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Woodland sits at the edge of Sacramento's growing economy. Freelancers and contractors here are buying homes — but standard loans keep blocking them.
1099 earners don't fit the W-2 mold lenders love. That's not a credit problem. It's a documentation problem, and it's solvable.
620+
Min Credit Score
2 Years of 1099s
Income Docs
10-20%
Min Down Payment
Non-QM
Loan Type
2 Years Typical
Self-Employment History
1099 Loans in Woodland
Lenders use your 1099 forms — not your tax returns — to calculate income. This matters because write-offs that shrink your taxable income won't kill your loan.
Most lenders want 2 years of 1099s, a credit score of 620 or higher, and 10-20% down. Self-employed borrowers with strong income history qualify regularly.
Local decision guide
Use this guide to connect 1099 loans eligibility, lender expectations, and local market factors before comparing payment options in Woodland.
Woodland sits at the edge of Sacramento's growing economy. Freelancers and contractors here are buying homes — but standard loans keep blocking them.
1099 earners don't fit the W-2 mold lenders love. That's not a credit problem. It's a documentation problem, and it's solvable.
Lenders use your 1099 forms — not your tax returns — to calculate income. This matters because write-offs that shrink your taxable income won't kill your loan.
Most retail banks don't offer 1099 loans. They're a non-QM product — meaning they fall outside Fannie Mae and Freddie Mac guidelines.
We work with 200+ wholesale lenders who actively fund 1099 loans. Rates vary by lender, and so do income calculation methods. Shopping matters here.
The most common mistake: contractors submit tax returns showing $40K after deductions, then wonder why they don't qualify for a $500K home.
With a 1099 loan, we use gross 1099 income before write-offs. A contractor earning $120K on paper but showing $38K taxable can still qualify — if we use the right product.
Bank Statement Loans use 12-24 months of deposits instead of 1099s. If your income flows through a business account, that may be a stronger path.
P&L Loans work for contractors with a CPA who can document income accurately. Each option fits a different income profile — one size doesn't fit all here.
Woodland's proximity to Sacramento draws contractors in tech, construction, agriculture, and healthcare. That's exactly who 1099 loans are built for.
Yolo County's housing market is competitive enough that non-QM buyers need to be pre-approved and move fast. Getting your 1099 loan dialed in early is critical.
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.
No. Sole proprietors qualify. You just need documented 1099 income and a history of consistent self-employment.
Lenders typically average your last 2 years of 1099 income at gross — before deductions. That's the key difference from a conventional loan.
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.
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.
Yes, some lenders go down to 10% on 1099 loans. Expect stricter credit requirements at lower down payment levels.