The direct answer
Yes. Non-QM 1099 loan programs let contractors qualify using one or two years of 1099 forms instead of tax returns — No Tax Returns Required. The lender totals your 1099 earnings, applies an expense factor, and divides by the qualifying months to set your income. Good credit, a solid down payment, and reserves still matter, and guidelines vary by investor.
Who qualifies?
These programs are designed for people paid as independent contractors. You may be a fit if you:
- Receive 1099 income — 1099-NEC, 1099-MISC, or similar forms — as your primary earnings.
- Have one or two years of 1099 history showing consistent or growing earnings.
- Are self-employed in practice: freelancers, consultants, tradespeople, drivers, and gig workers.
- Can document reserves — liquid funds left after closing strengthen any self-employed file.
What you don't need: filed tax returns for qualification, W-2s, or pay stubs. The 1099 forms themselves are the income documentation.
Worked example
Illustrative example — not a quote or commitment to lend.
A handyman received $95,000 across several 1099-NEC forms over the last 12 months. The lender totals the 1099 earnings, applies the program's expense factor to account for the cost of doing business (the exact factor varies by program and is set by the investor), and divides by 12 to get monthly qualifying income. If his actual documented expenses are lower than the standard factor, a CPA letter documenting real expenses may increase the income the lender counts — but the tax returns themselves are never required.
Important exceptions
- Brand-new contractors with less than a year of 1099 history will find fewer program options.
- Declining income year over year — underwriters typically use the lower year's figure, or an average that weights it down.
- Multiple 1099 payers are fine, but every 1099 in the qualifying period should be accounted for.
- W-2 plus 1099 income may be split: the W-2 portion documented conventionally, the 1099 portion through the 1099 program.
1099 loan vs. conventional mortgage
| Feature | 1099 loan (Non-QM) | Conventional mortgage |
|---|---|---|
| Income verified with | 1099 forms, 1–2 years | Tax returns, often 2 years |
| Best for | Contractors with heavy write-offs | Borrowers whose returns show full income |
| Expense treatment | Standard expense factor applied | Net profit after actual deductions |
| Tax returns needed? | No Tax Returns Required | Usually yes |
Authoritative sources
- Consumer Financial Protection Bureau — Ask CFPB: plain-language answers on mortgages, including how lenders verify income and ability to repay.
- HUD-approved housing counselors: free or low-cost guidance on the homebuying and mortgage process.
For Non-QM specifics, program guidelines vary by investor — confirm current requirements with us before relying on them.
Related NonQM Rates resources
- 1099 & Self-Employed Loans — full program overview
- How 1099 Workers Qualify — blog deep dive
- Reasons Self-Employed Borrowers Get Denied — avoid common pitfalls
- How is 1099 income calculated for mortgage qualification?
- Bank statement loan vs. 1099 loan — which is better?
What should I do next?
Find out if you qualify — it takes about 60 seconds
Tell us about your income and your goal, and a NonQM Rates specialist will map your options. No Tax Returns Required.
Check My Eligibilityor call 949-241-9489
Guidelines vary by investor and are subject to change. Educational content only — not loan advice. Not a commitment to lend.
