Question 1

Can I use 1099 income from multiple clients?

Accepted Answer

Yes, most lenders combine income from all 1099 sources. You'll need documentation showing 12-24 months of deposits from each significant source to prove consistency.

Question 2

What if my income varies month to month?

Accepted Answer

Lenders average your monthly deposits over 12 or 24 months. Seasonal fluctuations are acceptable as long as the trend shows stability or growth.

Question 3

Do 1099 loans require higher interest rates?

Accepted Answer

Rates run 1-2% above conventional loans as of February 2026. Strong credit and larger down payments secure better pricing. Rates vary by borrower profile and market conditions.

Question 4

Can I refinance an existing mortgage with 1099 income?

Accepted Answer

Absolutely. 1099 loans work for purchases and refinances. Cash-out refinances typically require 20-25% equity and follow the same income documentation rules.

Question 5

How long does 1099 loan approval take?

Accepted Answer

Expect 3-5 weeks from application to closing. Documentation collection takes longer than conventional loans since lenders manually review bank statements rather than automated tax transcripts.

Question 6

What if I just started receiving 1099 income this year?

Accepted Answer

Most programs require 12 months minimum. If you switched from W-2 to 1099 in the same profession, some lenders count that as continuous employment and waive the waiting period.

1099 Loans in Atascadero – Mortgages Built for Independent Contractors