Who it is for
- Sales reps, realtors, nurses, drivers and other 1099 earners
- Contractors with one or two main payers
Typical 1099 Loans requirements
| Documents | 1 or 2 years of 1099s + YTD proof |
|---|---|
| Expense factor | Often 10% or less |
| Minimum credit | Typically 620–660 |
| Max LTV | Up to about 85–90% |
Figures are typical market ranges as of October 2026. Actual terms depend on the lender, your credit, the property and the program, and are confirmed on your Loan Estimate or term sheet.
How it works
- Total your 1099 income for 1–2 years.
- Apply the lender’s expense factor.
- Confirm the income continues with YTD statements.
Try the Home Affordability Calculator
Pros and cons
Advantages
- Ignores Schedule C deductions
- Simple paperwork
Trade-offs
- Non-QM pricing
Documents you’ll need
- 1099 forms
- YTD pay statements or bank deposits
- Proof of continuing work
1099 Loans FAQ
Can I get a mortgage with just 1099s?
Yes, through 1099-income programs that use the forms instead of tax returns.
How is 1099 income calculated?
Lenders total your 1099s for 1 to 2 years, apply a small expense factor (often 10% or less), and divide by 12 or 24 months for a monthly income.
Do I need 2 years of 1099 history?
Most programs want 1 to 2 years. Two years gets better pricing; one year can work with strong credit and reserves.
What if I have multiple 1099 payers?
That is fine. Lenders add them all together. Having several payers can actually look more stable than relying on one.
What credit score do I need?
Typically 620 to 660, with better rates at 680 and up.
How much down do I need?
Usually 10 to 15% for a primary home. Investment properties need more, typically 20 to 25%.
1099 loan vs bank statement loan?
If your 1099s clearly show your income, the 1099 program is simpler. If your income is spread across many sources or your 1099s understate it, bank statements may qualify you for more.
Can gig workers use 1099 loans?
Yes. Rideshare drivers, delivery drivers, freelancers and anyone else paid on 1099s can use these programs.
Do I need to show the work will continue?
Yes. Lenders want YTD pay statements or recent deposits showing the income is ongoing, not a one-time gig.
How 1099 Loans compare
| 1099 Loans | Bank Statement Loans | P&L-Only Loans | |
|---|---|---|---|
| Best for | Sales reps, realtors, nurses, drivers and other 1099 earners | Business owners and self-employed borrowers with heavy write-offs | Business owners with a CPA-prepared P&L |
| Down payment | , | , | , |
| Credit | Typically 620–660 | Typically 620–660 | Typically 640–680 |
| Income docs | , | , | , |
Typical ranges, your Loan Estimate or term sheet confirms actual terms.
Coming soon: a 2-minute walkthrough from our loan team.
Related programs
Bank Statement Loans
A bank statement loan is a non-QM mortgage that calculates self-employed income from 12 or 24 months of personal or business bank deposits instead of tax returns.
P&L-Only Loans
A P&L-only loan qualifies a self-employed borrower using a 12- or 24-month profit and loss statement prepared or signed by a CPA, EA or licensed tax preparer, with no tax returns.