Question 1

Do I need two years of 1099 income to qualify?

Accepted Answer

Most lenders want two years. Some accept one year with strong compensating factors like good credit or reserves.

Question 2

Can I use 1099 income from multiple clients?

Accepted Answer

Yes. Lenders add up all 1099 sources. Consistent clients across multiple years make your file stronger.

Question 3

Will my tax deductions hurt my qualifying income?

Accepted Answer

On a 1099 loan, lenders use your gross 1099 income — not your taxable income after deductions. That's the advantage.

Question 4

What credit score do I need for a 1099 loan in Costa Mesa?

Accepted Answer

Most lenders require 620 minimum. Scores above 700 get better rates. Rates vary by borrower profile and market conditions.

Question 5

How is a 1099 loan different from a bank statement loan?

Accepted Answer

A 1099 loan uses your contractor forms to verify income. A bank statement loan averages 12-24 months of deposits instead.

Question 6

Is a 1099 loan available for investment properties in Costa Mesa?

Accepted Answer

Yes. Several non-QM lenders allow 1099 income on investment property purchases. Down payment requirements are typically higher.

1099 Loans in Costa Mesa for Independent Earners