Question 1

Can I qualify with just one year of 1099 income?

Accepted Answer

Some lenders accept one year, but two is the standard. One year files carry higher rates and stricter terms.

Question 2

Do I need to be incorporated to get a 1099 loan?

Accepted Answer

No. Sole proprietors qualify. LLC and S-Corp structures work too, depending on how income is documented.

Question 3

How do lenders calculate income from my 1099s?

Accepted Answer

They typically average two years of gross 1099 income. Some lenders allow add-backs for specific deductions.

Question 4

Are interest rates higher on 1099 loans than conventional?

Accepted Answer

Yes. Non-QM loans carry rate premiums over conventional. Rates vary by borrower profile and market conditions.

Question 5

Can I buy a high-priced Sunnyvale home with a 1099 loan?

Accepted Answer

Yes. Several non-QM lenders offer jumbo-range balances. Your income and reserves determine how high you can go.

Question 6

What if my income varies a lot between years?

Accepted Answer

Declining income between year one and two is a red flag for lenders. Stable or growing income closes faster.

1099 Loans in Sunnyvale for Independent Contractors