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Refinance advice for 1099 workers

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  • Refinance advice for 1099 workers

    My wife and I are looking at refinancing our student loans soon. We both graduated fairly recently and work different part time jobs, so it is a somewhat unique situation income wise. I have a part time W2 job that pays around 125K, a 1099 job that will probably earn about 120K, and she has a part time 1099 job that will probably earn around 120K (but she is currently on maternity leave). Both of our contract jobs are EWYK, so we are still filling the pipeline so to speak so those income streams are still building (but will likely reach those estimates conservatively for 2022).

    I haven't started getting quotes from various companies, but wondered if anyone had any advice or companies that were more favorable when considering 1099 income. I have heard that for mortgage companies you generally have to have 2 years of income data. I didn't know if this was the case for student loan refinancing as well, since I am guessing the higher the income, the better the rate.

    Thanks in advance for any advice! I tried searching but couldnt find much information specifically about this.

  • #2
    The two (2) year requirement for mortgages are Fannie Mae and Freddie Mac underwriting guidelines. If you are able to find a portfolio loan not underwritten from one of those two, you can get a mortgage with less.

    I am not well versed with student loan underwriting. So I don't know if similar underwriting considerations apply.


    • #3
      Student Loan refinance experience:
      #1: 2 years tax returns from residency and contract. Only counted guaranteed base, no bonus or call pay anticipated, even with a contract requirement for call with stated pay.
      #2. 2 years tax returns (one transition year and other full year) plus last YTD pay stub. Again, bonus and supplement not yet paid were disregarded.
      All were w-2 earnings. The point was documention focused on the past, not the future. You will need to upload something with one of the required documents. Otherwise, the underwriter will never see your story.
      The only answer is each lender and underwriter makes their own choices.
      Note: 2 years documents does not mean the same job or employer. Tax returns count.