Question 1

Can I use just one year of 1099s to qualify?

Accepted Answer

Some lenders allow it with strong compensating factors like reserves or a high credit score. Two years is more reliable and opens more lender options.

Question 2

Does a 1099 loan cost more than a conventional loan?

Accepted Answer

Yes, non-QM rates run higher than conventional. Rates vary by borrower profile and market conditions — the tradeoff is qualifying at all.

Question 3

Can I use 1099 income from multiple clients?

Accepted Answer

Yes. Lenders typically add up all 1099 sources. Consistency across clients over two years strengthens your file.

Question 4

Do I need to be incorporated to get a 1099 loan?

Accepted Answer

No. Sole proprietors qualify. You just need to show you've been self-employed and actively earning 1099 income.

Question 5

Will rural Portola properties cause issues with 1099 loan approval?

Accepted Answer

Rural properties can face tighter appraisal scrutiny. Non-QM lenders vary on this — we check property eligibility before submitting.

Question 6

What if my 1099 income dropped last year?

Accepted Answer

Declining income raises red flags. Lenders may average or use the lower year. A strong explanation and solid reserves can help offset it.

1099 Loans in Portola, CA for Independent Contractors