Question 1

Can I use projected 1099 income from a new contract?

Accepted Answer

No. Lenders only count income you've already received and documented with filed 1099 forms. Signed contracts for future work don't qualify until the income is earned and reported.

Question 2

Do I need to provide all my 1099 forms?

Accepted Answer

Yes. Lenders want every 1099 you received during the qualifying period. Missing forms create income gaps that underwriters flag as red flags during review.

Question 3

How do lenders handle variable monthly 1099 income?

Accepted Answer

They average your total 1099 income over 12 or 24 months. One slow quarter won't kill the deal if your overall trend shows stability and sufficient total earnings.

Question 4

Can I combine 1099 and W-2 income for qualifying?

Accepted Answer

Yes. Most lenders will blend both income types if you've maintained both for at least 12 months. Each income source gets evaluated under its own documentation rules.

Question 5

What if my 1099 income dropped last year?

Accepted Answer

Declining income creates approval challenges. Lenders may use the lower year's income for qualification or require a letter explaining why the trend will reverse with evidence.

1099 Loans in Los Altos: Financing for Self-Employed Tech Professionals