Question 1

Can I use 1099 income from multiple clients to qualify?

Accepted Answer

Yes, lenders combine all 1099 income sources. They look for overall consistency and verify each client relationship is likely to continue.

Question 2

What if my 1099 income fluctuates seasonally?

Accepted Answer

Lenders average 12-24 months to smooth seasonal variation. If your income trends upward, some programs use shorter averaging periods that benefit you.

Question 3

Do I need tax returns for a 1099 loan?

Accepted Answer

Most lenders require one or two years of returns to verify the 1099 income you reported. Some programs skip returns if you provide 24 months of 1099s and bank deposits matching that income.

Question 4

How do lenders handle business expenses on my tax return?

Accepted Answer

They add back legitimate business deductions like vehicle expenses, home office, equipment, and depreciation. Personal expenses and losses don't get added back.

Question 5

Can I buy investment property in Rio Vista with 1099 income?

Accepted Answer

Yes, most 1099 programs allow investment purchases. You'll need 20-25% down and the lender will count 75% of projected rental income toward qualification.

1099 Loans in Rio Vista: Financing for Independent Contractors