1099 Mortgage — Qualify on 1099 Income Alone

If you earn your living on 1099s — as a real estate agent, independent consultant, traveling healthcare professional, insurance producer, gig platform worker, or independent contractor of any kind — traditional mortgage underwriting rarely works in your favor. Your tax returns show a fraction of your actual income after deductions. Your 2-year employment history doesn’t look clean even if you’ve been earning consistently for a decade.

1099-only mortgages solve this. Qualify using your 1099s directly — no tax returns, no W-2s, no 1040s.

How 1099-Only Mortgages Work

Instead of looking at your 1040 (which shows taxable income after business deductions), 1099-only programs look at your 1099 forms directly. The lender calculates qualifying income from the gross 1099 totals, applies a conservative expense factor to account for business costs, and uses the resulting figure for qualification.

Typical calculation:

• Total 1099 gross income (12 or 24 months)
• Apply expense factor (often 10-25% depending on profession and documentation)
• Divide by 12 = monthly qualifying income

For example: if you earned $200,000 on 1099s last year and the program applies a 15% expense factor, qualifying income is $200,000 × 0.85 ÷ 12 = $14,167/month.

Compare to conventional underwriting, which would use your 1040’s Schedule C net income after all deductions — often 40-60% lower.

Who Uses 1099 Mortgages

Real estate agents and brokers. Top producers have strong commission income but tax returns heavily optimized through expenses, brokerage splits, and deferred income. 1099s show the real gross earnings.

Independent consultants. Management, strategy, IT, healthcare, legal, financial — any 1099 consultant billing clients directly benefits from 1099-only qualification.

Insurance producers + financial advisors. Commission-based income that’s cleanly documented on 1099s.

Healthcare professionals. Travel nurses, locum-tenens physicians, specialty contractors — 1099 income that fluctuates by assignment but totals strong annually.

Gig platform workers. Uber, Lyft, Instacart, DoorDash, Upwork, Fiverr, and similar. If you’ve been at it consistently for 2+ years, your 1099s from the platforms are your income proof.

Independent contractors (various trades). Construction specialty contractors, freelance designers, writers, editors, content creators, photographers, videographers — all paid via 1099.

Rep-based sales professionals. Manufacturer reps, independent software sales, pharmaceutical reps (when 1099), etc.

1099 Mortgage vs. Bank Statement Mortgage — Which Fits You?

Both products skip tax returns. The difference is what documentation each uses:

Pick 1099 mortgage if:

• Your income is primarily 1099-reported
• You have fewer than 3-4 1099 payers
• You want the cleanest, most straightforward documentation path

Pick bank statement if:

• You own a business with multiple income streams
• You have S-corp distributions or K-1 partnership income
• Your business has significant cash flow that doesn’t land cleanly on a single 1099
• Your deposits show income your 1099s don’t capture

Some borrowers qualify for both and pick based on which produces a higher qualifying income figure.

1099 Mortgage Requirements

• Credit score: 620 minimum; 700+ for best pricing
• Documentation: 1 or 2 years of 1099 forms (whatever the program requires)
• Self-employment history: 2+ years in the same line of work typically required
• Down payment: 10% minimum primary; 20-25% investment
• Loan amounts: Up to $3 million+ (jumbo 1099 programs available)
• Property types: SFR, condo, townhome, 2-4 unit
• Occupancy: Primary, second home, or investment
• Reserves: 2-6 months typical (higher on jumbo)
• LLC vesting available for investment properties

1099 Mortgage Scenarios

Real estate agent, primary home purchase

• Borrower: Top-producing agent, 8 years in business
• Last 2 years 1099s: $285K (2024) + $310K (2025) — avg $297K
• Expense factor applied: 15%
• Qualifying income: $297K × 0.85 ÷ 12 = $21,037/month
• Purchase: $950K primary home, 20% down, 30-year fixed
• Result: Approved. Conventional 1040-based underwriting would have shown ~$85K qualifying income after Schedule C write-offs — not even close to supporting the purchase.

Independent consultant, cash-out refinance

• Borrower: IT consultant, billing through LLC, 5 years in business
• 1099s from 3 clients last 12 months: $178K total
• Expense factor: 20%
• Qualifying income: $178K × 0.80 ÷ 12 = $11,867/month
• Current home value: $750K, current mortgage $280K
• Cash-out at 70% LTV: $525K loan, $245K cash to borrower
• Result: Approved. Cash-out funds used to acquire first investment property.

Travel nurse, investment property purchase

• Borrower: Travel nurse, 4 years, various travel agencies
• Last year’s 1099-NEC total: $165K
• Expense factor: 10% (clean minimal-expense profile)
• Qualifying income: $12,375/month
• Purchase: $385K duplex rental, 25% down, vested in LLC
• Result: Approved. Could also have used DSCR (property-based) program — borrower chose 1099-based because rental comps were thin in this specific market.

Frequently Asked Questions

Get Started

1099-earner and ready to finance a home? Call (833) 350-9185 or check your eligibility .

See also: Bank Statement Loans · Mortgage Without Tax Returns · DSCR Loans · 12-Month Bank Statement Program