A 1099 mortgage loan is a home loan that qualifies self-employed borrowers, independent contractors, freelancers, consultants, and gig workers using 1 or 2 years of 1099 totals — instead of personal tax returns. Income from contract work, agency contracts, royalties, sales commissions, and any other 1099-reported earnings all count. Loans go up to $3,500,000. Lending in 49 states. Not available in New York.
Your 1099s are your income.
If you’re paid with 1099s, that money qualifies your mortgage at 100% of gross — not what’s left after write-offs. Tax returns don’t enter the file. 25+ years closing self-employed borrowers other lenders won’t touch.
What Is A 1099 Mortgage Loan?
A 1099 mortgage loan is a home loan that uses the gross income reported on 1099 forms — from clients, contractors, agencies, and other sources — 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 in your year-to-date income from bank statements, and averages the total. That average becomes the monthly income used to qualify your loan. Information current as of May 2026.
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 significant business write-offs — equipment, mileage, home office, contractor pay, marketing, software — those write-offs make your tax return income look small. A contractor earning $250,000 in gross 1099 income but reporting $90,000 after write-offs gets evaluated as a $90,000 borrower under conventional underwriting. A 1099 mortgage uses 100% of the gross 1099 amount as your qualifying income — 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. Common 1099 borrowers include:
- Independent contractors and consultants — IT consultants, project-based developers, designers, writers, marketing consultants, business consultants
- Real estate agents — paid by their brokerage on 1099, commission-based
- Insurance agents — captive and independent, paid on 1099 commissions
- Sales reps — outside sales, manufacturer reps, commission-based 1099 contracts
- Gig workers and freelancers — Uber, Lyft, DoorDash, Upwork, Fiverr earnings reported on 1099-NEC or 1099-K
- 1099 medical professionals — locum tenens doctors, CRNAs, nurse practitioners, traveling physicians, contract therapists
- Attorneys with 1099 contract clients — solo practitioners, of-counsel arrangements, contract attorneys
- Content creators and influencers — brand sponsors, networks, ad platforms (see our creator-specific page for more)
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 cost adjustment. If your 1099s show $300,000 last year, that’s the number we work with — not what’s left after write-offs.
1 or 2 years — your choice
Most borrowers use 2 years for a smoother average. If your most recent year is your strongest (you scaled hard, signed a big new client), 1 year may give a better qualifying income. We’ll 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
Great credit gets you to 10% down on a primary home. Good credit gets you to 15%. Standard is 20% — about the same as a regular loan.
How A 1099 Mortgage Loan Works
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.
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 got reported to the IRS. The transcript request goes through us — you sign a 4506-C form, we pull the records directly.
You send year-to-date bank statements
Even on a 1099 mortgage loan, 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.
We add it all up and average
Total 1099 gross income from the prior year(s) plus your year-to-date bank statement income, divided by total months. 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. If you’re an IT consultant invoicing companies, a real estate agent paid by your brokerage, an insurance agent paid by carriers, a freelancer paid by client companies, or a 1099 physician paid by hospitals — your income shows up on 1099-NEC forms. Every 1099-NEC counts.
1099-MISC (Miscellaneous Income)
Used for rents, royalties, prize money, and certain other payments. If you receive royalty payments (book authors, musicians, software licensors), some commission structures, or rental income paid by management companies, you’ll 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, Venmo Business) 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 any other job. If a 1099 you received is for a one-time gig that won’t repeat, the underwriter may discount or exclude it. Income earned in the cannabis industry is not eligible. Income from 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.
Truth: 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 employees can’t get a mortgage.
Truth: 1099 income qualifies on this loan program at 100% of gross. Most regular lenders don’t know how to underwrite it correctly — but specialized lenders do this every day.
Myth: I need 1099s from a single client to qualify.
Truth: Multiple 1099 sources are normal and often a strength. A consultant with 1099s from 8 clients, a real estate agent with 1099s from one brokerage covering multiple commission deals, or a contractor with 1099s from several agencies — all common, all qualify.
Myth: 1099 mortgage loans are only for high earners.
Truth: 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.
Truth: It’s a 30-year first mortgage. Same security, same closing process, same protections as any home loan. The only difference is how income is calculated upfront.
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.
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 for the loan.
Can I use 1099 income for a mortgage?
Yes. 1099 income qualifies you for a Non-QM mortgage at 100% of gross. Most regular conventional lenders won’t accept 1099 income directly without two years of tax returns showing the net amount, but specialized 1099 mortgage programs do.
Can a 1099 employee get a mortgage?
Yes. “1099 employee” means you’re a 1099 contractor — paid as a self-employed worker, not a W-2 employee. You qualify for a 1099 mortgage 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.
How do you get a mortgage with 1099 income?
Find a lender that offers Non-QM 1099 mortgage programs. Send your last 1 or 2 years of 1099 forms, YTD bank statements, two months of asset statements showing your down payment, and government ID. Sign a 4506-C so the lender can validate your 1099s with the IRS. Pre-approval typically takes 48 to 72 hours.
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 form. 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 by other lenders because the tax return looks low after write-offs; the 1099 path uses the gross instead.
Can independent contractors and freelancers qualify?
Yes. IT consultants, designers, writers, marketing freelancers, project-based contractors, and any 1099-paid independent worker qualify on the 1099 path. As long as your income is reported on 1099s and you have 2 years of self-employment history, you fit the program.
Can a 1099 physician or CRNA get a mortgage?
Yes. 1099 medical professionals — including locum tenens physicians, CRNAs, traveling nurses, contract therapists, and 1099 specialists — qualify on this program. Hospital 1099s and staffing agency 1099s both count. Many medical professionals on 1099 contracts find this is the easiest mortgage path because their gross income is high but tax returns show heavy deductions.
What credit score do I need for a 1099 mortgage?
Most 1099 mortgage programs work with good credit — not perfect credit. Better credit gets you better terms and a lower down payment. The exact floor depends on the program; we’ll tell you where you stand on a quick call.
What are the requirements for a 1099 mortgage loan?
2 years of self-employment, business operating 2 years, good credit, 10% to 20% down on a primary home (more on investment), 6 months of mortgage savings as reserves, all 1099s validated with the IRS via 4506-C, and YTD bank statements. Property must appraise at or above purchase price.
How are 1099 mortgage rates compared to regular rates?
Rates are competitive. Your exact rate depends on your credit, down payment, loan amount, and program. Strong-credit borrowers with 20% down see the best pricing. The whole point of these loans is that you can buy now using your real income — most self-employed borrowers do the math and the loan pays for itself.
How do mortgage lenders calculate 1099 income?
100% of gross 1099 income (validated against IRS records) plus year-to-date bank statement income, divided by total applicable months — typically 12 or 24 months. The result is your monthly qualifying income. No write-off adjustments. No expense ratio.
Do I need PMI on a 1099 mortgage?
PMI (private mortgage insurance) is generally not required on Non-QM 1099 mortgage loans the way it is on conventional loans. Pricing is built into the rate structure instead. With 20% or more down, there’s no separate PMI cost; with less down, the rate may reflect the higher LTV but you won’t get a separate PMI bill.
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’ll structure the file based on which path gives you the highest qualifying income.
I just switched from W-2 to 1099 — can I still get a mortgage?
Generally you’ll need 2 years of 1099 self-employment history, but if you switched to 1099 within the same line of work — same industry, same kind of role — your prior W-2 history can count toward the 2-year requirement. A nurse who went from staff position to 1099 locum tenens, or a developer who left an agency to consult independently, often qualifies on this exception.
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. Not available in New York. Loan terms are the same nationwide; specific state requirements (like Texas Home Equity rules on cash-out refinances) may apply on a per-property basis.
Can I refinance with a 1099 mortgage loan?
Yes. Refinances and cash-out refinances are available on 1099 mortgage loans. Common reasons: pull cash out for business expansion, pay off high-rate debt, consolidate other obligations, or move from a hard-money loan into a 30-year fixed.
What are the best 1099 mortgage lenders?
Look for brokers and lenders with deep Non-QM experience, transparent fee structures, and a track record with self-employed borrowers in your specific profession. A general broker may have access to 1099 programs, but won’t know how to structure files where income comes from multiple 1099 sources or where year-over-year income varies. Experience with 1099 underwriting matters more than brand name.
Related Loan Options
1099 Income Loans For Creators
Creator-specific deep dive — for influencers, podcasters, streamers, and entertainers paid via brand sponsor and ad platform 1099s.
Bank Statement Loans
If most of your income comes from cash deposits without 1099s — a service business, salon, restaurant — bank statements may be the better path.
DSCR Loans
Buying a rental property? DSCR qualifies on the property’s rent — your personal income isn’t part of the math.
All Non-QM Loan Options
Compare every alternative-doc loan path — 1099, bank statement, DSCR, P&L, asset depletion, ITIN, foreign national.
About The Author
J.D. Peck — Area Manager and Mortgage Loan Originator at Paramount Residential Mortgage Group, Inc. NMLS 314883. 25+ years in mortgage. 3,100+ loans closed. Scotsman Guide Top Originator 2026. Specializes in Non-QM and complex income for self-employed borrowers.
Last updated: May 2026.
See What Your 1099s Qualify For
Send 1 or 2 years of 1099s and your year-to-date bank statements. We’ll add them up and tell you the exact qualifying income, max loan amount, and program that fits — usually within 48 hours.