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1099 Loans in Dixon
Dixon's agricultural and business services economy creates steady 1099 income for contractors, consultants, and trade professionals. Traditional lenders reject most of these borrowers based on tax returns that show heavy write-offs.
We close 1099 loans here regularly for ag consultants, equipment operators, and construction contractors who gross strong revenue but report minimal taxable income. The barrier isn't income quality—it's documentation format.
You need 12-24 months of continuous 1099 income from the same client base or industry. Lenders calculate qualifying income from your 1099 forms directly, not from tax returns that show business deductions.
Most lenders require 15-20% down, 640+ credit, and reserves covering 6-12 months of payments. Your DTI runs higher than conventional—up to 50% in some programs—because income calculation ignores tax write-offs.
Only 15-20 non-QM lenders in our network offer true 1099 programs. Most require full 1099 forms, not just income summaries, and they verify directly with issuing companies for amounts over certain thresholds.
Rate spreads run 1.5-2.5% above conventional, with pricing tiers based on down payment size and credit score. Lenders with the best 1099 terms often cap loan amounts at $1.5-2M, which covers most Dixon purchases comfortably.
The cleanest 1099 files show consistent income from 2-5 clients over 24 months. Single-client 1099 earners get scrutinized harder—lenders worry about income stability if that relationship ends.
I push clients toward 20% down when possible. It drops rates by 50-75 basis points and opens access to lenders with better prepayment terms. The monthly savings over 5 years pays back the extra down payment cash.
Bank statement loans work better if you mix 1099 and business income or run expenses through business accounts. Pure 1099 earners get cleaner underwriting with dedicated 1099 programs.
Profit & loss statement loans require CPA prep and sometimes interim statements. 1099 programs skip that cost and complexity—your income docs come straight from clients who issued the forms.
Dixon's smaller inventory means 1099 borrowers compete with conventional buyers on every listing. You need full approval before writing offers—sellers won't wait for complex non-QM underwriting after acceptance.
Properties near the ag processing facilities or industrial parks appraise easily. Rural parcels outside city limits sometimes trigger lender overlays requiring larger down payments or capping LTV at 75% instead of 80-85%.
Yes, but expect tougher scrutiny and potentially higher rates. Lenders prefer seeing 2-3 income sources to reduce concentration risk.
Lenders pull them to verify you filed, but they calculate income from 1099 forms directly. Write-offs that tank conventional approval don't hurt here.
Plan for 3-4 weeks with complete documentation. Lenders verify income directly with issuers, which adds 5-7 days versus conventional processing.
Lenders average 12-24 months of income. Seasonal dips don't disqualify you if the annual total supports your purchase price.
Absolutely. Rate-term refis work the same as purchases, and many borrowers refinance into conventional once they show two years of tax returns.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.