Question 1

Can I qualify for a 1099 loan if I just started contracting this year?

Accepted Answer

Most programs require 12-24 months of 1099 history to establish income stability. Some lenders may consider shorter histories with larger down payments or if you transitioned from W-2 employment in the same field.

Question 2

How do lenders calculate my income from 1099 forms?

Accepted Answer

Lenders typically use gross 1099 income without deducting business expenses, unlike traditional mortgages that analyze tax returns. This often results in higher qualifying income than conventional financing would allow.

Question 3

Are interest rates higher on 1099 loans than conventional mortgages?

Accepted Answer

Rates vary by borrower profile and market conditions but generally run 0.5-2% higher than conventional loans. Your credit score, down payment, and income stability significantly impact the rate you receive.

Question 4

Do I need to provide tax returns for a 1099 loan?

Accepted Answer

Most 1099 programs don't require full tax returns, relying instead on the 1099 forms themselves and bank statements. This streamlined approach benefits self-employed borrowers who take significant business deductions.

Question 5

Can I use 1099 loans to buy investment property in Menlo Park?

Accepted Answer

Yes, many 1099 loan programs work for investment properties, though down payment requirements typically increase to 20-30%. The income qualification process remains the same as for primary residences.

1099 Loans in Menlo Park: Financing Solutions for Self-Employed Tech Professionals