Monterey County?

Accepted Answer

Yes. There's no geographic restriction. The loan is based on your income type, not where the property is located.

Question 6

What if I have multiple clients and income sources?

Accepted Answer

Multiple 1099s from different clients are fine. A Bank Statement loan might also work well — we can run both scenarios and compare.

1099 Loans in Sand City for Independent Contractors