Question 1

Can I use just one year of 1099 income to qualify?

Accepted Answer

Some lenders allow it if your income is strong and consistent. Two years is safer and opens more lender options.

Question 2

Will my tax write-offs hurt my approval?

Accepted Answer

Not with a 1099 loan. Lenders use your gross 1099 income, not your taxable income after deductions.

Question 3

How much do I need for a down payment in Watsonville?

Accepted Answer

Most 1099 loan programs require 10-20% down. More down can offset a lower credit score or shorter income history.

Question 4

Are rates higher on 1099 loans than conventional loans?

Accepted Answer

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

Question 5

How long does a 1099 loan take to close in Santa Cruz County?

Accepted Answer

Plan for 30-45 days. Non-QM underwriting is more manual than conventional — build that into your offer timeline.

Question 6

Do I need to be self-employed for a set number of years?

Accepted Answer

Most lenders want at least two years of self-employment history. One year may work with strong compensating factors.

1099 Loans in Watsonville, CA — Built for Self-Employed Borrowers