Question 1

Can I use 1099 income from multiple clients?

Accepted Answer

Yes, lenders combine income from all 1099 sources. They look for consistency across contracts, not single-client dependence. Diversified income streams often strengthen your application.

Question 2

What if my 1099 income varies by quarter?

Accepted Answer

Lenders average your income over 12-24 months. Seasonal fluctuations are normal for contractors. They focus on the trend line, not individual months.

Question 3

Do I need two years of self-employment history?

Accepted Answer

Most 1099 loans require 12-24 months of independent contractor income. Some lenders accept less if you transitioned from W-2 work in the same field.

Question 4

How do lenders verify 1099 income?

Accepted Answer

They request your 1099 forms, business bank statements, and a CPA letter. Some also pull transcripts from the IRS. Verification is stricter than W-2 employment.

Question 5

Can I qualify with only 1099 income and no tax returns?

Accepted Answer

Yes, that's the point of 1099 loans. You avoid showing tax returns that reflect business deductions. Lenders underwrite on gross receipts instead of taxable income.

1099 Loans in Atherton: Financing for Independent Contractors in Silicon Valley