Question 1

Can I use multiple 1099 income sources?

Accepted Answer

Yes, lenders combine income from all sources as long as each has 12+ months of history. Diversified income often strengthens your file.

Question 2

What if my 1099 income increased recently?

Accepted Answer

Most lenders average 12-24 months, so recent spikes help less than consistent growth. Some use only the most recent 12 months if income trended up.

Question 3

Do 1099 loans require tax returns?

Accepted Answer

Some programs use 1099 forms plus bank statements instead of full returns. Others need one or two years of returns depending on your credit and down payment.

Question 4

How much higher are 1099 loan rates?

Accepted Answer

Expect 0.5-2% above conforming rates depending on credit, down payment, and documentation. Strong files hit the lower end of that range.

Question 5

Can I buy investment property with a 1099 loan?

Accepted Answer

Yes, though down payments jump to 20-25% minimum. Rates run about 0.5% higher than owner-occupied 1099 loans.

1099 Loans in Lathrop: Financing Built for Independent Contractors