Question 1

How many years of 1099 income do I need?

Accepted Answer

Most programs require at least one year of consistent 1099 income. Two years strengthens your application and may improve your interest rate, but many lenders approve loans with just 12 months of documentation.

Question 2

Can I combine 1099 income with W-2 income?

Accepted Answer

Yes, many borrowers have both types of income. Lenders can use your W-2 income through traditional documentation while adding 1099 income to increase your total qualifying amount.

Question 3

Do I need to show business bank statements?

Accepted Answer

Not necessarily for pure 1099 loans, which focus on the forms themselves. However, having clean bank statements helps verify income consistency and may speed up the underwriting process.

Question 4

What if my 1099 income varies from month to month?

Accepted Answer

Lenders average your 1099 income over the documented period. Seasonal fluctuations are normal, but you'll need to demonstrate overall consistency and the ability to sustain the averaged income level.

Question 5

Are interest rates much higher than conventional loans?

Accepted Answer

Rates typically run 0.5-2% higher than conventional mortgages. Rates vary by borrower profile and market conditions, with factors like credit score, down payment, and income stability affecting your specific rate.

1099 Loans in Daly City: Financing Solutions for Self-Employed Professionals