Question 1

Can I use one year of 1099 income to qualify?

Accepted Answer

Some lenders accept one year. Two years creates a stronger file and opens more lender options.

Question 2

Do 1099 loans have higher rates than conventional?

Accepted Answer

Yes, typically. Non-QM loans carry more lender risk. Rates vary by borrower profile and market conditions.

Question 3

What if my income varies year to year?

Accepted Answer

Lenders usually average two years of 1099 income. A sharp dip in year two can hurt your qualifying income.

Question 4

Can I buy a condo in Carpinteria with a 1099 loan?

Accepted Answer

Yes, but the condo must meet the lender's project approval standards. Non-warrantable condos add complexity.

Question 5

How is a 1099 loan different from a bank statement loan?

Accepted Answer

A 1099 loan uses your income forms directly. A bank statement loan uses deposit history instead of income documents.

Question 6

Do I need a CPA letter for a 1099 loan?

Accepted Answer

Not always. Some lenders require a CPA letter confirming self-employment. Others just need the 1099 forms.

1099 Loans in Carpinteria for Self-Employed Borrowers