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1099 Loans

What Is a 1099 Loan?

If you’re paid as an independent contractor or freelancer, qualifying for a traditional mortgage can be challenging — even with strong income. 1099 loans are designed specifically for self-employed and contract workers, allowing you to qualify using your 1099 income instead of traditional tax returns or W-2s.

These loans provide a flexible path to homeownership for entrepreneurs, consultants, gig workers, and professionals whose income doesn’t fit into standard lending boxes.

A 1099 loan is a non-traditional mortgage program that uses your 1099 income forms — typically from the past one or two years — to verify earnings rather than relying on tax returns that may show reduced income due to write-offs.

Lenders review your 1099 history and average your income to determine your qualifying amount, making this a simpler and more accurate option for many contract workers.

Key Benefits of 1099 Loans

  • No personal tax returns required
  • More flexible credit guidelines, including higher debt-to-income allowances
  • Available for primary residences, second homes, and investment properties
  • Gift funds allowed for down payment and closing costs
  • Higher approval rates compared to conventional loans
  • Flexible credit guidelines

Who Are 1099 Loans Best For?

1099 loans are a great fit if you:

  • Are paid as an independent contracto
  • Buyers with credit challenges or limited credit histor
  • Those with limited savings for a down payment
  • Borrowers recovering from past financial hardships
  • Want a simpler way to qualify for a mortgage

Basic Qualification Guidelines

While guidelines vary by lender, most bank statement loan programs require

1–2 years of 1099 income history

Stable or increasing earnings

A minimum credit score (often 620+)

Down payment typically between 10%–20%

Adequate cash reserves

Is a 1099 Loan Right for You?

If you earn good money as an independent contractor but your tax returns don’t reflect your full income, a 1099 loan can give you a practical, flexible path to homeownership — without unnecessary paperwork.