Question 1

Can I qualify with only one year of 1099 income?

Accepted Answer

Some lenders accept 12 months of strong 1099 documentation, especially with higher credit scores and larger down payments. Two years remains the standard, but exceptions exist for well-qualified borrowers.

Question 2

Do all my 1099 forms need to come from the same clients?

Accepted Answer

Multiple clients are acceptable and often expected. Lenders prefer seeing consistent total income rather than dependence on a single source, though stable client relationships strengthen applications.

Question 3

How do lenders calculate my qualifying income from 1099s?

Accepted Answer

Most average your gross 1099 receipts over 12-24 months without Schedule C deductions. Some lenders apply small percentage reductions for estimated business costs, but far less than tax return methods.

Question 4

Will my business write-offs hurt my 1099 loan application?

Accepted Answer

No—that's the key advantage. These programs use gross 1099 income before write-offs, recognizing that deductions reduce taxes without reflecting actual earning capacity or ability to repay.

Question 5

Can I use 1099 income for investment properties in Colma?

Accepted Answer

Yes, many 1099 loan programs cover investment properties. Requirements typically include larger down payments and reserves compared to primary residences, with some lenders requiring additional documentation.

1099 Loans in Colma: Financing for Self-Employed Professionals in San Mateo County