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San Jose runs on tech contractors, consultants, and freelancers. W-2 jobs are not the only way people earn serious money here.
1099 loans are built for that reality. They use your contract income — not a pay stub — to qualify you for a mortgage.
620–680
Min Credit Score
1–2 Years 1099s
Income Docs
10–20%
Down Payment
21–30 Days
Avg Close Time
Non-QM
Loan Type
1099 Loans in San Jose
Lenders typically want 1-2 years of 1099 forms. They average your income across that period to set your qualifying number.
Expect a minimum credit score around 620-680 depending on the lender. Stronger credit gets you better rates and lower down payment requirements.
Local decision guide
Use this guide to connect 1099 loans eligibility, lender expectations, and local market factors before comparing payment options in San Jose.
San Jose runs on tech contractors, consultants, and freelancers. W-2 jobs are not the only way people earn serious money here.
1099 loans are built for that reality. They use your contract income — not a pay stub — to qualify you for a mortgage.
Lenders typically want 1-2 years of 1099 forms. They average your income across that period to set your qualifying number.
Banks rarely offer 1099 loans. This is a non-QM product — meaning it lives in the wholesale and private lender space.
At SRK CAPITAL, we shop 200+ wholesale lenders to find who prices this program best for your income profile. Rates vary by borrower profile and market conditions.
The biggest mistake I see: contractors filing aggressive tax deductions, then wondering why their qualifying income is near zero.
Your 1099 income is taken at face value — but lenders still look at continuity. Two strong years beats one great year every time.
Bank statement loans are the closest alternative. They use 12-24 months of deposits instead of 1099 forms — useful if your income mixes sources.
Profit & Loss statement loans work well for contractors who have an accountant. Each path has tradeoffs on rate and documentation.
San Jose home prices are high. That means loan amounts often push into jumbo territory, which adds another layer to 1099 underwriting.
Santa Clara County's market rewards borrowers who move fast. Having your 1099 docs organized before you shop saves weeks when you find the right property.
Most lenders want two years. Some accept one year if your income is strong and consistent.
Yes. Lenders can blend both income types. Your file just needs documentation for each source.
On a 1099 loan, lenders use your gross 1099 income — not your taxable income. Deductions matter less than on a conventional loan.
Yes, typically. Non-QM products carry a rate premium. Rates vary by borrower profile and market conditions.
Plan for 10-20% down. Larger down payments unlock better rates and easier approvals on 1099 files.
Non-QM loans take 21-30 days on average. Having your 1099s and bank statements ready upfront cuts that down.