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1099 Home Loans: Qualify Using Your Real Income, Not Tax Write-Offs
- Qualify using 1099 income (no tax returns required)
- Flexible income calculation options
- In-house underwriting
- 10–21 day closing
Access loan options from 100+ lenders, matched to your situation.
- No impact on credit
- Takes 1 min
Is a 1099 loan the right choice for me?
1099 loans are designed for self-employed borrowers or independent contractors whose tax returns don’t reflect their true income due to write-offs.
Get a rate quoteA 1099 Loan may be a good fit if you:
- are self-employed or receive 1099 income
- write off significant expenses and show lower taxable income
- cannot qualify using traditional W-2 or tax return documentation
- want to use gross or adjusted 1099 income instead of net income
- are comparing bank statement loans vs. 1099 income loans
- want a more flexible path to homeownership
1099 Loan Requirements
1099 income history
Usually the most recent one or two years of 1099 forms.
Current-year income
Borrowers may need year-to-date earnings statements, pay records, invoices or recent bank statements showing that the income is continuing.
Credit score
Minimums vary. Current programs begin around 600–640, but stronger credit may be required for a lower down payment or larger loan amount.
Down payment
As little as 10% down may be available to borrowers with stronger credit. Depending on the lender, credit profile and loan amount, 20%–25% down may be required.
Income calculation
The lender generally averages eligible 1099 earnings over the required period.
Debt-to-income ratio
The lender compares qualifying monthly income with the proposed mortgage payment and the borrower’s existing debts.
Property approval
An appraisal is normally required. Eligible properties may include primary residences, second homes and investment properties, depending on the program.
1099 Loan Requirements (2026)
1099 loans are more flexible than traditional loans, but they still require a strong overall file.
Other lenders/Banks
Other
Lenders shopped
100+
Limited to 1
Non QM Loans
Yes
Limited
Minimum credit score
550
640+
DTI Requirements
55%
43%
Fast-track Underwriting
Yes
No
Approval Rate
93%
Lower
Closing time
7-21 days
30 days
Dedicated Loan Officer
Yes
No
Availability
24/7
Limited
Average response time
<1hour
<1 day
Today's live rates
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Client Reviews: 30 Years of 5-Star Mortgage Service
For over 30 years, we’ve helped self-employed borrowers navigate complex income scenarios with more clarity, better options, and fewer last-minute surprises.
Frequently asked questions
What is a 1099 loan?
A 1099 loan is a type of non-QM mortgage designed for self-employed borrowers or independent contractors. It allows you to qualify using your 1099 income instead of traditional tax returns.
Do 1099 loans require tax returns?
Not always. Many 1099 loan programs allow you to qualify using only your 1099 forms, without full tax return analysis.
How much down payment do you need for a 1099 loan?
Most programs require 10–20% down, depending on your credit score, income strength, and overall loan profile.
What credit score do you need for a 1099 loan?
Many programs start around 600–620, but better terms are available with higher credit scores.
Does a 1099 loan have higher interest rates than conventional loans?
In some cases, yes. Because 1099 loans offer more flexibility, rates may be slightly higher.
However, they can be the only path to qualifying if tax returns limit your approval.
Can you use a 1099 loan for investment properties?
In some cases, yes. Eligibility depends on the lender, down payment, and overall loan scenario.
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No credit impact, takes 2 minutes
- No impact on credit
- Takes 1 min
- No docs needed
