Question 1

Can I use 1099 income from multiple clients?

Accepted Answer

Yes, lenders combine all your 1099 income sources. Diversified income across 3-5 clients often strengthens your application versus dependence on a single client.

Question 2

What if I only have 12 months of 1099 history?

Accepted Answer

Some lenders accept 12 months but charge higher rates. Two years of history qualifies you for standard pricing and better loan terms.

Question 3

Do lenders verify income with my clients?

Accepted Answer

Most lenders verify 1099 forms through IRS transcripts rather than contacting clients. They match your provided forms against tax filings to confirm accuracy.

Question 4

How do gaps in 1099 income affect approval?

Accepted Answer

Short gaps under 60 days rarely matter if your overall income trend is stable. Longer gaps require written explanation and may reduce your qualifying income.

Question 5

Can I buy investment property with a 1099 loan?

Accepted Answer

Yes, many 1099 loan programs work for investment properties. Expect 20-25% down and slightly higher rates than primary residence purchases.

1099 Loans in Fillmore: Financing for Self-Employed and Independent Contractors