Question 1

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

Accepted Answer

Some lenders accept one year, but two years is the standard. One-year programs often require a higher credit score or larger down payment.

Question 2

Do 1099 loans have higher rates than conventional?

Accepted Answer

Yes, typically. Non-QM pricing carries a premium over conventional rates. Rates vary by borrower profile and market conditions.

Question 3

What if my income varies year to year?

Accepted Answer

Lenders usually average the two years. A significant drop in year two can hurt — we look for lenders who favor the most recent year.

Question 4

Can I use 1099 income from multiple clients?

Accepted Answer

Yes. All 1099 sources count. Lenders want to see the forms, not just totals — have every 1099 from each client organized and ready.

Question 5

Is a 1099 loan harder to close than a conventional loan?

Accepted Answer

The process takes more documentation upfront. With the right lender and broker, timelines are comparable to standard non-QM loans.

1099 Loans in Loma Linda for Independent Contractors