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1099 Loans in Sebastopol
Sebastopol runs on freelance talent. Tech consultants, vineyard contractors, artists, farm managers—most don't pull W-2s.
Traditional lenders reject 1099 borrowers who write off half their income. We use your actual deposits, not tax returns.
Sonoma County real estate moves fast. Self-employed buyers need approvals in days, not weeks of back-and-forth documentation.
Most 1099 earners here show $80K taxable but bank $140K. Standard underwriting ignores that gap and kills your buying power.
You need 12-24 months of 1099 history in the same field. Job-hopping kills deals. Lenders want income consistency, not variety.
Credit minimums hit 600-640 depending on down payment. Put 20% down and you can close with a 600 score most competitors reject.
Self-employment verification runs through your 1099 forms, business licenses, and client contracts. We're proving you're legitimate, not employed.
Debt-to-income ratios stretch to 50% on 1099 programs. That's 10 points higher than conventional, which matters in expensive Sonoma County.
Maybe 15 of our 200+ lenders actually fund 1099 loans. Most wholesale sources still want W-2s and two years of tax returns.
The lenders who do this program price it 0.5-1.5% above conventional rates. You're paying for flexibility, not points on your credit report.
Portfolio lenders beat aggregators here. They hold the loan, so they care about real repayment ability instead of Fannie Mae checkbox compliance.
Rate shopping wastes time on 1099 deals. Finding a lender who actually understands your income structure matters more than eighth-point rate differences.
Half our Sebastopol clients could qualify conventional if they stopped writing off their home office and mileage. But that costs them $8K in taxes to save 0.75% on rate.
We run both scenarios—1099 program versus tax-return qualifying—then show you the five-year math. Sometimes paying a higher rate beats changing your tax strategy.
Lenders calculate 1099 income differently. Some average 12 months, others take the most recent quarter and annualize. A $120K year becomes $100K or $140K depending on method.
Document everything now. When you find a property, we need 1099s, contracts, and bank statements within 48 hours or you lose in multiple-offer situations.
Bank statement loans pull from deposits, 1099 loans pull from forms. If your income is mostly 1099s, use those—they're cleaner and faster to verify.
P&L loans work when you mix 1099 and cash income, but they require a CPA signature and cost more. Stick with straight 1099 if your income is documented.
Investor loans don't care about income source, just assets. If you're sitting on $500K liquid, asset depletion beats 1099 programs on rate and simplicity.
Conventional with two years of returns wins on rate—if you show enough taxable income. Most Sebastopol freelancers write off too much to qualify that way.
Sebastopol's small-town market means fewer comps and pickier appraisals. Unique properties—farmhouses, converted barns—sometimes need portfolio lenders who aren't slaves to appraisal algorithms.
Sonoma County properties often include ADUs, workshops, or vineyard parcels. Make sure your 1099 lender counts rental income from those units—not all do.
Seasonal income swings hit wine, ag, and tourism contractors hard. Lenders averaging 12 months smooth that out better than quarterly calculations.
Most Sebastopol deals involve seller credits for wells, septic, or deferred maintenance. Your 1099 lender needs to allow credits up to 6% or you can't structure offers competitively.
Yes, we combine all 1099 sources if you've worked in the same field consistently. Mixing unrelated industries raises red flags with underwriters.
Most lenders require 12 months minimum, some stretch to 24. You'll need to wait or explore asset-based programs if you have significant liquid reserves.
Not necessarily. You can go as low as 10% down with strong credit. But 20% down unlocks better rates and looser credit requirements.
They use the gross 1099 amounts, not your Schedule C profit. That's the entire advantage—your write-offs don't reduce qualifying income.
Expect 0.5-1.5% above conventional rates. On a $600K loan, that's roughly $200-400 more monthly versus traditional financing.
Absolutely. 1099 programs work for primary, secondary, and investment purchases. Some lenders even count projected rental income toward qualifying.
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.