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Modesto has a strong base of self-employed workers, contractors, and gig earners. Traditional loans ignore how these borrowers actually get paid.
1099 loans use your actual contractor income — not a W-2 — to qualify. That changes everything for freelancers buying in Stanislaus County.
620+
Min Credit Score
2 Years
Income History Needed
No
W-2 Required
200+ Wholesale
Lender Network
Non-QM
Loan Type
1099 Loans in Modesto
Most lenders want 2 years of 1099 income history. You'll show that with your 1099 forms and sometimes a CPA letter confirming your work.
Credit requirements vary by lender, but most programs start around 620. Stronger credit gets you better pricing across our wholesale network.
Local decision guide
Use this guide to connect 1099 loans eligibility, lender expectations, and local market factors before comparing payment options in Modesto.
Modesto has a strong base of self-employed workers, contractors, and gig earners. Traditional loans ignore how these borrowers actually get paid.
1099 loans use your actual contractor income — not a W-2 — to qualify. That changes everything for freelancers buying in Stanislaus County.
Most lenders want 2 years of 1099 income history. You'll show that with your 1099 forms and sometimes a CPA letter confirming your work.
Retail banks rarely touch 1099 loans. They want W-2s and tax returns that show taxable income — which kills most contractor applications.
We work with 200+ wholesale lenders who offer non-QM programs built specifically for 1099 earners. That gives you real options, not a polite rejection.
The biggest mistake 1099 borrowers make is writing off too much income on taxes. Low taxable income sinks a conventional approval fast.
With a 1099 loan, lenders use your gross 1099 income — not what's left after deductions. That's the key difference from a standard tax-return review.
Bank statement loans are a close alternative. They average 12-24 months of deposits instead of using 1099 forms directly.
If your income mixes 1099 and business deposits, a P&L loan might fit better. We run both scenarios and show you where you qualify strongest.
Stanislaus County has a large agricultural and logistics workforce. Many of these workers earn 1099 income from seasonal or contract arrangements.
Modesto home prices are lower than coastal California, which helps 1099 borrowers qualify with less income. Down payment requirements still apply.
Some lenders allow one year, but two is the standard. A strong credit profile and low debt ratio help your case with one-year files.
Not always. Many non-QM lenders skip tax returns entirely. They use your 1099 forms and sometimes a CPA letter instead.
Most programs start at 620. Higher scores, often 680 and above, open better rates and lower down payment options.
Loan limits depend on your income, credit, and the lender's program caps. Non-QM loans can go into jumbo territory when income supports it.
Not the way they'd hurt a conventional loan. Lenders use gross 1099 income, so large write-offs matter less here.
A 1099 loan uses your contractor income forms directly. A bank statement loan averages your monthly deposits instead. Both are non-QM options.