1099 Loan
A 1099 Loan is a mortgage program designed for independent contractors and self‑employed borrowers who receive 1099 income instead of W‑2s. Instead of tax returns, lenders use 12–24 months of 1099 forms and matching bank deposits to calculate qualifying income.
Overview
A 1099 Loan allows borrowers to qualify using their gross 1099 income. Lenders review your annual 1099 forms and verify that deposits match. No tax returns or pay stubs are required.
Who This Loan Is For
- Independent contractors
- Freelancers
- Gig‑economy workers
- Commission‑based workers
- Self‑employed borrowers with 1099 income
- Borrowers with large write‑offs on tax returns
How Income Is Calculated
- Lenders total your 1099 income for the year
- Some lenders apply a 10%–20% expense factor
- Bank deposits must support the income shown
- No tax returns required
- No profit‑and‑loss statements required
Basic Requirements
- 620+ credit score
- 10%–20% down payment
- 12–24 months of 1099s
- Consistent deposit history
- Proof of ongoing contract work
- Cash reserves may be required
Property Types Allowed
- Primary homes
- Second homes
- Investment properties
- Single‑family homes
- Condos and townhomes
- 2–4 unit properties
Benefits
- No tax returns needed
- Fast approvals
- Ideal for contractors and freelancers
- Flexible income calculations
- Great for borrowers with write‑offs
- Works for primary, second, and investment properties
Next Steps
If you earn 1099 income and traditional tax documents don’t reflect your true earnings, a 1099 Loan may be the best option. Gather your 1099 forms, review your deposits, and compare lender programs before applying.
Ready to see your loan options? Start below — fast, secure, and no credit impact.