1099 Income Loans

The 1099 Income Loan is a Non-QM mortgage program tailored for independent contractors, freelancers, gig workers, and sales professionals who receive most or all of their income on IRS Form 1099 rather than W-2s.

What Is a 1099 Income Loan?

Instead of requiring tax returns or W-2s, lenders use 1099 forms (and sometimes bank statements) to verify income. This program is ideal for borrowers whose tax write-offs reduce taxable income but who still have strong actual cash flow.

How It Works

Eligibility: Borrowers earning income primarily through 1099 contracts.
Loan Amounts: $100K – $3M+.
Down Payment: Typically 10%–20%.
Credit Score Requirement: 620–660+ depending on lender.
Documentation: Last 1–2 years of 1099 forms (sometimes year-to-date bank statements too).
Property Types: Primary residences, second homes, and some investment properties.
Reserves: 3–6 months may be required.

Benefits

Qualify using 1099 income instead of W-2s or tax returns.
Ideal for independent contractors and self-employed workers.
More flexible underwriting than conventional loans.
Lower down payment options compared to other Non-QM loans.

Fun Facts & Insider Details

Gig Economy Growth: Popular among rideshare drivers, consultants, and online workers.
Write-Off Friendly: Helps those who deduct heavily on taxes still qualify for a mortgage.
Flexible Verification: Some lenders average two years of 1099 income, others may allow just one.
Hybrid Options: Can sometimes be combined with bank statement loans for stronger qualification.

Who Is the Best Candidate?

Independent contractors receiving 1099s.
Salespeople or consultants with commission income.
Gig workers with strong cash flow but limited W-2 income.
Borrowers with solid credit but unconventional income streams.

FAQs

Do I need two years of 1099s?

Some lenders require two years, but others allow one year if income is consistent.
Can I combine this with bank statements?

Yes. Many lenders allow hybrid documentation to strengthen applications.
Are rates higher than Conventional loans?

Yes, slightly higher, but they provide flexibility for non-traditional income earners.

Next Step

Apply Now

⚖️ Disclaimer: 1099 Income Loans are non-qualified mortgages and not federally backed. Loan approval depends on credit, income documentation, reserves, and lender guidelines.