Question 1

Can I use 1099 income from multiple clients?

Accepted Answer

Yes, lenders combine all 1099 income sources. Diversified client lists often qualify easier than single-client contractors because income looks more stable.

Question 2

Do I need two years of self-employment history?

Accepted Answer

Not always. If you worked W-2 in the same field before going 1099, many lenders accept one year of independent contractor income with prior employment verification.

Question 3

How do lenders calculate my qualifying income?

Accepted Answer

They average your gross 1099 income over 12-24 months before applying debt ratios. No deductions are subtracted, unlike tax return-based loans.

Question 4

What if my 1099 income varies seasonally?

Accepted Answer

Lenders average the full period, so seasonal dips get smoothed out. Strong Q4 earnings help offset slower summer months for contractors.

Question 5

Are closing costs higher on 1099 loans?

Accepted Answer

Lender fees run similar to conventional loans. You'll pay slightly higher rates, which affects interest over time but not upfront closing costs.

1099 Loans in Grover Beach: Financing Built for Self-Employed Borrowers