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Stockton has a large base of self-employed workers, gig contractors, and independent tradespeople. Standard W-2 underwriting shuts them out — 1099 loans don't.
This is a non-QM loan. That means it falls outside conventional guidelines but is a legitimate financing tool for 1099 earners with solid income.
620–660 typical
Min Credit Score
1–2 yrs of 1099s
Income Docs
10–20% minimum
Down Payment
2 yrs preferred
Self-Employment
Non-QM
Loan Type
1099 Loans in Stockton
Lenders use your 1099 forms — typically 1 to 2 years — to calculate qualifying income. No pay stubs. No employer verification.
Expect a minimum credit score around 620-660 depending on the lender. Down payment requirements usually start at 10-20%.
Most retail banks don't offer 1099 loans. You need a broker with access to wholesale non-QM lenders — that's where these programs actually live.
At SRK CAPITAL, we work with 200+ wholesale lenders. Several specialize in 1099 income. We match your profile to the right one.
The biggest mistake I see: contractors write off too much on taxes. Your taxable income looks low — but your 1099s tell a different story.
That's the point of this loan. We use gross 1099 income, not your Schedule C after deductions. It's the right tool for how you actually earn.
Bank statement loans use 12-24 months of deposits to qualify. 1099 loans use your actual contractor income forms. Both are non-QM — the right fit depends on how you get paid.
If you have business expenses that inflate your bank deposits, 1099 income calculation may be cleaner. A broker can run both scenarios and compare.
Stockton's economy includes logistics, healthcare, agriculture, and construction — all industries with high concentrations of 1099 workers.
San Joaquin County home prices make this loan viable. You don't need jumbo-level borrowing to buy here, which keeps non-QM rates more manageable.
Most lenders want 1-2 years of 1099 forms. Some also ask for a CPA letter confirming self-employment status.
Some lenders allow one year. You'll likely need stronger credit and a larger down payment to offset the shorter history.
Yes, non-QM loans carry higher rates than conventional products. Rates vary by borrower profile and market conditions.
The industry itself doesn't matter. What matters is that your 1099 income is consistent and documented for 1-2 years.
Some non-QM lenders allow 2-4 unit purchases with 1099 income. Down payment and reserve requirements are typically higher.
A 1099 loan uses your contractor income forms directly. A bank statement loan uses monthly deposit history instead.