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Atherton has one of the highest concentrations of self-employed tech founders, consultants, and equity-compensated executives in California. Traditional lenders reject most of these borrowers despite substantial income.
1099 loans let you qualify using gross receipts instead of tax returns. You avoid the income deductions that tank your W-2 equivalent. This matters in a city where million-dollar homes are the baseline.
Most lenders want 12-24 months of 1099 statements showing consistent income. Credit minimums run 620-660 depending on loan size. Down payments start at 10% but expect 15-20% in this price range.
You need a business checking account and CPA letter confirming self-employment. Some lenders allow gaps between contracts if you show a pattern of repeat clients. Asset reserves matter more than job tenure here.
Only 15-20 lenders in our network handle true 1099 qualification. Most portfolio lenders cap these loans at $2-3 million. Anything above that requires blended documentation or significant liquid reserves.
Rate premiums run 0.5-1.25% over conventional. The spread widens above $2 million because fewer lenders compete. We shop across non-QM specialists who understand fluctuating contract income.
Half our Atherton 1099 deals close with bank statement loans instead. If you run expenses through your business account, statements show higher qualifying income than 1099 forms alone.
Tech contractors often have RSU vesting schedules that dwarf 1099 income. We pair 1099 qualification with asset depletion on liquid stock holdings. This combo gets approvals traditional banks miss entirely.
Bank statement loans pull income from 12-24 months of deposits. 1099 loans focus on gross receipts from client payments. If you expense heavily, bank statements usually win.
P&L statement loans let CPAs certify your income without full audits. That path works when 1099 forms show gaps or you have multiple LLCs. Each structure fits different business models.
Atherton properties start around $5 million and climb fast. Lenders scrutinize reserves hard at these price points. Expect to show 12-18 months of housing payments in liquid assets after closing.
Many buyers here hold stock in pre-IPO companies. Some lenders count restricted stock at 50-70% of value if liquidation is likely within two years. That changes qualification entirely for Series C and beyond founders.
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.
Lenders average your income over 12-24 months. Seasonal fluctuations are normal for contractors. They focus on the trend line, not individual months.
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.
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.
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