1099 Income Mortgage Programs
1099 loans qualify independent contractors, freelancers, and commission earners using their 1099 forms instead of full personal tax returns. If your income is real, there's a path to approval.
No obligation. No hard credit pull to get started. Answer Home Loans, Inc. NMLS #1729528
Why the number matters
ExampleIllustrative example only. Some lenders apply an expense factor to 1099 income. Qualifying income varies by lender.
Income documentation programs
The right program comes down to how long you've earned 1099 income and how much history you can document.
For borrowers with a more recent 1099 history. Qualification is based on your most recent 12 months of 1099 income, giving newer contractors and private-practice professionals a direct path to ownership.
Best for
Borrowers newer to contract or private-practice work, or who recently moved to 1099 income.
The standard path for established 1099 earners. Income is averaged across 24 months, which typically supports the most competitive pricing and the widest flexibility on credit and reserves.
Best for
Borrowers with two-plus years of consistent freelance, commission, or contract earnings.
Not sure which fits? Call 805-419-3319 and we'll review your history.
Actual terms, credit requirements, and reserve thresholds vary by lender and borrower profile. This is a general program comparison only.
The process
Collect 12 or 24 months of 1099 forms from all your income sources: clients, agencies, or platforms.
Your 1099 earnings are averaged over the documentation period. Tax-return write-offs don't reduce the figure, though some lenders apply a modest expense factor.
Receive your pre-approval and move toward closing with a lender that understands how independent professionals earn.
Eligible borrowers
Qualify on professional practice income and retainer-based 1099 earnings.
Multiple 1099 sources, project income, and client retainers averaged over your documentation period.
Commission income earned on 1099, averaged across your chosen documentation period.
Commission income that looks uneven on a tax return but is consistent on your 1099s.
Project fees and advisory retainers documented on 1099s and averaged into a clean qualifying income.
Load and route income paid on 1099 by carriers or brokers, qualified on what you actually earn.
Rideshare, delivery, and marketplace income reported on 1099-NEC or 1099-K.
Owner income paid on 1099, qualified on earnings rather than the after-deduction Schedule C number.
Our difference
Qualify on your actual 1099 earnings, not a tax-return number reduced by legitimate business write-offs. No amending, no restating.
Work with a broker who understands private-practice, freelance, and commission income, and which lenders handle it best.
We compare non-QM lenders for both the 12-month and 24-month programs, structured around your actual earnings history.
1099 mortgage loan key benefits
Designed for independent earners, removing the friction that keeps self-employed borrowers from conventional approval.
Qualify with your 1099 forms instead of tax returns, removing the biggest obstacle to conventional approval.
Jumbo loan amounts above conforming limits, into the $10M+ range for qualified borrowers, subject to lender guidelines.
Debt-to-income limits that account for how self-employed income actually flows.
Qualify with 12 months of 1099 income when your self-employment history is solid.
Non-QM doesn't mean non-competitive. Strong credit and reserves earn strong pricing.
Use 1099 income to buy a home, refinance, or tap equity. The same flexibility applies to every loan purpose.
FAQ
Qualify on your 1099 income, not a full tax return breakdown. Built for self-employed and contract workers.
Most 1099 income can qualify, including 1099-NEC (non-employee compensation), 1099-MISC, and 1099-K (payment card and third-party network transactions), depending on the lender. The income needs to be consistent, verifiable, and self-employment or contract based. W-2 wages aren't part of the 1099 calculation, though they may be considered alongside it.
There are two program tiers. The 12-month program uses your most recent 12 months of 1099 income and is designed for borrowers newer to contract work. The 24-month program averages 24 months and is the standard path for established 1099 earners, typically with the most competitive pricing and broadest flexibility. If you're unsure which applies, we can review your history and recommend one.
No. That's the defining feature of a 1099 loan. It's a non-QM program built to qualify you with 1099 forms instead of two years of full personal tax returns, so business deductions that reduce your taxable income don't reduce your qualifying income. Documentation requirements vary by lender, and we'll walk you through exactly what your file needs.
Because 1099 loans are non-QM, lenders evaluate your whole file rather than one fixed standard. A solid credit history is generally expected. Down payment depends on your overall file strength, the property type, and your documentation period, with the 24-month program typically supporting the most favorable terms. Reserve requirements scale with loan size. We can give you current guidance for your situation.
In many cases, yes. If you earn part of your income on a W-2 and the rest through 1099 work, both streams can often be considered. The 1099 portion is averaged over the documentation period, and W-2 income is added according to the lender's guidelines. If you have a mixed income profile, we'll assess how lenders are likely to treat your full picture.
1099 loans qualify independent contractors on 1099 earnings instead of tax returns, with terms that vary by lender and income history. Talk with a licensed mortgage broker to confirm the right fit.
See What I Qualify ForExample scenarios
Illustrative example, not an actual client.
A physical therapist opened a private practice about a year ago. A conventional lender looked at the tax return and said the income was too low. A 12-month 1099 program could qualify them on the most recent year of 1099 income instead.
Timelines, rates, and terms vary by lender and borrower profile.
Illustrative example, not an actual client.
A freelance designer with six years of 1099 income from multiple clients had write-offs that made the tax return show very little. A 24-month program could average gross 1099 income to establish qualifying income.
Timelines, rates, and terms vary by lender and borrower profile.
Illustrative example, not an actual client.
An insurance agent paid entirely in variable 1099 commissions saw lenders focus on the slow months. A 24-month program could average all commission income across two years for a clearer qualifying figure.
Timelines, rates, and terms vary by lender and borrower profile.
Get Your Answer Today
Fill out the short form and a loan officer will review your income type and documentation period to confirm whether the 12-month or 24-month program is the right path — and what that means for your qualification.