Question 1

Can I use projected contract income to qualify?

Accepted Answer

No, lenders only consider completed 1099 income from past 12-24 months. Signed contracts for future work don't count toward qualification income calculations.

Question 2

Do my tax write-offs hurt my loan application?

Accepted Answer

Not on 1099 loans. These programs calculate income before business deductions, so aggressive tax strategies don't reduce your qualifying amount like they do on conventional loans.

Question 3

What if I contract through multiple companies?

Accepted Answer

That's fine as long as you show consistent revenue history. Lenders look at total 1099 income across all sources, not individual client relationships.

Question 4

Can I count bonuses or stock compensation?

Accepted Answer

Cash bonuses on your 1099s count toward qualifying income. Unvested stock options and RSUs don't count, though vested holdings can serve as reserves with some lenders.

Question 5

How long does 1099 loan approval take?

Accepted Answer

Typically 3-4 weeks with clean documentation. The income calculation takes longer than W-2 verification since underwriters review two years of 1099s and bank deposits.

1099 Loans in East Palo Alto: Financing Built for Self-Employed Tech Workers