Question 1

Can I qualify using only one year of 1099 income?

Accepted Answer

Some lenders accept 12 months if you were W-2 in the same field before going independent. Pure startups need 24 months of history.

Question 2

Do my business write-offs hurt my mortgage application?

Accepted Answer

No. 1099 loans use gross income from your forms, not net income after deductions. That's the entire point of this program.

Question 3

What if I have multiple 1099 clients throughout the year?

Accepted Answer

That's normal. Lenders add up all 1099 forms and average them. Diversified income sources often strengthen your file.

Question 4

How do rates compare to conventional loans?

Accepted Answer

Expect 0.50-1.50% higher than conventional rates. Rates vary by borrower profile and market conditions.

Question 5

Can I use 1099 income for a San Luis Obispo investment property?

Accepted Answer

Yes. Most lenders require 20-25% down for investment properties. Reserve requirements increase to 12 months of payments.

1099 Loans in San Luis Obispo: Financing Built for Independent Contractors