Question 1

Do I need two years of 1099 income to qualify in Santa Cruz?

Accepted Answer

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

Question 2

Can I use 1099 income from multiple clients?

Accepted Answer

Yes. Lenders add up all 1099 sources. You don't need a single employer — total income is what matters.

Question 3

Will my tax deductions hurt my qualifying income?

Accepted Answer

They can. High write-offs reduce your reported income. A bank statement loan might be a better fit in that case.

Question 4

Are 1099 loan rates higher than conventional rates?

Accepted Answer

Yes, typically. Non-QM loans carry more lender risk. Rates vary by borrower profile and market conditions.

Question 5

What credit score do I need for a 1099 loan?

Accepted Answer

Requirements vary by lender. Higher scores get better terms. Some programs go below 680 with stronger equity.

Question 6

Can I buy a jumbo-priced home in Santa Cruz with a 1099 loan?

Accepted Answer

Yes. Several non-QM lenders offer jumbo 1099 programs. Expect stricter reserves and down payment requirements.

1099 Loans in Santa Cruz for Independent Earners