What a 1099 loan is
A 1099 loan is a Non-QM mortgage designed for contractors, freelancers, and gig-economy earners paid on Form 1099. Instead of forcing 1099 income through conventional self-employment underwriting — with its write-off penalties — these programs document income from 1099 earnings and bank deposits directly. Full program details →
How qualifying works
Sample qualifying snapshot: A strong file shows (1) 1099s or a year-to-date earnings record from payers; (2) bank deposits corroborating the earnings pattern; (3) continuity in the same line of work; (4) acceptable credit and reserves. Exact documentation combinations and history requirements vary by investor and are subject to change.
The key advantage over conventional: no Schedule C net-income haircut. If you earned it and can document the flow, it generally counts.
3 qualifying scenarios
Scenario 1 — The travel nurse: Contracts in three states, W-2/1099 mix, strong deposits. Conventional underwriting chokes on the multi-state, multi-payer pattern. A 1099 program follows the money instead.
Scenario 2 — The rideshare + delivery stacker: Two platforms, weekly payouts, no single employer. Deposits tell a consistent story the tax return obscures with mileage deductions.
Scenario 3 — The IT contractor: Six-figure 1099 contracts, renews annually, but writes off a home office and equipment. The 1099 path qualifies the gross earnings pattern. Illustrative examples; exact terms vary by investor and are subject to change.
Check Your Eligibility — 1099 Loans
60 seconds. No obligation, no hard credit pull. NMLS #7861.
Who 1099 loans are NOT for
- 1099 earners with clean, high net taxable income — if your returns already show the income, conventional may price better.
- Brand-new 1099 earners with no history in the field — continuity matters.
- Borrowers who can't document the flow — earnings need a paper trail, whether 1099s, contracts, or deposits.
Frequently asked questions
How is a 1099 loan different from a bank statement loan?
They're cousins. 1099 programs lean on your 1099 earnings records; bank statement programs lean on deposits. Many borrowers qualify under either — we pick the stronger documentation path.
Do I need two years of 1099 history?
Continuity in your line of work matters more than the exact form count. Requirements vary by program.
Can gig workers with multiple platforms qualify?
Yes — that's a core use case. The deposits across platforms are aggregated into one income picture.
Are 1099 loans only for primary residences?
No — many 1099 programs cover primary residences, second homes, and investment properties.
Skip the Bank Runaround.
Earning on 1099 with the deposits to prove it? Tell us your line of work — we'll match you to the right 1099 documentation path.
Get Your 1099 Loans Review
60 seconds. No obligation, no hard credit pull. NMLS #7861.
Guidelines change. Terms, pricing, and requirements vary by investor and are subject to change without notice. Examples in this article are illustrative only — not quotes, approvals, or commitments to lend. This article is educational, not loan advice. Confirm current guidelines with us before making an offer. NMLS #7861 · Equal Housing Opportunity.
