Loans Self-employed and investors 1099 loans
1099 loans: qualify on your 1099 income
A 1099 loan figures your income from the 1099 forms your clients send you, less an allowance for expenses, instead of from your tax returns. It is built for independent contractors whose returns show less income after write-offs.
New to this loan? Start here: Buying when you are self-employed A 3-minute lesson
Who it fits
Independent contractors paid by one or a few clients on 1099 forms, whose tax returns show less income after expenses and write-offs than the forms do. Lenders still review your credit, your savings and the home.
Contract work is common here: building trades, guiding and outfitting, travel health care and seasonal tourism jobs. Each 1099 form covers a full year, so a slow winter and a busy summer count together.
What it costs, plainly
1099 loans usually cost more than agency loans: a higher rate, a larger down payment and more money in reserve after closing. They are still the right tool when your tax returns do not show enough income to qualify, and your 1099 forms do.
So we start with your tax returns, the way an agency loan counts 1099 income. If an agency loan works, it usually costs less. If it does not, a 1099 loan can, and once your returns show the income, a refinance into an agency loan is possible later.
Calculators and guides
Common questions
Am I self-employed if I get a 1099?
For taxes, money reported on a 1099-NEC is usually business income you report on Schedule C. Agency lenders treat it the same way and count it after your expenses, from your tax returns.
How many years of 1099s do I need?
Lenders ask for 1 or 2 years, and some want proof that the work is continuing, such as a current contract or recent payments.
What if I also have W-2 wages?
Some lenders count W-2 wages beside the 1099 income, each documented its own way. If either income qualifies you for an agency loan on its own, that is usually the less expensive route.
What if I also run a business with its own deposits?
A mixed income loan can count both: the 1099 income from your forms and the business income from your bank statements.