Question 1

Do I need two years of 1099 income to qualify?

Accepted Answer

Most lenders want two years. Some accept one year with strong income history and compensating factors like reserves.

Question 2

Can I use both W-2 and 1099 income?

Accepted Answer

Yes. Lenders can blend both income types. Your file just needs to document each source clearly.

Question 3

Will my tax deductions hurt my qualifying income?

Accepted Answer

Not with a 1099 loan. Lenders use your 1099 gross, not your Schedule C net after write-offs.

Question 4

What credit score do I need for a 1099 loan in Capitola?

Accepted Answer

Most programs start at 640. Higher scores improve your rate. Rates vary by borrower profile and market conditions.

Question 5

How is this different from a Bank Statement Loan?

Accepted Answer

A 1099 loan uses your contractor income forms. A Bank Statement Loan uses actual deposit history. Sometimes one qualifies you for more.

Question 6

Are 1099 loans harder to close than conventional loans?

Accepted Answer

They take more documentation upfront. A well-prepared file closes on a normal timeline — preparation is the key.

1099 Loans in Capitola for Independent Earners