Self-Employed Lending
1099 Loans: Mortgage Solutions for Independent Contractors
You work hard and earn well — but your tax return doesn't show it. 1099 loans let you qualify using your actual 1099 income, not what's left after deductions.
Talk To An ExpertWhat Is a 1099 Loan?
A 1099 loan is a non-QM mortgage program designed for self-employed borrowers, independent contractors, and gig economy workers who receive 1099 income instead of W-2 wages. Rather than using tax returns — which often show reduced income due to business deductions — lenders use your 1099 forms directly to calculate qualifying income.
Lenders typically average 12 or 24 months of 1099 income, then apply an expense factor to arrive at a qualifying income figure. This approach is far more favorable for contractors who write off significant business expenses.
12-Month 1099 Program
Use your most recent 12 months of 1099 income. Ideal for contractors with growing income who don't want older, lower-earning years to drag down their average.
24-Month 1099 Program
Average two years of 1099s for a more stable income picture. Often results in better rates and higher loan amounts for established contractors.
Who Qualifies for a 1099 Loan?
Built for the modern independent workforce
Independent Contractors
Consultants, IT professionals, and skilled tradespeople who work project-to-project.
Freelancers & Creatives
Designers, writers, photographers, and other creative professionals with variable income.
Gig Economy Workers
Uber, Lyft, DoorDash, and other platform workers with consistent 1099 earnings.
Commission-Based Earners
Real estate agents, insurance brokers, and sales professionals paid on commission.
Business Owners
Sole proprietors and single-member LLC owners who receive 1099 payments from clients.
Healthcare Contractors
Travel nurses, locum physicians, and other healthcare professionals on contract assignments.
How Is 1099 Income Calculated?
Gather Your 1099 Forms
Provide 12 or 24 months of 1099-MISC or 1099-NEC forms from all clients or platforms.
Apply the Expense Factor
Lenders apply a standard expense factor (typically 10–15%) to account for business costs, arriving at net qualifying income.
Calculate Monthly Income
Total 1099 income minus the expense factor, divided by 12 (or 24) months, gives your qualifying monthly income.
Determine Loan Amount
Your qualifying income is used to calculate your debt-to-income ratio and maximum loan amount — just like a traditional mortgage.
Loan Programs Available
- Primary residence, second home, and investment property purchases
- Cash-out and rate/term refinances
- Loan amounts up to $3 million
- Fixed and adjustable-rate mortgage options
- Minimum credit score of 620 (better rates at 680+)
- Down payments as low as 10% on primary residences
- Condos, single-family, and multi-unit properties eligible
Your 1099 Income Deserves a Real Mortgage
Stop letting your tax write-offs work against you. Let's find a loan program that reflects your true earning power.
Talk To An Expert