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Truckee draws a heavy concentration of self-employed workers. Ski instructors, contractors, consultants, and remote freelancers all call this area home.
Traditional lenders see 1099 income and hesitate. That's where a non-QM loan — one outside standard agency guidelines — fills the gap.
620–680+
Min Credit Score
1–2 Years of 1099s
Income Docs
10–20% Min
Down Payment
2 Years Preferred
Self-Employed History
Non-QM
Loan Type
1099 Loans in Truckee
Lenders typically want 1-2 years of 1099s. Some programs average both years. Others use only the most recent year if income is trending up.
Expect a minimum credit score around 620-680 depending on the lender. Reserves — cash left after closing — matter a lot with these programs.
Local decision guide
Use this guide to connect 1099 loans eligibility, lender expectations, and local market factors before comparing payment options in Truckee.
Truckee draws a heavy concentration of self-employed workers. Ski instructors, contractors, consultants, and remote freelancers all call this area home.
Traditional lenders see 1099 income and hesitate. That's where a non-QM loan — one outside standard agency guidelines — fills the gap.
Lenders typically want 1-2 years of 1099s. Some programs average both years. Others use only the most recent year if income is trending up.
Most big retail banks won't touch 1099-only borrowers. Their underwriting systems are built around W-2s and tax returns showing taxable income.
Wholesale non-QM lenders operate differently. They evaluate gross 1099 earnings — not what's left after deductions — which changes the math significantly.
The biggest mistake I see: freelancers write off everything and show near-zero taxable income. That kills a conventional loan fast.
A 1099 loan uses your actual earnings, not your net after deductions. That's the core difference — and for most self-employed borrowers in Truckee, it's everything.
Bank statement loans are the closest alternative. They use 12-24 months of deposits instead of 1099s — useful if your income flows through a business account.
If you hold investment property, a DSCR loan skips income verification entirely. It qualifies on rental income from the property, not your personal earnings.
Truckee real estate skews toward vacation homes, short-term rentals, and mountain cabins. Lenders flag second-home and investment designations — both affect rate and down payment.
Nevada County has no special conforming loan exceptions. If you need a large loan for a Truckee mountain property, expect jumbo non-QM pricing on top of the 1099 structure.
Some lenders accept one year, especially if income is rising. Most prefer two years for a cleaner approval.
No — that's the point. These programs use gross 1099 income, not your taxable income after deductions.
Yes. Non-QM rates run above conventional pricing. Rates vary by borrower profile and market conditions.
Yes, but second-home loans carry stricter reserve requirements. Expect a higher down payment than a primary residence.
Lenders can blend both income sources. A conventional loan may work if W-2 income is strong enough to qualify alone.
Most 1099 non-QM programs start at 10-20% down. Higher down payments improve your rate and approval odds.