Question 1

Do I need two years of 1099 income to qualify?

Accepted Answer

Most lenders want two years. Some non-QM lenders accept one year if your income is strong and consistent.

Question 2

Will my tax deductions hurt my qualification?

Accepted Answer

Not with a 1099 loan. Lenders use gross 1099 income, not your taxable income after write-offs.

Question 3

Can I use 1099s from multiple clients?

Accepted Answer

Yes. Lenders add up all 1099 income from the prior one to two years. Multiple sources are fine.

Question 4

Is a 1099 loan more expensive than a conventional loan?

Accepted Answer

Yes, typically. Non-QM loans carry higher rates due to added risk. Rates vary by borrower profile and market conditions.

Question 5

What if my 1099 income dropped last year?

Accepted Answer

Lenders average your income over two years. A significant drop will raise flags and may reduce your qualifying amount.

1099 Loans in American Canyon, CA