Question 1

Can I use one year of 1099s to qualify?

Accepted Answer

Some lenders accept one year. Most want two. A strong credit profile and larger down payment improve your odds with one-year programs.

Question 2

Do my tax write-offs affect my qualifying income?

Accepted Answer

Yes — lenders use your gross 1099 income, but some subtract business expenses. Ask your broker how each lender calculates it.

Question 3

What credit score do I need for a 1099 loan?

Accepted Answer

Most lenders require 680 or higher. Some go down to 640 with a larger down payment and strong reserves.

Question 4

Is a 1099 loan the same as a bank statement loan?

Accepted Answer

No. A 1099 loan uses your 1099 forms to verify income. A bank statement loan uses deposit history instead — different calculation, different lenders.

Question 5

How much can I borrow with a 1099 loan in Scotts Valley?

Accepted Answer

Loan amounts vary by lender and your qualifying income. Non-QM lenders often go above conforming limits, which matters in higher-priced Santa Cruz County.

Question 6

Are rates higher on 1099 loans than conventional loans?

Accepted Answer

Yes, typically. Non-QM pricing carries a premium over conventional loans. Rates vary by borrower profile and market conditions.

1099 Loans in Scotts Valley, CA