Question 1

Do I need two full years of 1099 income?

Accepted Answer

Most lenders want two years. Some accept one year if your income is strong and consistent.

Question 2

Can I use both W-2 and 1099 income to qualify?

Accepted Answer

Yes. Lenders can blend both income types. Your file just needs documentation for each source.

Question 3

Will my tax deductions hurt my qualifying income?

Accepted Answer

On a 1099 loan, lenders use your gross 1099 income — not your taxable income. Deductions matter less than on a conventional loan.

Question 4

Are 1099 loan rates higher than conventional rates?

Accepted Answer

Yes, typically. Non-QM products carry a rate premium. Rates vary by borrower profile and market conditions.

Question 5

How much do I need for a down payment in San Jose?

Accepted Answer

Plan for 10-20% down. Larger down payments unlock better rates and easier approvals on 1099 files.

Question 6

How long does the approval process take?

Accepted Answer

Non-QM loans take 21-30 days on average. Having your 1099s and bank statements ready upfront cuts that down.

1099 Loans in San Jose for Independent Contractors