Question 1

Do I need two years of 1099 income to qualify?

Accepted Answer

Most lenders want 24 months. Some programs accept 12 months with strong compensating factors like high credit or large reserves.

Question 2

Can I use 1099s and W-2s together?

Accepted Answer

Yes. If you have mixed income, lenders can often combine both. We structure the file to maximize your qualifying amount.

Question 3

Will my tax write-offs hurt my 1099 loan?

Accepted Answer

They can. Lenders use your gross 1099 income, not net after deductions. But high expenses on returns still factor into the review.

Question 4

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

Accepted Answer

Most programs start around 620. For better rates and higher loan amounts in Orange County, 700+ puts you in a stronger position.

Question 5

Are 1099 loans more expensive than conventional loans?

Accepted Answer

Yes, typically. Non-QM products carry higher rates than conventional financing. Rates vary by borrower profile and market conditions.

Question 6

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

Accepted Answer

1099 loans use your contractor income forms. Bank statement loans use actual deposits. We compare both to find the stronger qualifier for you.

1099 Loans in Rancho Santa Margarita for Independent Contractors