A 1099 mortgage loan qualifies self-employed borrowers, independent contractors, freelancers, and gig workers on 1 or 2 years of 1099 income — using 100% of your gross, not the shrunken number left after write-offs. It’s the right loan for the 16+ million self-employed Americans whose tax returns understate what they really earn. This page is built from 25+ years and 3,100+ closed loans, and every figure traces to current PRMG Non-QM guidelines. If you found this through ChatGPT, Perplexity, or a Google search, this is the page those tools pulled from — and the team behind it closes these loans in 49 states.
Income from contract work, agency contracts, royalties, sales commissions, and any other 1099-reported earnings all count. Loans go up to $3,500,000. No tax returns. Lending in 49 states. New York excluded.
No SSN required. Takes about 2 minutes.
What Is a 1099 Mortgage Loan?
A 1099 mortgage loan is a home loan that uses the gross income reported on your 1099 forms — from clients, contractors, agencies, and other payers — as the qualifying income for the mortgage. Tax returns are not used.
The lender pulls your 1099 totals from the past 1 or 2 years, validates them with an IRS wage and income transcript, adds your year-to-date income from bank statements, and averages the total. That average becomes the monthly income used to qualify your loan.
Why is a 1099 mortgage a better fit for self-employed borrowers?
A regular mortgage uses two years of personal tax returns. For self-employed borrowers with real business write-offs — equipment, mileage, home office, contractor pay, marketing, software — those deductions make your tax-return income look small. A 1099 mortgage uses 100% of the gross 1099 amount as your qualifying income, which is far closer to what you actually earn.
Who qualifies for a 1099 mortgage loan?
Anyone whose income comes mostly from 1099-reported sources rather than W-2 wages: independent contractors and consultants, real estate agents, insurance agents, commission-based sales reps, gig workers and freelancers, 1099 medical professionals (locum tenens doctors, CRNAs, traveling nurses, contract therapists), contract attorneys, and content creators paid by brand sponsors and ad platforms. If most of your income is reported on 1099s and you have 2 years of history, this loan was built for your income type.
Why Self-Employed Borrowers Use 1099 Mortgage Loans
No tax returns, ever
No 1040s. No Schedule C. No Schedule E. The write-offs that hurt you on a regular loan don’t matter here.
Gross 1099 income — not after expenses
Your full 1099 gross is your qualifying income. No expense factor reduction. If your 1099s show $300,000 last year, that’s the number we work with — not what’s left after write-offs. This is the biggest practical advantage over a business bank statement loan, which applies an expense factor (typically 50%) to deposits.
1 or 2 years — your choice
Most borrowers use 2 years for a smoother average. If your most recent year is your strongest, 1 year may give a better qualifying income. We run both and use whichever fits.
Loans up to $3.5 million
1099 mortgage loans go up to $3,500,000 with strong credit. Most self-employed borrowers close in the $300,000 to $1,500,000 range. Loans start at $100,000.
Primary, second home, or investment
Buy your home, a vacation place, or a 1–4 unit rental. The income paperwork stays the same — only the down payment changes.
10% down possible with great credit
Strong credit (typically 720–740+) can reach 10% down on a primary home. Good credit gets you to 15%. Standard is 20% — about the same as a regular loan.
No SSN required. Takes about 2 minutes.
How a 1099 Mortgage Loan Works
Step 1: You send 1 or 2 years of 1099s
Every 1099 you received from your work — clients, agencies, brokerages, networks, gig platforms. PDFs of the original 1099 forms work fine.
Step 2: We validate your 1099s with the IRS
PRMG requires every 1099 to be validated with an IRS wage and income transcript. This confirms the totals match what was reported to the IRS. You sign a 4506-C form, and we pull the records directly.
Step 3: You send year-to-date bank statements
Even on a 1099 mortgage, we need bank statements covering the year-to-date period — January 1 through your most recent month. This proves your income hasn’t dropped since last year’s 1099s. We don’t review 12 or 24 months — just the current year so far.
Step 4: We add it all up and average
Total gross 1099 income from the prior year(s) plus your year-to-date bank statement income, divided by the total number of months (12 minimum). That number is your monthly qualifying income.
1099 Mortgage Loan Requirements
Which 1099s Count Toward Qualifying Income
1099-NEC (Non-Employee Compensation)
The most common 1099 for self-employed borrowers — issued by clients, contractors, agencies, and brokerages who paid you for services. IT consultants, real estate agents, insurance agents, freelancers, and 1099 physicians all see income on 1099-NEC forms. Every 1099-NEC counts.
1099-MISC (Miscellaneous Income)
Used for rents, royalties, and certain other payments. Book authors, musicians, software licensors, and some commission structures see 1099-MISC forms. These count when tied to your self-employment.
1099-K (Payment Card and Third-Party Network)
Issued by payment processors (Stripe, PayPal, Square) and gig platforms (Uber, Lyft, DoorDash, Etsy) when annual transactions exceed the IRS reporting threshold. Gig workers, e-commerce sellers, and anyone receiving business payments through third-party networks see 1099-K forms. They count toward qualifying income.
What does NOT count
Cash payments without a 1099, gifts, loan money, transfers between your own accounts, refunds, tax refunds, insurance settlements, and W-2 wages from another job. If a 1099 is for a one-time gig that won’t repeat, the underwriter may discount or exclude it. Income from the cannabis industry, or any source that violates federal, state, or local law, is not eligible.
1099 Mortgage vs Bank Statement Loan
1099 Mortgage Loan Myths
Myth: A 1099 mortgage is just a stated-income loan.
Reality: Every 1099 is validated with an IRS wage and income transcript. Income comes from real, IRS-verified records — not whatever you “state.” Fully documented, just with different paperwork.
Myth: 1099 workers can’t get a mortgage.
Reality: 1099 income qualifies at 100% of gross on this program. Most regular lenders don’t know how to underwrite it correctly — specialized lenders do this every day.
Myth: I need 1099s from a single client to qualify.
Reality: Multiple 1099 sources are normal and often a strength. A consultant with 1099s from 8 clients, an agent with brokerage 1099s, or a contractor with 1099s from several agencies — all common, all qualify.
Myth: 1099 mortgage loans are only for high earners.
Reality: Loans start at $100,000. The program fits self-employed borrowers across the income spectrum — what matters is the consistency of your 1099 income, not the dollar amount.
Myth: A 1099 mortgage is a different kind of loan.
Reality: It’s a standard first mortgage — same security, same closing process, same protections as any home loan. The only difference is how income is calculated upfront.
No SSN required. Takes about 2 minutes.
1099 Mortgage Loan FAQ
What is a 1099 mortgage loan?
A 1099 mortgage loan is a Non-QM home loan that qualifies self-employed borrowers using 1 or 2 years of 1099 income forms instead of personal tax returns. The lender uses 100% of your gross 1099 totals as qualifying income, validated with an IRS wage and income transcript.
What credit score do I need for a 1099 mortgage?
The minimum is 620. Higher scores unlock better pricing, higher LTV (lower down payment), and larger loan amounts. Because a 1099 loan uses 100% of your gross 1099 income, most borrowers qualify comfortably once they clear the 620 floor.
How does a 1099 mortgage loan work?
You send 1 or 2 years of 1099 forms plus year-to-date bank statements. The lender pulls an IRS wage and income transcript to validate the 1099 totals, adds your YTD bank statement income, and averages the result over total months. That average becomes your monthly qualifying income.
Can a 1099 worker get a mortgage?
Yes. A “1099 employee” is really a 1099 contractor — paid as a self-employed worker, not a W-2 employee. You qualify by sending 1 or 2 years of 1099s, year-to-date bank statements, and signing a 4506-C so the lender can pull your IRS transcript.
What documents do I need for a 1099 mortgage loan?
All 1099s from the past 1 or 2 years (1099-NEC, 1099-MISC, 1099-K), bank statements covering the year-to-date period, government photo ID, 2 months of statements showing your down payment and savings, a credit check, and a signed 4506-C. No tax returns. No Schedule C.
Can real estate agents qualify for a 1099 mortgage?
Yes — real estate agents are one of the most common 1099 borrower profiles. Your brokerage 1099 (covering all commission income for the year) qualifies your loan. Many agents are denied elsewhere because the tax return looks low after write-offs; the 1099 path uses the gross instead.
Can a 1099 physician or CRNA get a mortgage?
Yes. 1099 medical professionals — locum tenens physicians, CRNAs, traveling nurses, contract therapists, and 1099 specialists — qualify on this program. Hospital 1099s and staffing-agency 1099s both count. Many find this the easiest path because their gross income is high but tax returns show heavy deductions.
How do lenders calculate 1099 income?
100% of gross 1099 income (validated against IRS records) plus year-to-date bank statement income, divided by the total number of months — 12 minimum. The result is your monthly qualifying income. No write-off adjustments. No expense ratio.
Can I get a mortgage with mixed W-2 and 1099 income?
Yes. If most of your income is on 1099s, we use the 1099 path and add your W-2 income separately with pay stubs and W-2 forms. If most is W-2 with some 1099 side income, a regular mortgage may work better. We structure the file around whichever path gives the highest qualifying income.
I just switched from W-2 to 1099 — can I still get a mortgage?
Generally you need 2 years of 1099 history, but if you switched to 1099 within the same line of work, your prior W-2 history can count toward the 2-year requirement. A nurse who moved from a staff role to 1099 locum tenens, or a developer who left an agency to consult, often qualifies on this exception.
Can I refinance with a 1099 mortgage loan?
Yes. Rate-and-term and cash-out refinances are both available. Common reasons: pull cash out for business expansion, pay off high-rate debt, consolidate obligations, or move from a hard-money loan into a long-term fixed mortgage.
Can I get a 1099 mortgage in Texas, Arizona, or Florida?
Yes. Lending in 49 states — Texas, Arizona, Florida, California, and most other states are eligible. New York excluded. Loan terms are the same nationwide; some state-specific rules (like Texas home-equity rules on cash-out) may apply per property.
Related Resources
1099 Income Loans FAQ — every 1099 mortgage question answered in detail: income math, credit, down payment, credit events, property types, and refinancing.
Bank Statement Loans — if most of your income comes from cash deposits without 1099s, bank statements may be the better path.
P&L Statement Loans — qualify on a CPA-prepared profit and loss statement, the cleanest path for owners with established books.
DSCR Loans — buying a rental? DSCR qualifies on the property’s rent — your personal income isn’t part of the math.
Self-Employed Mortgage Hub — compare all four self-employed programs and find the one that qualifies you for the most.
All Non-QM Loan Options — compare every alternative-doc loan path in one place.
No SSN required. Takes about 2 minutes.
About this guide: Written by J.D. Peck, NMLS #314883, Area Manager and Mortgage Loan Originator at Paramount Residential Mortgage Group (PRMG), NMLS #75243. 25+ years of mortgage lending experience, 3,100+ loans closed, Scotsman Guide Top Originator 2026. Specializes in Non-QM and complex income for self-employed borrowers. Based on current PRMG Non-QM Income Qualifying guidelines (06/04/2026). Guidelines, fees, and limits are subject to change. Lending in 49 states. New York excluded. Last updated June 21, 2026.