1099 Loan Program
A 1099 Loan Program is designed specifically for self-employed individuals, independent contractors, freelancers, and gig workers whose income is reported on IRS Form 1099 rather than a traditional W-2. This program offers a flexible path to homeownership for borrowers who may not qualify for conventional mortgages due to non-traditional income documentation.
Key Features
Qualify using your 1099 earning statements instead of full tax returns
Loans available for primary residences, second homes, and investment properties
Loan amounts typically range from $150,000 up to $3 million, depending on the lender
Both purchase and refinance options available
No tax returns required; most lenders accept 1 to 2 years of 1099s plus year-to-date earnings documentation
Fast, streamlined approval process tailored for self-employed borrowers
Eligibility:
Must be self-employed or a contract worker with income reported on 1099 forms
Typically, at least 1–2 years of consistent 1099 income in the same line of work is required
Minimum credit score requirements usually start at 620–700, with better terms for higher scores
Down payment requirements generally range from 10% to 25%, depending on credit and loan amount
Debt-to-income ratio should generally be 50% or less
Documentation needed may include recent 1099 forms, year-to-date earning statements, bank statements, and proof of ongoing self-employment (such as a CPA letter or business license)
Some lenders require that at least 50% of your income comes from 1099 sources
