When analyzing 1099 income for a borrower who has been receiving this type of income for 18 months, what documentation is typically required?
Correct Answer
C) 1099 forms for the period received and a CPA letter confirming continuance
For 1099 income with less than two years history, lenders typically require the 1099 forms for the period the income has been received, plus documentation from a CPA or the income source confirming the likelihood of continued receipt of the income.
Why This Is the Correct Answer
For 1099 income with less than two years history, lenders typically require the 1099 forms for the period the income has been received, plus documentation from a CPA or the income source confirming the likelihood of continued receipt of the income.
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