Financing Built for the Way You Earn.
1099 loan programs may offer eligible independent contractors and self-employed borrowers an alternative way to qualify using documented 1099 income instead of relying solely on traditional W-2 earnings.
What Are 1099 Loans?
1099 loans are alternative mortgage programs designed for borrowers whose income is primarily earned as an independent contractor, freelancer, consultant, commission-based professional, or other non-W-2 worker.
Instead of evaluating income the same way as a traditional salaried employee, eligible programs may use documented 1099 earnings and other supporting information to determine qualifying income.
This can provide another financing option for borrowers who have consistent earnings but whose employment structure does not fit neatly within traditional W-2 income guidelines.
Program requirements vary, and borrowers must still demonstrate the ability to repay the mortgage.
At a Glance
| Designed For | Independent contractors, freelancers, and eligible self-employed borrowers |
| Income Documentation | Qualifying 1099 income may be used |
| Employment Type | Non-W-2 income may be eligible |
| Tax Returns | May not be required to calculate qualifying income under certain programs |
| Credit | Requirements vary by program and borrower profile |
Is a 1099 Loan Right for You?
A 1099 loan may be worth exploring if you:
- Work as an independent contractor or freelancer
- Receive most or all of your income through 1099 forms
- Have consistent earnings but do not receive a traditional W-2
- Have business deductions that may reduce the income shown on your tax returns
- Want to explore an alternative way to document qualifying income
Important Considerations
Income History Matters
1099 loan programs generally evaluate the consistency and history of the borrower's earnings. The amount of income that can be used for qualification depends on the specific program and documentation provided.
Documentation Still Matters
Alternative documentation does not mean documentation-free financing. Borrowers may still need to provide 1099 forms, income history, asset documentation, identification, and other information required for underwriting.
Income May Be Calculated Differently
The qualifying income used for a 1099 mortgage may not simply equal the gross amount shown on a 1099 form. Program guidelines determine how eligible income is calculated and whether applicable expenses or adjustments must be considered.
Qualification Is Based on the Full Financial Profile
Credit, debts, assets, reserves, property type, loan amount, and loan-to-value can all affect eligibility in addition to income documentation.
Explore Related Loan Programs
Bank Statement Loans
Alternative financing that may allow eligible self-employed borrowers to qualify using personal or business bank statements rather than relying solely on traditional tax-return income.
LEARN MOREDSCR Loans
Investment property financing that may qualify eligible real estate investors primarily using the property's rental income rather than traditional personal income.
LEARN MOREJumbo Loans
Higher loan amount financing for qualified borrowers purchasing or refinancing properties above applicable conforming loan limits.
LEARN MOREConventional Loans
Traditional mortgage financing for qualified borrowers who meet conventional income, credit, and underwriting requirements.
LEARN MORECommon Questions About 1099 Loans
A 1099 loan is an alternative mortgage program that may allow eligible borrowers to document qualifying income using 1099 earnings rather than relying solely on traditional W-2 income.
These programs may be suitable for independent contractors, freelancers, consultants, commission-based professionals, and other borrowers who receive a significant portion of their income through 1099 forms.
1099 programs are generally designed for borrowers who earn income outside of a traditional W-2 employment structure. The exact employment or income-history requirements depend on the program.
Certain 1099 programs may allow qualifying income to be calculated without relying on personal tax returns. Other supporting documentation may still be required.
See What Options May Work for You
1099 loan programs, documentation requirements, rates, terms, loan amounts, and eligibility guidelines vary by lender and are subject to change. Alternative income documentation does not eliminate underwriting or ability-to-repay requirements. Not all applicants will qualify. Contact Premier Point Mortgage for current program requirements and available options.
