Question 1

Can I qualify using only my 1099 forms?

Accepted Answer

Yes. Non-QM lenders accept 1-2 years of 1099s as primary income documentation. You won't need full tax returns in most cases.

Question 2

Does my Schedule C hurt my qualifying income?

Accepted Answer

On 1099 loans, lenders use gross 1099 earnings — not Schedule C net income. Your write-offs don't reduce what you qualify for.

Question 3

What credit score do I need for a 1099 loan in Goleta?

Accepted Answer

Most non-QM lenders want 680 or higher. Scores below that may still qualify but expect higher rates.

Question 4

Are 1099 loan rates higher than conventional rates?

Accepted Answer

Yes. Non-QM loans carry a rate premium. Rates vary by borrower profile and market conditions — shopping lenders is critical.

Question 5

What if I had one bad income year recently?

Accepted Answer

Lenders want to see consistency. One weak year can hurt your file. A broker can find lenders that average both years or use the stronger one.

Question 6

How much do I need for a down payment?

Accepted Answer

Expect 10-20% down for most 1099 loans. Larger down payments can offset weaker credit or income documentation.

1099 Loans in Goleta for Independent Contractors