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Elk Grove has a growing base of self-employed residents — contractors, consultants, gig workers. Standard W-2 loans weren't built for how they earn.
A 1099 loan uses your contractor income to qualify. No tax returns required. Your actual deposits are what matter.
620+
Min Credit Score
1-2 Years of 1099s
Income Docs
10%
Min Down Payment
2 Years Preferred
Self-Employment History
Non-QM
Loan Type
Most lenders want 1-2 years of 1099 forms showing consistent income. Self-employment history matters — gaps raise flags.
Credit score minimums typically start at 620. Stronger scores open better rates. Rates vary by borrower profile and market conditions.
Big banks rarely touch 1099 loans. This is non-QM territory — non-Qualified Mortgage, meaning it falls outside standard agency guidelines.
Wholesale lenders specialize in this. At SRK CAPITAL, we shop your file across 200+ lenders to find who prices this loan type best.
The biggest mistake 1099 borrowers make: waiting until tax season. Your write-offs that reduce taxes also reduce your qualifying income.
We see this constantly. A contractor netting $120K after deductions may struggle to qualify for what their gross income would support.
Bank statement loans are a close alternative. Instead of 1099s, they use 12-24 months of deposits to calculate income.
If your write-offs are aggressive, bank statements may show higher qualifying income. P&L loans are another option for established contractors.
Sacramento County has a large population of healthcare contractors, state government consultants, and tech freelancers — many based in Elk Grove.
That income profile fits 1099 loans well. As of April 2026, demand for non-QM products in the Sacramento region remains active.
Some lenders accept one year. Most prefer two. One-year programs often require stronger credit and larger down payments.
No. Sole proprietors and single-member LLCs both qualify. You just need documented 1099 income from clients.
Lenders typically average your 1099 gross income over 12-24 months. High deductions on tax returns are not factored in.
Most 1099 programs start at 10% down. Putting down 20% improves your rate and removes mortgage insurance requirements.
Yes, typically. Non-QM loans carry a rate premium over conventional. Rates vary by borrower profile and market conditions.
Yes. Lenders can blend both income sources. The 1099 portion still needs a documented two-year history.
1099 Loans in Elk Grove