Question 1

Can I use 1099 income from multiple clients to qualify?

Accepted Answer

Yes, as long as all clients are in the same or related industries and you've worked with them for at least 12 months. Mixing unrelated contract work complicates approval.

Question 2

Do lenders verify my 1099 income directly with clients?

Accepted Answer

Most lenders verify through tax transcripts and signed 1099 forms. Some call clients to confirm ongoing contracts, especially for self-employed ag workers with seasonal income patterns.

Question 3

What happens if my 1099 income dropped last year?

Accepted Answer

Lenders average the most recent 12-24 months. One down year doesn't kill your file if you can document why it happened and show recovery in recent months.

Question 4

Can I buy investment property with a 1099 loan in Live Oak?

Accepted Answer

Yes, but expect 20-25% down and higher rates than primary residence loans. Lenders price in extra risk when combining self-employment and rental property.

Question 5

How do 1099 loans handle seasonal ag income?

Accepted Answer

Lenders accept seasonal patterns if you show consistent annual totals. Document contracts for the upcoming season to prove income will continue beyond the slow months.

1099 Loans in Live Oak: Mortgages Built for Independent Contractors