Question 1

Do I need two years of 1099 income to qualify?

Accepted Answer

Most lenders want 12-24 months of consistent 1099 earnings. Some approve borrowers with 12 months if income is strong and trending up. Gaps longer than 60 days require explanation letters.

Question 2

Can I use 1099 income from multiple clients?

Accepted Answer

Yes, lenders combine income from multiple sources. Three or fewer clients get better pricing than ten smaller ones. They verify each 1099 directly, so client responsiveness matters during underwriting.

Question 3

How do rates compare to conventional mortgages?

Accepted Answer

Expect 1-2% higher than conventional rates depending on down payment and credit. Rates vary by borrower profile and market conditions. Stronger documentation and larger down payments reduce the spread.

Question 4

What if my 1099 income varies month to month?

Accepted Answer

Lenders average your 12-24 month income and look for overall consistency. Seasonal fluctuations are fine if your total annual income is stable. Large unexplained drops trigger additional documentation requests.

Question 5

Can I buy an investment property with a 1099 loan?

Accepted Answer

Yes, but expect 25% down minimum and slightly higher rates. Some lenders cap investment properties at $2 million in Saratoga. Your debt-to-income ratio gets tighter scrutiny on non-owner-occupied deals.

1099 Loans in Saratoga: Financing for Independent Contractors and Freelancers