Question 1

Can I qualify with 1099 income from multiple clients?

Accepted Answer

Yes, lenders actually prefer seeing income diversity across multiple clients rather than dependence on a single source. Combine all your 1099 income when calculating your qualifying amount.

Question 2

How do lenders calculate my income from 1099 forms?

Accepted Answer

Most lenders average your gross 1099 income over 12-24 months without deducting business expenses. This typically shows much higher income than your tax returns reflect after deductions.

Question 3

Do I need two years in the same industry?

Accepted Answer

Generally yes, though some lenders accept one year if you have strong income and credit. Switching between related fields usually works better than completely different industries.

Question 4

What if my 1099 income fluctuates seasonally?

Accepted Answer

Seasonal fluctuations are acceptable if you can document the pattern over multiple years. Lenders will average your income and may focus on your peak earning periods.

Question 5

Are interest rates higher on 1099 loans?

Accepted Answer

Rates typically run 0.5-2% higher than conforming loans due to the non-QM structure. Rates vary by borrower profile and market conditions, with stronger applications earning better pricing.

1099 Loans in Millbrae: Mortgage Solutions for Self-Employed Professionals