“Lenders only look at my tax return.”
Your 1099s Can Do The Work
A 1099 only loan qualifies you on what your clients paid you, not your taxable income.
If you’re a contractor, agent, or commission earner, your tax return probably shows a lot less than you made after write offs. A 1099 only loan qualifies you on your 1099s instead, so you buy based on your real income.
A 1099 only loan is a non QM mortgage for independent contractors and commission earners that uses your 1099 forms to document income instead of full tax returns. The lender looks at what your 1099s show you were paid, so the write offs on your return don't shrink your qualifying income.
It's built for people who get paid on a 1099 instead of a W2: independent contractors, real estate agents, commission only salespeople, travel nurses, truck drivers, and freelancers. Instead of reading your tax returns, the lender reviews one or two years of 1099s and confirms your current income with year to date proof, usually recent bank statements.
Some lenders use the gross amount on your 1099s, and others take out an expense factor for business costs. You'll still need good credit, a down payment, and reserves, and most lenders want two years in the same line of work. It's a non QM loan, so rates run higher than conventional, and every lender prices it a little differently.
A 1099 only loan makes sense when your 1099s show solid income but your tax returns don't, because of the expenses you write off. If your accountant is doing their job, your taxable income is lower than what you were actually paid, and a conventional loan only sees that lower number.
It's also simpler than a bank statement loan when your income comes from a handful of clients or one main company. Your 1099s tell the story directly, without digging through months of deposits.
If your tax returns already show enough income, a conventional loan will usually cost less, so we check that first. And if your income comes in from many sources and isn't all on 1099s, a bank statement loan may fit better.
“Lenders only look at my tax return.”
A 1099 only loan qualifies you on what your clients paid you, not your taxable income.
“I need two years of W2 jobs to buy.”
With two years in the same line of work, 1099 income can qualify on its own.
“Write offs mean I can’t qualify.”
You don’t have to pay more in taxes to buy a house.
Here’s the math on an example with $96,000 in 1099 income and a 10% expense factor.
Example only. Some lenders use the gross 1099 amount, and the expense factor varies by lender.
Three ways a self employed borrower can qualify.
Handle these before you shop.
Pull the last one or two years from every company that paid you.
Recent bank statements prove your income is still coming in.
Business and personal deposits that are easy to follow help the review.
If your returns already show enough income, conventional may cost less.
Here’s exactly what happens after you reach out.
Tell us the price range you’re shopping, your credit range, and how much you have saved. We start with a soft credit check, so your score isn’t touched.
Start My Pre-ApprovalSend your pay stubs, W2s, and bank statements. We compare your loan options side by side and send a letter with your max price to hand your Realtor.
Start My Pre-ApprovalOnce you’re under contract, we order the appraisal, work with title, and take your file through underwriting to closing day.
Start My Pre-Approval
A 1099 only loan is a non QM mortgage for independent contractors and commission earners that uses your 1099 forms to document income instead of full tax returns. The lender looks at what your 1099s show you were paid, so the write offs on your return don't shrink your qualifying income.
Independent contractors, freelancers, real estate agents, commission only salespeople, and other workers paid on a 1099, usually with at least two years in the same line of work.
Most lenders ask for one or two years of 1099s, plus proof of year to date income, like recent bank statements or a written verification.
The lender starts with the total on your 1099s. Some apply an expense factor to account for business costs, and others use the gross amount. The method depends on the lender, which is why shopping several matters.
It varies by lender, credit, and property, but many 1099 programs start around 10% down for a primary home with good credit. Investment properties usually need more.
No. That's the point of the program. Your 1099s replace your tax returns as the income documentation.
Usually, yes. They typically run higher than conventional rates. Stronger credit and a larger down payment help.
That's common. Depending on the lender, your W2 income can be documented the standard way and your 1099 income added on top.
Yes. If your tax returns later show enough income, you can refinance into a conventional loan to get a lower rate.
These are the loans self employed borrowers compare it with.
Qualify on 12 or 24 months of deposits instead of tax returns.
Learn More Self EmployedQualify with a profit and loss statement from your CPA.
Learn More Non QMLoans built for borrowers outside the standard box.
Learn More InvestorQualify a rental on its rent instead of your income.
Learn More BuyThe lowest cost option when your returns show your income.
Learn More BuyKnow your number before you shop.
Learn MoreFifteen minutes gets you a real number instead of a guess, and the soft credit check costs your score nothing.
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