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South San Francisco sits between biotech campuses and Peninsula tech hubs. Independent contractors here need mortgages that work with 1099 income, not traditional pay stubs.
We structure 1099 loans using your actual income flow. Most lenders want to see 12-24 months of consistent 1099 earnings. Some now accept crypto assets as reserves, expanding options for tech contractors with diversified holdings.
You need 620+ credit for most 1099 programs, though 680+ unlocks better rates. Income gets calculated by averaging your last two years of 1099 earnings, minus standard business deductions.
Down payment starts at 10% for primary homes. Lenders verify income through tax returns or 12 months of bank deposits. Self-employment gaps longer than 2 months require explanation letters.
About 40 of our 200+ wholesale lenders handle 1099 income. Each has different appetites for documentation types. Some accept one year of history if your income jumped recently.
Portfolio lenders price these deals individually. Credit unions typically require full tax returns. Non-QM lenders offer bank statement alternatives when tax deductions crush your qualifying income.
Most 1099 borrowers fail qualification because they write off too much. Your tax returns show $60K income, but you earned $120K before deductions. Bank statement loans solve this by using deposits, not reported income.
We shop lenders who understand contractor income patterns. Some accept recent income increases without two-year averaging. Match your documentation to the lender, not the other way around.
Bank statement loans work better when tax write-offs tank your reported income. Profit and loss loans need a CPA letter but accept current-year earnings. Asset depletion counts your investment accounts as income.
1099 loans hit the sweet spot when you file accurate returns with minimal deductions. Rates run 0.5-1% higher than conventional loans. That gap narrows at 720+ credit with 20% down.
South San Francisco condos and townhomes under $1.5M move fastest for 1099 borrowers. Warrants approval takes longer than conventional files, so lock rates when you find a property.
Many contractors here work Peninsula biotech or SF tech companies. Lenders like stable client relationships. Multi-year contracts with the same company strengthen your file even on 1099 status.
Some lenders approve with 12 months if your income is stable or increasing. Most require two years to calculate an average. We find programs that match your specific timeline.
Tax return programs add back depreciation and one-time expenses, but most write-offs reduce qualifying income. Bank statement loans ignore deductions and use gross deposits instead.
Typically two years of personal and business tax returns, recent 1099 forms, and profit and loss statements. Bank statement programs need 12-24 months of business account statements.
Expect rates 0.5-1% higher than conventional loans. Strong credit above 720 and 20%+ down payment narrow that gap. Rates vary by borrower profile and market conditions.
Select non-QM lenders now accept verified cryptocurrency as reserves, not income. This helps meet reserve requirements but doesn't increase your qualifying income directly.
Minimum 620 credit opens the door, but 680+ gets better rates and terms. Scores above 720 access the most competitive pricing across our lender network.
1099 Loans in South San Francisco