Question 1

Can I use 1099 income from multiple clients?

Accepted Answer

Yes, lenders combine income from all verified 1099 sources. Consistency across 12-24 months matters more than client count. Stable monthly totals qualify easier than erratic deposits.

Question 2

Do I need to provide business tax returns?

Accepted Answer

No, that's the point of 1099 programs. Lenders verify income directly from 1099 statements and bank deposits. Your Schedule C write-offs don't reduce qualifying income.

Question 3

What if my 1099 income varies seasonally?

Accepted Answer

Lenders average your income over 12-24 months. Seasonal fluctuations work fine if the annual total shows stability. Hospitality and construction contractors qualify regularly with this pattern.

Question 4

How do rates compare to conventional loans?

Accepted Answer

Expect 1-2% higher rates than conventional programs. The pricing reflects non-QM status and alternative documentation. Strong credit and larger down payments improve pricing.

Question 5

Can I refinance with a 1099 loan?

Accepted Answer

Yes, cash-out and rate-term refinances both work. Same income documentation applies. Equity requirements typically start at 20-25% remaining after cash-out.

1099 Loans in Half Moon Bay: Mortgages Built for Self-Employed Coastal Professionals