Question 1

Do I need two years of tax returns for a 1099 loan?

Accepted Answer

No. Most 1099 programs skip tax returns entirely. You provide 1099 forms showing gross income, and the lender applies an industry expense ratio to calculate qualifying income.

Question 2

What credit score do I need for a 1099 loan in Turlock?

Accepted Answer

Most lenders want 600 minimum, though 640+ gets better rates. Higher down payments can offset lower credit scores in some programs.

Question 3

Can I use 1099 income from multiple clients?

Accepted Answer

Yes. Lenders total your 1099s from all sources. Consistent income across 12-24 months from the same industry or business type works best for qualification.

Question 4

How do lenders calculate my income from 1099 forms?

Accepted Answer

They average your gross 1099 amounts over 12-24 months, then subtract an expense percentage based on your industry. Contractors typically see 40-50% expense assumptions.

Question 5

What down payment do I need for a 1099 loan?

Accepted Answer

Expect 10-20% down for most programs. Loan amounts under $500K may qualify with 10% down if credit is strong. Jumbo amounts need 20-25% down.

1099 Loans for Self-Employed Borrowers in Turlock, CA