Question 1

Can I qualify with only one year of 1099 income?

Accepted Answer

Some lenders allow 12 months if you have strong credit and reserves. Most prefer 24 months to prove income stability. Shorter history means higher rates and down payment requirements.

Question 2

Do I need to file taxes before applying?

Accepted Answer

Yes, lenders verify 1099 income through filed returns or actual 1099 forms from clients. You can't qualify on projected income. Bank statement programs offer more flexibility if returns aren't filed yet.

Question 3

What if I have multiple 1099 clients?

Accepted Answer

That's fine as long as the income is consistent. Lenders prefer seeing repeat clients over constantly changing sources. Document all 1099 relationships clearly to speed underwriting.

Question 4

How do rates compare to conventional loans?

Accepted Answer

Expect 1-2% higher than conventional rates. Non-QM lenders price for added risk of non-traditional income. Your exact rate depends on credit score, down payment, and income documentation strength.

Question 5

Can I use projected income from a new contract?

Accepted Answer

No. Lenders only count income already received and documented. Wait until the new contract income appears on your 1099 or bank statements before applying for stronger qualification.

1099 Loans in Corona: Income Solutions for Independent Contractors