Question 1

Do I need two years of 1099 income to qualify?

Accepted Answer

Most lenders want two years of self-employment history. Some will work with one year if your income is strong and consistent.

Question 2

Can I use 1099 income from multiple clients?

Accepted Answer

Yes. Lenders add up 1099s from all sources. What matters is the total documented income, not how many clients paid you.

Question 3

Does a 1099 loan cost more than a conventional loan?

Accepted Answer

Usually yes. Non-QM loans carry higher rates than conventional. Rates vary by borrower profile and market conditions.

Question 4

What if my tax returns show low income due to write-offs?

Accepted Answer

That's exactly why 1099 loans exist. They use your gross 1099 income, not your tax return's net figure.

Question 5

Can I get a jumbo 1099 loan in Palo Alto?

Accepted Answer

Yes. Several wholesale lenders offer jumbo 1099 products. Expect stricter credit and reserve requirements at higher loan amounts.

Question 6

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

Accepted Answer

A 1099 loan uses your income forms. A bank statement loan uses your actual deposits. Both are non-QM options for self-employed borrowers.

1099 Loans in Palo Alto for Independent Earners