Just switched to 1099 Contractor: How tough is it to get a loan now?

Keep in mind the tax implications of switching from W2 to 1099. Self-employment taxes plus income tax can significantly affect your take-home pay, even with deductions.

Some lenders are flexible with one year of self-employment if it’s in the same line of work. It’s worth discussing with potential lenders to see if this could apply to you.