1099 Income Loans
Qualify directly off your 1099s — for independent contractors and gig earners who are paid as non-employees.
Built for independent contractors, commissioned reps, and gig-economy earners who receive most of their income on 1099s.
You get a stack of 1099s every January instead of a W-2. Maybe you're a real estate agent, a traveling nurse on contract, a rideshare-and-delivery earner, or a freelance creative with a handful of steady clients. Your income is real and documented — the IRS certainly thinks so — but the moment you write off your mileage, gear, and home office on Schedule C, your tax return shows a number that doesn't reflect what you actually earn.
A 1099 income loan lets you qualify off the 1099s themselves. Instead of dragging the underwriter through two years of returns and a transcript, the lender uses one to two years of your 1099s to establish qualifying income. It is one of the cleanest paths for contractors whose income is well-documented on those forms but obscured by legitimate deductions.
July 2026 Update
July 2026 update: 1099-based qualification remains a core non-QM offering, with investors accepting either one or two years of 1099s depending on your profile. This is a strong fit for the growing 1099 workforce — agents, healthcare contractors, and platform earners — who previously got pushed into full tax-return underwriting.
Expect the underwriter to apply an expense factor to your 1099 gross to arrive at qualifying income, and to want the 1099s to reconcile with recent deposits. Program availability and guidelines are subject to change without notice.
Program at a glance
The real guideline parameters for this program. Guidelines subject to change without notice.
How qualifying works
How 1099 income is calculated
The lender takes the gross income reported on your 1099s over one or two years and applies an expense factor to approximate your net qualifying income — because a contractor has some cost of doing business even if it is smaller than a full operating company. The remaining figure becomes the monthly income the loan is underwritten against.
Using two years generally produces an average, which protects you if one year was unusually strong or weak. A single strong recent year can sometimes stand on its own with the right investor. We look at both and use the presentation that most accurately reflects your earning power.
Why 1099s are cleaner than bank statements for some borrowers
If your income arrives as a handful of large 1099 payments rather than hundreds of small deposits, qualifying off the forms is simpler than reconciling a year of bank activity. There is a single documented gross figure to work from, and the IRS copy of the 1099 is hard to dispute. Borrowers with commingled personal and business banking often find the 1099 path avoids a lot of deposit-by-deposit explanation.
What you bring to the table
Plan on one to two years of 1099s, evidence of continued work in the same line (a current contract, client letters, or recent deposits that tie to the 1099s), plus the standard asset verification for down payment and reserves. Credit is pulled, and because this is an ability-to-repay loan, the underwriter confirms the income is stable and likely to continue.
1099 Income Loans vs. a conventional loan
Here is how a 1099 income loan compares to the conventional route — and to its closest sibling, the bank statement program.
| Feature | 1099 Income Loans | Conventional loan |
|---|---|---|
| Income proof | 1 to 2 years of 1099s | Two years of tax returns + 4506-C |
| Effect of Schedule C write-offs | Judged on 1099 gross, not net taxable income | Write-offs reduce qualifying income |
| Minimum FICO | 660+ | Typically 620+ |
| Loan amounts | Up to 90% to $1M · 85% to $3M | Conforming / high-balance limits |
Compare with related programs
If your income is not fully captured on 1099s — cash-heavy or many small clients — bank statements may reflect it better.
If you are actually a contractor paid consistently by one employer who will verify your work, a written verification of employment can be even simpler.
1099 Income Loans — frequently asked questions
Can I get a mortgage with just my 1099s?
Yes. This program qualifies you on one to two years of 1099s instead of tax returns. No 4506-C transcript is required. The lender still verifies assets, credit, and ability to repay.
How many years of 1099s do I need?
One to two years, depending on the investor and your profile. Two years lets the underwriter average your income; a single strong year can work in some cases.
What credit score is required?
The program starts at a 660 FICO. Higher scores can improve your loan-to-value tier and pricing.
Is my qualifying income my full 1099 total?
No — an expense factor is applied to your 1099 gross to approximate net income, since contractors have some business costs. The result is your qualifying figure.
How much can I borrow?
Up to 90% loan-to-value to $1M and 85% to $3M. Larger loans require a larger down payment.
Can real estate agents use this program?
Yes. Agents are a classic fit because commission income is documented on 1099s but often reduced by business write-offs on the return.
Can I buy an investment property with a 1099 loan?
Yes. The program allows primary residences, second homes, and investment properties.
What if my income jumped a lot this year?
We can look at a one-year presentation to capture recent growth, or a two-year average for stability. We use whichever the guidelines allow and which reflects you most accurately.
Do gig and platform earners qualify?
If your platform income is reported on 1099s and shows continuity, it can be used. Some gig earners fit the bank statement program better — we compare both.
Can I do a cash-out refinance?
Yes, cash-out is available on this program subject to the applicable loan-to-value limits.
Talk to the Cook Brothers about your file
We shop your scenario across 25+ non-QM investors to find the guideline that fits how you actually earn. Start with the two-minute qualifier or reach out directly.
Non-QM loan programs. Alternative income documentation required. All loans subject to underwriting approval, income/asset verification, and ability-to-repay determination. Not all applicants will qualify. Program availability and guidelines subject to change without notice.