Question 1

Can I use one year of 1099s to qualify?

Accepted Answer

Some lenders allow it if your income increased year over year. Two years is still the standard for most programs.

Question 2

Do lenders use my income before or after deductions?

Accepted Answer

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.

Question 3

What credit score do I need for a 1099 loan?

Accepted Answer

Most lenders require at least a 620. Scores above 700 open up better rates and lower down payment options.

Question 4

How much do I need to put down in Mission Viejo?

Accepted Answer

Expect 10–20% down on most 1099 programs. Jumbo amounts common in Orange County typically require more.

Question 5

How is a 1099 loan different from a conventional loan?

Accepted Answer

Conventional loans require W-2s and tax return income. 1099 loans use your contractor income forms directly — no employer verification needed.

Question 6

Are 1099 loans more expensive than regular mortgages?

Accepted Answer

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.

1099 Loans in Mission Viejo for Independent Earners