1099 Income Loan

Overview

1099 income loans are tailored to independent contractors who are paid via 1099 — real estate agents, freelancers, consultants, gig workers, and so on. Instead of averaging your net taxable income from tax returns, the lender uses your gross 1099 earnings (with a small expense factor) over 12-24 months.

This avoids the problem where a contractor's write-offs make their tax returns look thin even though their actual cash flow is strong. Like other Non-QM programs, expect slightly higher rates than conventional but a much higher chance of qualifying.

Who it's for

Independent contractors and freelancers
Real estate agents, insurance agents, financial advisors
Gig economy workers with consistent 1099 income
Self-employed borrowers with high deductions on Schedule C

What's typically reviewed

12-24 months of 1099s
Year-to-date earnings statement or invoices
Credit profile
Verification of continuing income source
Down payment and reserves

This is a general description, not a guarantee of approval. Specific requirements vary by lender and program. Final qualification is determined during underwriting.

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