This program analyzes personal or business bank statements to calculate average monthly income. It’s ideal for borrowers with variable income streams, commission-based earnings, or significant business deductions.
Bank statement loans can be used for primary residences, second homes, and investment properties, depending on program guidelines. While interest rates and down payment requirements may be slightly higher than conventional loans, the flexibility in documentation makes this option highly valuable for self-employed borrowers.
1099 Loans are designed for independent contractors, freelancers, consultants, and self-employed professionals who receive income reported on a 1099 instead of a traditional W-2. If your tax returns don’t fully reflect your true earning potential due to write-offs or business deductions, a 1099 loan program may offer a more flexible path to homeownership.
May allow you to qualify for more than you would with standard income documentation.
Perfect for borrowers whose income is strong but heavily offset by business deductions.
Qualify using 1–2 years of 1099 forms rather than traditional tax return calculations.
Available for various property types depending on program guidelines.
Access fixed or adjustable-rate loan programs tailored to self-employed borrowers.
1099 loan programs offer flexible financing solutions for real estate investors looking to purchase or refinance income-producing properties.
Find clear answers to common questions about 1099 mortgage programs. Whether you’re an independent contractor, freelancer, or self-employed professional, this section helps you understand income qualification, documentation requirements, credit guidelines, and property eligibility — so you can move forward with confidence.
A 1099 loan is a mortgage program designed for self-employed borrowers, independent contractors, and freelancers who receive income reported on 1099 forms instead of W-2s.
Lenders typically review 12–24 months of 1099 forms and may apply an expense factor to determine qualifying income.
In many 1099 loan programs, full tax returns are not required for income calculation.
Down payment requirements vary by program, credit profile, and property type.
Minimum credit score requirements vary by lender, but stronger credit typically helps secure better rates and terms.
Rates may be slightly higher due to the alternative documentation structure, but they remain competitive and are designed to provide flexibility for self-employed borrowers.
