The Situation
A freelance UX designer earning $105K/year on 1099 income came to me frustrated. She had great credit (740), solid savings ($60K), but two lenders had rejected her because '1099 income is too risky.' She was about to give up on buying.
What Programs Were Available?
After reviewing their full financial picture, here's what they qualified for:
- FHA: Min credit 580, 3.5% min down, PMI required
- Conventional: Min credit 620, 3% min down, PMI required
How We Solved It
1099 income isn't a death sentence — it just requires 2 years of documented history. She had 3 years of consistent 1099s showing steady growth.
We went Conventional (not Bank Statement) because her credit was strong enough and conventional rates are lower. The key: her tax returns showed enough income after deductions to qualify.
With $60K down on a $400K home (15% down), we got her a strong rate. PMI was minimal at 15% LTV and drops off entirely at 20%.
The Result
Approved for Conventional financing at 6.375%. Closed in 30 days. Monthly payment: $2,650.
Key Takeaway
If you're a 1099 contractor or gig worker: keep 2+ years of consistent 1099s, file your taxes on time, and don't over-deduct to zero. A good loan officer knows how to work with 1099 income — you just need someone who won't give up after the first calculator run.
Think You Might Be in a Similar Situation?
Every borrower's scenario is different, but the process is the same: we look at your full picture, find the right program, and create a plan. Whether it's credit repair, down payment assistance, or a specialized loan program — there's usually a path.
Schedule a free consultation to see what you qualify for. No obligation, no pressure — just honest answers about your options.
Contact Aditya Choksi | NMLS #2055084 | (949) 478-7641
This scenario is based on a real borrower situation. Names, exact figures, and identifying details have been changed to protect privacy. Your qualification depends on your specific financial situation.