Question 1

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

Accepted Answer

Some lenders accept one year. Most prefer two. One-year programs often require stronger credit and larger down payments.

Question 2

Do I need to be incorporated to get this loan?

Accepted Answer

No. Sole proprietors and single-member LLCs both qualify. You just need documented 1099 income from clients.

Question 3

How is my income calculated from my 1099s?

Accepted Answer

Lenders typically average your 1099 gross income over 12-24 months. High deductions on tax returns are not factored in.

Question 4

What down payment do I need in Elk Grove?

Accepted Answer

Most 1099 programs start at 10% down. Putting down 20% improves your rate and removes mortgage insurance requirements.

Question 5

Are 1099 loan rates higher than conventional rates?

Accepted Answer

Yes, typically. Non-QM loans carry a rate premium over conventional. Rates vary by borrower profile and market conditions.

Question 6

Can I combine 1099 income with part-time W-2 income?

Accepted Answer

Yes. Lenders can blend both income sources. The 1099 portion still needs a documented two-year history.

1099 Loans in Elk Grove for Independent Contractors