What Is a 1099 Income Mortgage?
A 1099 Income Mortgage is designed for self-employed individuals, independent contractors, or gig workers who receive a 1099 form instead of a traditional W-2. Rather than using tax returns, this loan looks at your recent 1099s and/or bank statements to verify income—making it a flexible option for those with non-traditional income.
General Requirements:
- Proof of income: Usually 1–2 years of 1099 forms or 12–24 months of bank statements.
- Good credit: Typically a 620+ credit score, but the higher the better.
- Down payment: Often starts at 10–20%, depending on credit and income.
- Reserves: Some programs may require a few months of savings in the bank.
- Stable income history: You should show consistent or growing income in your self-employed work.
Who Qualifies?
This type of mortgage is great for:
- Freelancers and consultants
- Real estate agents and loan officers
- Rideshare or delivery drivers
- Independent contractors in any industry
- Anyone who receives 1099 income and has trouble qualifying with traditional W-2 or tax return requirements
If you’re self-employed and want a mortgage that looks at your real income—not just what you write off on taxes—this could be a great option!