1099 Income Loans
Available in Georgia, Florida, South Carolina, Alabama, Tennessee
A 1099-only loan qualifies an independent contractor using their 1099 forms rather than tax returns or bank statements. We count 90% of the income shown on your 1099s as qualifying income. It suits contractors whose earnings are cleanly documented and who do not want a year of deposits averaged.
Who this is built for
Real estate agents. Insurance agents. Commissioned sales reps. Consultants. Traveling healthcare workers. Owner-operators. Anyone whose income arrives clean on a 1099.
Heavy write-offs do not disqualify you. We count 90% of your gross 1099 income regardless of what you deducted, so the write-offs that shrink your taxable income and sink a conventional application do not reduce what you qualify for here.
One year of self-employment is enough
You do not need a two-year track record. One year of 1099 income qualifies, and with a 720 score you can go to 90% LTV, which is 10% down.
Someone who left a W-2 job eighteen months ago to go independent is routinely told to wait another year by lenders who only look at tax returns. They do not have to.
| Credit score | Maximum LTV | Down payment |
|---|---|---|
| 720+ | 90% | 10% |
| 660+ | 80% | 20% |
1099 or bank statement: which one fits
It is not about how heavy your write-offs are. Both programs apply a fixed expense factor and neither one reads your Schedule C, so deductions do not hurt you either way.
The real question is where your income is documented. If your earnings show up on 1099s, the 1099 program counts 90% of them, which is almost always the stronger number. If a lot of revenue never touches a 1099 — cash deposits, multiple revenue sources, an S-corp paying you irregularly — bank statements capture what the 1099s miss.
Some borrowers qualify either way. We run both and use whichever produces the better number.
| 1099-only | Bank statement | |
|---|---|---|
| Documents | 1099 forms | 12 or 24 months of statements |
| Income basis | 90% of 1099 income | 50% of deposits, or a CPA-documented ratio |
| Effect of heavy write-offs | None | None |
| Minimum history | 1 year | 2 years, or 12 months with compensating factors |
Common questions
Do my business write-offs matter?
Less than they would on a conventional loan. We count 90% of your 1099 income as qualifying income rather than reading your Schedule C, so deductions that reduce your taxable income do not reduce what you qualify for.
How long do I need to have been self-employed?
One year of 1099 income is enough, and with a 720 credit score you can still go to 90% LTV with 10% down.
Can I use a 1099 loan for a second home or investment property?
Yes. The program is not limited to a primary residence.
This is not a commitment to lend. Rates, programs, and terms are subject to change without notice. All loans are subject to credit approval and property qualification.