Question 1

Can I use one year of 1099s to qualify?

Accepted Answer

Some lenders allow it with strong compensating factors. Two years is the standard — one year adds scrutiny and usually requires higher reserves.

Question 2

Do 1099 loans carry higher rates than conventional loans?

Accepted Answer

Yes. Non-QM loans price above conventional because they fall outside agency guidelines. Rates vary by borrower profile and market conditions.

Question 3

What if I have both W-2 and 1099 income?

Accepted Answer

Mixed income can work in your favor. Lenders blend both sources — document each thoroughly and let the total picture speak.

Question 4

How much can I borrow with a 1099 loan in San Francisco?

Accepted Answer

Loan amounts depend on documented income and lender guidelines. SF prices often push into jumbo range, which adds reserve and credit requirements.

Question 5

Does a gap in 1099 income kill my application?

Accepted Answer

Not automatically. Lenders look at consistency over time. A brief gap with a solid explanation and active contracts often clears underwriting.

1099 Loans in San Francisco for Independent Earners