Question 1

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

Accepted Answer

No. Bank statement programs let you qualify using 12-24 months of deposits instead of tax returns. This works better for contractors who write off most income.

Question 2

What expense factor do lenders apply to my 1099 income?

Accepted Answer

Most lenders use 1.25x to 1.5x your gross deposits depending on business type. Tech contractors typically get the lower factor since overhead costs run minimal.

Question 3

Can I use multiple 1099 income sources to qualify?

Accepted Answer

Yes. Lenders combine all documented 1099 income streams if you show 12+ months of history in each. Multiple clients actually strengthen your application by reducing concentration risk.

Question 4

How much larger are 1099 loan rates compared to conventional?

Accepted Answer

Expect 0.5-1.5% higher rates depending on credit score and down payment. Rates vary by borrower profile and market conditions as of February 2026.

Question 5

Do San Mateo lenders accept cryptocurrency as qualifying income?

Accepted Answer

Some non-QM lenders now accept verified crypto holdings for income and reserves. You need documented ownership history and professional valuation for qualification purposes.

1099 Loans in San Mateo: Financing Built for Independent Contractors