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1099 Loans in Sonoma
Sonoma's economy runs on independent contractors—vineyard consultants, winemakers, hospitality workers, and tech professionals who choose 1099 status. Standard mortgages penalize these earners by ignoring irregular income patterns that drive Wine Country's seasonal business cycles.
Traditional underwriting treats tax write-offs as income reduction. That's a problem when your CPA structured deductions to minimize tax liability. 1099 loans flip the script by focusing on gross deposits and cash flow, not adjusted gross income.
Most 1099 loan programs require 12-24 months of consecutive contractor income. You'll need a 620-680 credit score depending on the lender, and down payments start at 10-15% for purchase transactions.
Lenders verify income through 1099 forms and bank statements, not tax returns. This matters when your Schedule C shows $80K after deductions but your actual deposits hit $140K. We qualify you on the higher number.
Fewer than 30 lenders in our network offer true 1099 programs. Most require non-QM expertise that regional banks don't have. The pricing spread between the best and worst lender on identical files runs 0.75-1.25% in rate.
Some lenders calculate income using just the 1099 forms. Others blend 1099s with bank statements for higher qualification amounts. The calculation method changes your buying power by $50K-$150K on the same income.
Most 1099 borrowers don't realize multiple revenue streams strengthen their file. A consultant with three clients beats someone earning the same amount from one contract. Lenders view diversified income as lower risk.
Timing matters for Sonoma's seasonal workers. Apply after harvest season when your bank statements show peak deposits. A file submitted in October qualifies differently than the same borrower in March with lighter cash flow.
Bank statement loans offer an alternative if your 1099 income fluctuates wildly. They average 12-24 months of deposits regardless of source. Profit and loss statement loans work when you have consistent contracts but haven't filed two years of taxes yet.
Asset depletion loans make sense for semi-retired contractors with significant investment accounts. We've closed deals where someone earns $60K annually but qualifies for $800K based on a $2M portfolio.
Sonoma's property types affect program availability. A downtown condo carries different requirements than a rural vineyard property. Lenders tighten guidelines on land parcels over five acres or properties with commercial wine production potential.
Wine Country HOA fees run higher than county averages. We've seen $400-$800 monthly dues that compress debt ratios. Make sure your lender calculates HOA costs correctly or you'll hit surprises at final underwriting.
Some lenders accept 12 months if you worked W-2 in the same field previously. Expect higher rates and larger down payments with shorter income history.
Not if you show consistent seasonal patterns across two years. Lenders expect harvest workers and tourism contractors to have predictable income cycles.
Most average your gross 1099 receipts over 12-24 months. Some apply a 10-25% expense factor depending on your industry and business structure.
Blended income strengthens your file. Lenders combine both sources when the 1099 work is in a related field or shows two-year history.
Expect rates 0.5-2% above conventional programs. Rates vary by borrower profile and market conditions based on credit score, down payment, and income stability.
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.