1099 Loans
For contractors, gig workers, and commission earners — qualify on gross 1099 income.
Program Overview
1099 Loans are a non-QM mortgage product designed for borrowers who earn income reported on IRS Form 1099 rather than a W-2. This includes independent contractors, commission-based sales professionals, freelancers, gig economy workers, and real estate agents.
Unlike bank statement loans that use deposit averages, 1099 loans allow the lender to use the gross income reported on 1-2 years of 1099 forms — often before business expense deductions. This can significantly increase qualifying income compared to using tax return net income.
The program recognizes the growing segment of the workforce that earns consistent, verifiable income outside of traditional employment.
At a Glance
Who May Qualify
- Independent contractors and 1099 earners with 1–2 years of 1099 income history
- Commission-based earners in real estate, insurance, financial services, etc.
- Gig economy workers (rideshare, delivery, platforms)
- Freelancers and consultants with consistent 1099 income
- Minimum credit score typically 620–660 (lender-dependent)
- Must provide 1 or 2 years of 1099 forms
- Primary residences, second homes, and some investment properties
Advantages
- Qualify on gross 1099 income — not net taxable income
- No W-2 or traditional employment verification required
- Great for real estate agents, consultants, and contractors
- Primary and second home options available
- Faster qualification path for documented 1099 earners
Considerations
- Non-QM product — higher rates than agency loans
- 1–2 year 1099 history required
- Higher down payment than conventional loans
- Some lenders require tax returns in addition to 1099s
- Guidelines vary by lender
1099 Loan programs are non-QM products. Guidelines, income calculation methods, and eligibility requirements vary by lender. This page is for educational purposes only. Consult a licensed loan officer for current program details.
Ready to See If You Qualify?
Get a free personalized review from Alberto Cruz — a licensed loan officer who works with all of these programs daily.