Question 1

Can I use 1099 income from multiple companies?

Accepted Answer

Yes, but lenders prefer 2-3 consistent clients over 10+ sporadic gigs. They're evaluating income stability, not diversity.

Question 2

What if I just started contract work 6 months ago?

Accepted Answer

Most 1099 programs require 12 months minimum. Bank statement loans might work with shorter history if deposits show consistent income.

Question 3

Do I need to show my full tax returns?

Accepted Answer

No. 1099 loans use your 1099 forms directly. Tax returns often hurt more than help because deductions reduce qualifying income.

Question 4

How much does 1099 income get reduced for qualification?

Accepted Answer

Most lenders apply 0-25% reduction depending on industry and income consistency. Tech contractors typically see lower reductions than gig workers.

Question 5

Can I refinance with a 1099 loan if I have a conventional loan now?

Accepted Answer

Yes. Many tech contractors refinance from conventional to 1099 loans after going independent. Rates will be higher but approval odds improve.

Question 6

What documentation do I need beyond 1099 forms?

Accepted Answer

Most lenders want signed contracts or client letters proving ongoing work. They're confirming your income isn't ending next month.

1099 Loans in Redwood City: Financing for Self-Employed Tech Contractors