1099 Loans

for Self-Employed Borrowers

1099 loan programs are designed for eligible self-employed or independent borrowers who receive 1099 income and may need an alternative way to document earnings outside traditional W-2 income.

This can be helpful when your income is primarily reported on 1099s and traditional tax-return or W-2 documentation does not fully reflect your current earnings.

1099 loan eligibility, income calculation methods, documentation requirements, down payment, reserves, and loan terms vary by lender and borrower scenario.

How 1099 Loans Work

1099 Income Review

The lender reviews eligible 1099 income and supporting documentation to evaluate your earnings and determine a qualifying monthly income.

Qualifying Income Calculation

The lender applies the program’s approved calculation method to determine how much of your 1099 income may be used for mortgage qualification.

Borrower & Property Review

Your credit, assets, reserves, property type, and overall loan structure are also reviewed to confirm the scenario meets program guidelines.

Loan Approval & Closing

Once the qualifying income, borrower profile, property, and loan structure meet the lender’s requirements, the loan can move toward closing.

1099 Loan Requirements

to Expect

1099 Income History

Lenders typically review a history of 1099 income to evaluate consistency, stability, and the borrower’s ability to continue earning.

Supporting Documentation

Depending on the program, additional documents may be required to verify income, employment history, business activity, or current earnings.

Credit, Assets & Reserves

The lender may review your credit profile, available assets, required reserves, and overall financial picture in addition to your 1099 income.

Property & Loan Guidelines

The property type, occupancy, loan amount, appraisal, and overall transaction must meet the lender’s 1099 loan program requirements.

Is a 1099 loan right for you?

You earn good money, but your tax return doesn’t show it. Sound familiar? When you’re paid on a 1099, write-offs can shrink the income a traditional lender sees. A 1099 loan looks at what you actually bring in.

A good fit if you are:

A freelancer, consultant, or independent contractor
A real estate agent, gig worker, or commission-based professional
Someone who recently moved from W-2 to 1099 work
A buyer whose tax returns understate current earnings

Probably not the best fit if you:

Have steady W-2 income that already qualifies you comfortably
Have a very short or inconsistent 1099 history
Have credit scores below the program’s minimum

If you’re not sure which side you land on, that’s what the call is for. Some borrowers who don’t fit this program qualify for another one, like

bank statement loans or asset depletion loans.

What to have ready

1099 forms, typically for the past one to two years, depending on the program
Recent bank statements
A year-to-date income summary or profit and loss statement, if requested
Photo ID and basic information on your assets

What it looks like in real life (example for illustration only)

Maya is a freelance marketing consultant in Denver. She’s been independent for three years, and her 1099s show strong, steady income. After business write-offs, her tax return shows much less, and a traditional lender approved her for a fraction of the home she could afford. We reviewed her 1099 income and bank deposits under a 1099 program instead, and her qualifying income finally matched her real earnings. Every borrower’s numbers are different, and approval depends on the lender’s guidelines.

1099 loan FAQs

Can I get a mortgage with only 1099 income?
Yes. Many lenders offer programs for borrowers who are paid on 1099s. Requirements vary by lender.

How long do I need to be 1099 or self-employed?
It depends on the program. Many lenders want to see a history of 1099 income, often one to two years.

Do I need tax returns?
Some 1099 programs rely on 1099 forms and supporting documents instead of full tax returns. It depends on the lender and program.