1099 Loans — Qualify Using Your 1099 Income

You earn more than your tax return admits. A 1099 loan lets independent contractors and freelancers qualify on their full 1099 income instead of a deduction-reduced taxable number.

What Is a 1099 Loan?

A 1099 loan is a non-QM mortgage that verifies your income using 1099 forms (1099-NEC, 1099-MISC, 1099-K) rather than full tax returns. For self-employed earners with a healthy top line but lots of write-offs, this is often the difference between “approved” and “declined.”

Who It's For

Requirements at a Glance

• 1–2 years of 1099 history (longer = better terms)
• Year-to-date income verification (recent 1099s, bank statements, or check stubs)
• Employment/income verification via 1099 transcripts, a CPA letter, or WVOE
• Supporting docs (bank statements or pay stubs) usually within 120 days
• Credit scores from ~620
• Debt-to-income ratios up to ~50%

How 1099 Income Is Calculated

Lenders generally take your total 1099 income over the qualifying window — say, 24 months — divide it into a monthly average, and apply program guidelines. The key advantage: you're measured on gross earnings, not post-deduction profit.