1099 mortgage confusion.

[schoolofhardknocks]

I frequent Broker Outpost as well. Here's the answer: If the borrower just switched to 1099 from a W-2, he will need two years of 1099 experience, especially for a 10% down program. The only way he can get funded otherwise is through hard money, but they typically require 30% down.

This subject has been beaten to death on BO.

P.S., if he has worked as a 1099 employee in the past and can show a total history of 2 years as a 1099 employee, then he has a chance.

[SmartMoney]

Vinny and DrD - look around for portfolio lenders. If you are doing the exact same work for the very same people and the only difference is 1099 vs W2, we do these all day long. One tax return is needed showing 12 months of 1099 to see how you are writing off expenses. That said, it would have to be a minimum of 10% down (80/10/10) because mortgage insurance underwrites to agency guidelines. Credit would need to be excellent. Reserves definitely need to be present.