Why Consider a 1099 Loan?
1099 mortgage loans can open the door for self-employed borrowers who face challenges qualifying through traditional programs. Key benefits may include:
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No tax returns or W-2s required
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Qualify using 1099 forms and/or supporting bank statements
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Ideal for freelancers, consultants, and gig economy workers
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Options for home purchase, refinance, or cash-out
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May allow higher qualifying income by excluding deductions
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Streamlined process with reduced paperwork
General 1099 Loan Requirements
While eligibility can vary depending on the lender, here are some general factors that are typically considered:
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Consistent 1099 income over the past one to two years
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Verification through 1099 forms, and in some cases, bank statements
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Satisfactory credit and financial history
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Available for primary residences, second homes, and investment properties
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Applicable to a variety of home types, including condos and multi-unit residences
Who Might Benefit From a 1099 Mortgage?
These loans are often a great fit for:
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Real estate agents, consultants, and independent contractors
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Freelancers in creative or digital industries
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Rideshare and delivery drivers
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Commission-based professionals without traditional employment records
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Anyone receiving consistent 1099 income who needs a flexible loan solution
If your income is strong but doesn’t fit into a traditional box, a 1099 loan might be the right option for your home financing journey.
Understanding the 1099 Loan and Who It’s For
How Income Is Calculated
- Lenders average your 1099 income over the past 12–24 months
- If using business accounts, an expense factor may be applied
- Some programs allow bank statements to supplement 1099 income
- No need for a full tax return review
Who Is This Loan For
- Real estate agents, consultants, contractors, and freelancers
- Rideshare or delivery drivers (Uber, Lyft, DoorDash, etc.)
- Creatives such as designers, photographers, artists, and writers
- Commission-based earners without W-2s
- Anyone with steady 1099 income who struggles to qualify traditionally
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