1099-Only Mortgage
1099-Only Mortgage
Buy or refinance a home using just your 1099 forms — no W-2s or tax returns required.
If you’re self-employed, a freelancer, or an independent contractor, a 1099-only mortgage can help you qualify based on your actual income — without the headaches of traditional full-doc loans. Lenders use your 1099s as proof of income instead of your tax filings or pay stubs.
What Is a 1099-Only Mortgage?
A 1099-only mortgage is a non-QM (non-qualified mortgage) loan designed for independent workers who receive IRS Form 1099 instead of W-2s.
Instead of using tax returns or profit-and-loss statements, the lender uses your recent 1099 forms (typically from the past 1–2 years) to calculate your qualifying income.
This loan is especially useful if your tax filings show a lower net income due to deductions or write-offs — a common situation for self-employed individuals.
Who Should Use a 1099-Only Mortgage?
1099 loans are popular with:
- Freelancers and independent contractors
- Gig workers (Uber, DoorDash, etc.)
- Real estate agents, consultants, and creatives
- Self-employed professionals with tax write-offs
- Commission-based workers who get 1099s from multiple clients
- Anyone earning consistent income through 1099 forms
If your tax returns don’t reflect your real income, but your 1099s do, this loan can work for you.
Key Benefits of 1099-Only Mortgages
- No tax returns or W-2s required
- Qualify using one or two years of 1099 income
- Ideal for self-employed or gig economy workers
- More flexible underwriting than conventional loans
- Can be used for primary homes, second homes, and some investment properties
- Faster approval when documents are limited to 1099s
1099 Loan Requirements
- 1099 Income – Typically one or two years of 1099s showing consistent income
- Credit Score – Minimum score varies by lender (usually 620–660+)
- Income Consistency – Lenders want to see steady or growing earnings
- Bank Statements (optional) – Some lenders may ask for recent bank statements to support cash flow
- Down Payment – Often 10–20% or more depending on the property type and credit
- DTI (Debt-to-Income Ratio) – Based on gross 1099 income; usually capped at 45–50%
- Appraisal – Required for all purchases and refinances
Underwriting guidelines vary — consult a loan officer for specifics.
FAQ
It’s a home loan that uses your IRS 1099 income as the primary method of qualifying — without needing W-2s or full tax returns.
Many lenders prefer two years of 1099s, but some may accept just one if your income is stable and strong.
Yes. As long as your total income from 1099s is consistent and meets lender requirements, you can qualify.
Possibly. Some lenders ask for a few months of business or personal bank statements to support your 1099 income.
Most lenders look for at least a 620–660 credit score, though stronger credit may improve your terms.
Absolutely. You can refinance an existing mortgage or take cash out using a 1099-only loan.
