Question 1

Can I use one year of 1099s to qualify?

Accepted Answer

Some lenders allow it with strong compensating factors. Two years is the standard, but exceptions exist for borrowers with clean credit and larger down payments.

Question 2

Do I need to be incorporated to get a 1099 loan in Woodland?

Accepted Answer

No. Sole proprietors qualify. You just need documented 1099 income and a history of consistent self-employment.

Question 3

How is my income calculated on a 1099 loan?

Accepted Answer

Lenders typically average your last 2 years of 1099 income at gross — before deductions. That's the key difference from a conventional loan.

Question 4

Are 1099 loan rates higher than conventional rates?

Accepted Answer

Generally yes. Non-QM products carry more lender risk. Rates vary by borrower profile and market conditions, but stronger credit and larger down payments help.

Question 5

What if my 1099 income is inconsistent year to year?

Accepted Answer

Lenders will average the two years. A sharp income drop in year two is a red flag — some lenders will decline or reduce the qualifying amount.

Question 6

Can I buy in Woodland with a 1099 loan and 10% down?

Accepted Answer

Yes, some lenders go down to 10% on 1099 loans. Expect stricter credit requirements at lower down payment levels.

1099 Loans in Woodland, CA for Independent Contractors