Home Loans
1099 Income Loan
Mortgage financing designed for independent contractors, freelancers, and gig economy professionals.
Overview
What Is a 1099 Income Loan?
A 1099 income loan is a non-QM mortgage product built specifically for workers who receive 1099 tax forms instead of W-2s. Independent contractors, rideshare drivers, consultants, and gig workers often face challenges qualifying for traditional mortgages because their income doesnu2019t fit the standard W-2 mold. This program uses your 1099 earnings and current contracts to establish qualifying income, bypassing the rigid documentation requirements of conventional loans.
Key Benefits
Why Choose This Program?
- ✓ No W-2 income required
- ✓ Qualify using 1099 forms and current contracts
- ✓ Available for primary and secondary residences
- ✓ Down payment starting at 10%
- ✓ Flexible debt-to-income guidelines
- ✓ Fast approval process
Requirements
What You’ll Need
- ✓ Minimum credit score: 620
- ✓ 1-2 years of 1099 income history
- ✓ Current contracts or proof of ongoing work
- ✓ Down payment typically 10-15%
- ✓ Personal bank statements for reserves
- ✓ Valid business or independent contractor status
Who Should Choose This Loan?
Is a 1099 Income Loan Right for You?
- ✓ Independent contractors and sole proprietors
- ✓ Freelancers with steady but non-traditional income
- ✓ Gig economy workers (rideshare, delivery, consulting)
- ✓ Borrowers whose 1099 income tells a stronger story than tax returns
Frequently Asked Questions
1099 Income Loan FAQ
How is 1099 income calculated for qualification?
Lenders typically average your 1099 income over the past 12-24 months. They may also consider current active contracts and future projected earnings from signed agreements.
How is this different from a bank statement mortgage?
A bank statement mortgage analyzes your deposit history to derive income. A 1099 loan uses your 1099 tax forms and contracts directly. The right choice depends on whether your bank deposits or 1099 forms better represent your earnings.
What if I have both W-2 and 1099 income?
Thatu2019s perfectly fine. Many borrowers have mixed income sources. Lenders will combine your W-2 earnings with your 1099 income, or focus on whichever gives you a stronger qualification profile.
Can I buy an investment property with a 1099 loan?
While primarily designed for primary residences, some lenders offer 1099 programs for investment properties as well. Talk to your loan officer about available options.
Not sure if this is the right program for you? Compare all loan programs u2192
Ready for a 1099 Income Loan?
Get a personalized rate quote and see how much you qualify for.