1099 loans for independent contractors
Your 1099 income is real income. A 1099 mortgage lets you qualify using the forms your clients send you, with a set expense ratio, instead of the net income left after every deduction on your Schedule C.
Is this you?
- You're paid on a 1099 as a contractor, consultant, real estate agent, loan officer, or creator
- Your gross 1099 income is strong, but your tax return shows a much smaller net
- You have one or two main payers and steady work history in your field
- You don't want to wait another year of tax returns to buy
How qualifying works
The lender totals your 1099 income for the most recent one or two years and divides it by 12 (or 24) to reach a monthly figure.
Instead of subtracting every expense on your Schedule C, most 1099 programs apply a set expense ratio. Many lenders use a modest standard factor, and some go lower with a CPA letter.
The lender verifies the 1099s, often with a transcript or a letter from your payer, and confirms you're still working in the same line of work.
The resulting monthly income is used for your DTI calculation, just like a salary.
Illustration only. Expense ratios and documentation requirements vary by lender, and the result is subject to full underwriting.
Not sure this is the right program?We'll compare it against the others on your actual numbers.
Check my optionsWhat you'll typically need
- Your 1099 forms for the most recent one or two years
- A year-to-date earnings record, such as recent statements or a payer letter
- Proof of continued work: a current contract, a payer letter, or license
- Photo ID and asset statements for funds to close and reserves
Typical guidelines
Every lender sets its own rules. These are common patterns, not promises, and they change. We match your file to the lender whose guidelines fit it best.
- History: one to two years of 1099 income is common; same line of work matters
- Credit: many programs start around 620
- Expense ratio: set by the lender, often lower than your actual write-offs
- DTI: some lenders allow up to around 50% with compensating factors
- W-2 plus 1099: many lenders will combine both income types
- Property: primary, second home, and investment are typically allowed
Who it fits (and who it doesn't)
Usually a good fit
- Real estate agents, consultants, contractors, creators, and commissioned sales pros
- Stable payers that issue 1099s every year
- Heavy write-offs that shrink your Schedule C
Maybe not the best fit
- Income paid mostly in cash with no 1099s
- A brand new contractor role with no 1099 history yet (bank statements may work better)
- Income that dropped sharply this year compared to last
1099 Loans: common questions
Can I get a mortgage with only 1099 income?
Yes. 1099-only programs are built for borrowers who are paid as independent contractors. The lender uses your 1099 totals and a set expense ratio to calculate qualifying income, instead of your full Schedule C net.
How many years of 1099s do I need?
Many lenders want one to two years of 1099 history in the same line of work. Some will look at one year with strong compensating factors. We match your history to the lender whose guidelines fit.
Do real estate agents qualify for 1099 loans?
Real estate agents are one of the most common 1099 borrowers. Commission income that's reported on 1099s can often be used directly, even when your tax return shows heavy marketing and vehicle write-offs.
Can I combine W-2 and 1099 income?
Often, yes. Many lenders will count W-2 wages with standard documentation and add your 1099 income on top using the 1099 program's method.
1099 Loans are non-QM programs, not available in all states, and subject to credit approval, income and asset verification, and appraisal. Guidelines shown are typical illustrations and vary by lender. This is not a commitment to lend. Matador Lending, NMLS #2072896. Equal Housing Opportunity.
Guides for this program
The 1099 mortgage guide for independent contractors
Paid on a 1099? Here is how a 1099 mortgage works, how lenders read your income, and what to have ready before you check your options.
How lenders calculate self-employed income, method by method
Tax returns, bank statements, 1099s, a P&L, or rental cash flow. Here is how lenders turn each one into a qualifying income number.
Getting a mortgage when you've been self-employed less than 2 years
Two years of self-employment is common, but it is not always required. Here's how lenders view newer businesses and what options may be open to you.
Find out what you qualify for in about 60 seconds
No tax returns. No credit pull to start. Just a straight answer from a broker who works for you.
Equal Housing Opportunity · NMLS #2072896 · Powered by Matador Lending