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Mission Viejo has a strong population of self-employed professionals. Consultants, contractors, and freelancers are common here — and most can't qualify with a W-2.
1099 loans are built for exactly this borrower. Your tax return doesn't tell the whole story. Your 1099s do.
620
Min Credit Score
1–2 Years of 1099s
Income Docs
10–20%
Down Payment
2 Years Typical
Self-Employment History
Non-QM
Loan Type
1099 Loans in Mission Viejo
Lenders use your 1099 forms — typically two years — to calculate qualifying income. Some programs average two years. Others use just the most recent year if income grew.
Credit requirements vary by lender. Most 1099 programs want at least a 620 score. Stronger credit gets you better terms. Rates vary by borrower profile and market conditions.
Local decision guide
Use this guide to connect 1099 loans eligibility, lender expectations, and local market factors before comparing payment options in Mission Viejo.
Mission Viejo has a strong population of self-employed professionals. Consultants, contractors, and freelancers are common here — and most can't qualify with a W-2.
1099 loans are built for exactly this borrower. Your tax return doesn't tell the whole story. Your 1099s do.
Lenders use your 1099 forms — typically two years — to calculate qualifying income. Some programs average two years. Others use just the most recent year if income grew.
Big retail banks rarely offer 1099 loans. This is a wholesale and non-QM lender product. Non-QM means the loan doesn't fit standard Fannie Mae guidelines — but it's still a legitimate mortgage.
At SRK CAPITAL, we work with 200+ wholesale lenders. Several specialize in self-employed borrowers. We match your income structure to the right program.
The biggest mistake 1099 borrowers make: assuming their tax return income is what lenders use. It's not always. Many 1099 programs use gross 1099 income before deductions.
That's a major difference. A contractor writing off $60K in expenses might look broke on paper — but qualifies fine on a 1099 program. Know which document the lender is pulling from.
Bank statement loans are the closest alternative. They use 12 or 24 months of deposits instead of 1099 forms. Better fit if your income flows through a business account.
Profit and loss statement loans work if you have a CPA-prepared P&L. Asset depletion loans are worth exploring if you have significant savings and lighter income. Each has a different sweet spot.
Mission Viejo home prices sit well above California's conventional loan limit. Many borrowers here need jumbo 1099 programs. Those have stricter reserve requirements — plan for 12 months of payments in savings.
Orange County's self-employed population is large. Lenders in this market see 1099 borrowers regularly. That experience matters when your file hits underwriting.
Some lenders allow it if your income increased year over year. Two years is still the standard for most programs.
Most 1099 programs use gross income from your 1099 forms — not the net income from your tax return. This is a key advantage over conventional loans.
Most lenders require at least a 620. Scores above 700 open up better rates and lower down payment options.
Expect 10–20% down on most 1099 programs. Jumbo amounts common in Orange County typically require more.
Conventional loans require W-2s and tax return income. 1099 loans use your contractor income forms directly — no employer verification needed.
Yes, rates are typically higher than conventional loans. The trade-off is qualification flexibility for self-employed borrowers. Rates vary by borrower profile and market conditions.