I’m Michael DiVita — DRE #01372066 | NMLS #241655, DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. I’ve been in California mortgage lending since 2000 and founded DiVita Home Finance in 2007. Bay Area tech contractors are one of my most common borrower profiles — I know exactly which programs and lenders work best for 1099 and W-2-to-contractor transitions. Call (800) 239-1103.
The Bay Area and Silicon Valley are home to tens of thousands of software engineers, data scientists, product managers, and IT professionals who work as independent contractors rather than full-time employees. Contract tech work pays exceptionally well — but it creates a unique mortgage challenge when conventional lenders see 1099 income and no W-2.
The Tech Contractor Mortgage Challenge
Technology contractors in California often earn $200,000 to $400,000 or more in annual contracting income. But without a W-2 or pay stubs, conventional lenders struggle to document and verify that income under standard guidelines. Add in the deductions common to tech contractors — home office, equipment, software licenses, professional development — and the tax return income is often well below actual earnings. The result: a borrower who can comfortably afford a $1.5M mortgage gets declined by a conventional lender looking at a Schedule C showing $95,000.
The W-2 to 1099 Transition
One of the most common scenarios I see: a software engineer leaves a FAANG company after years of W-2 employment and goes independent. They earn more money than ever — but their mortgage application is suddenly harder because they no longer have the W-2 that conventional lenders rely on. The good news: this transition scenario is actually favorable for non-QM lenders. A long history in a stable, high-paying industry combined with strong 1099 earnings is exactly what these programs are built for.
Best Programs for Tech Contractors
A 1099 loan is usually the fastest path if you receive 1099s from contracting firms, staffing agencies, or direct clients. One or two years of 1099 income qualifies you on gross earnings before deductions — no Schedule C write-offs reducing your qualifying income. A bank statement loan works well for contractors billing through their own LLC or S-corp, averaging 12 or 24 months of business deposits into qualifying income. For contractors who have recently transitioned from W-2 and have both income types, I model both programs and compare. See: 1099 loan details | Bank statement loan details.
Bay Area Loan Amounts
Bay Area tech contractor mortgages routinely exceed $2 million — San Mateo County, Santa Clara County, San Francisco, and Marin all have purchase prices that require jumbo non-QM financing. Non-QM lenders are active and comfortable in the jumbo space for tech contractor borrowers; this is a well-understood borrower profile in the Bay Area market.
Frequently Asked Questions — Tech Contractor Mortgage California
Can I get a mortgage as a tech contractor in California if I just went from W-2 to 1099?
Yes — and the transition is more workable than many contractors expect. A 1099 loan qualifies you on your actual contract income (gross 1099 earnings before deductions) with as little as 12 months of 1099 history with some lenders. Your years of W-2 employment in the same field actually strengthen the file — it demonstrates stable career history and industry expertise. The main requirements are 12–24 months of documented 1099 income, a 620+ credit score, and at least 10% down payment. Bay Area tech contractors with strong deposit history can also use bank statement loans averaging their actual cash deposits.
How is 1099 income calculated for a tech contractor mortgage?
On a 1099 loan, the lender uses your gross 1099 earnings — the total on your 1099 forms before any deductions — averaged over 12 or 24 months. If your 1099s show $360,000 over 12 months, that’s $30,000/month qualifying income regardless of what your Schedule C shows after deductions. This is the core advantage of a 1099 loan over a conventional loan for tech contractors: your write-offs don’t reduce your qualifying income. Different lenders may average 12 or 24 months, so timing matters if your income has grown significantly in the most recent year.
What Bay Area loan amounts are available for tech contractors?
Most 1099 and bank statement lenders I work with offer loan amounts up to $3 million, with some programs available above $3M for strong-profile borrowers. In Bay Area markets — where tech contractors are often targeting purchases in the $1.5M–$3M range in San Mateo, Santa Clara, Marin, and San Francisco — these programs are well-suited to the purchase price environment. The 2026 conforming limit for high-cost Bay Area counties ranges from $1,209,750 to $1,249,125, meaning most target purchases are jumbo. Non-QM lenders operate comfortably in this range for tech contractor borrowers.
Related: Self-employed mortgage hub | 1099 loans | Bank statement loans
Talk to Michael Directly
DiVita Home Finance | Tiburon, CA | In lending since 2000, founded DiVita Home Finance in 2007. Michael DiVita DRE #01372066 | NMLS #241655. Company DRE #01818285 | NMLS #323700.
💬 Text: (310) 849-9124
