Question 1

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

Accepted Answer

Most lenders require two years. A few non-QM programs allow one year, but expect higher rates and stricter terms.

Question 2

How do lenders calculate my income from 1099s?

Accepted Answer

They average your gross 1099 income over two years. Deductions on your tax return can reduce that number significantly.

Question 3

Are 1099 loan rates higher than conventional rates?

Accepted Answer

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

Question 4

Can I buy a second home in Palm Desert with a 1099 loan?

Accepted Answer

Yes. Non-QM lenders do finance second homes. Expect a larger down payment and slightly higher rate than a primary purchase.

Question 5

What if my income varies a lot year to year?

Accepted Answer

Lenders use a two-year average. High swings make approval harder — a bank statement loan might produce a better number.

Question 6

Do I need to be self-employed for a certain time period?

Accepted Answer

Most lenders want two years of self-employment history. Less than that and your approval options get very limited.

1099 Loans in Palm Desert for Independent Earners