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I am a 1099 contractor for a design company. Will it be difficult for me to get a loan based on the fact that my income is sporadic?

by michael998 from Maple View, New York. Mar 15th 2016 Reply


Larry Gray (lgray_312_247)
#4 ranked lender in California - 1,127 contributions

There are options in recent times for one who is self employed that were not available a few years ago. Consult with a mortgage broker licensed in New York.That person should have options from averaging out your income over a two year period to using bank statements instead of net income from federal tax returns to qualify you. Reserves (cash, stocks, bonds, etc) could be used to count towards monthly qualifying income as well.

Mar 15th 2016
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,797 contributions

So long as you have been 1099 for 2 or more years and show a profit, then you should be ok.. the lender will take an average of 2 years to determine your monthly income.. if your year over year income has decreased, they will use the lower year.. if your year over year income has increased, they will use the average monthly for 2 years.. So long as you show enough income to service your debt including the new housing payment, and you meet all other eligibility requirements, you should be ok.. if you want to know for sure, then try contacting a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Mar 15th 2016
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