Qualify with 1099 income when W‑2s don’t tell your story. Learn how 1099 programs work, docs you’ll need, and smart steps to compare options.
Published: November 2025
Independent earners—contractors, creators, agents, consultants—often see taxable income shrink after write‑offs. A 1099 mortgage program can look at your actual earnings patterns to help you buy or refinance.
How A 1099 Loan Works
• Income Basis: Approval is built around your 1099 forms and/or documented earnings history (often 1–2 years).
• Underwriting Approach: Some programs average 1099 income; others may use recent-year totals with stability checks.
• Use Cases: Purchase, rate/term refinance, or cash‑out for growth, debt consolidation, or renovations.
Who It’s For
• Contractors, sales pros, real‑estate agents, creatives, gig workers, rideshare drivers.
• Borrowers with strong revenue history but heavy deductions on tax returns.
• Households with variable or seasonal income who can evidence consistency.
What To Prepare
• 1099s (typically 1–2 years) and year‑to‑date earnings reports.
• Bank statements that align with your 1099s; proof of ongoing contracts, where applicable.
• Asset statements for down payment, reserves, and closing costs.
• Government ID, credit authorization, and (for purchases) your executed contract.
Pros & Considerations
Pros
• Tailored to non‑W‑2 income; reflects real earning power.
• Can open purchase/refi paths when standard underwriting falls short.
• Works alongside other programs (Bank Statement, DSCR for investors).
Considerations
• Terms, LTVs, and reserves may differ from conventional programs.
• Documentation must show stability and tie out deposits to income sources.
• Availability and guidelines vary by lender and state.
6 Smart Steps
1) Revenue Map — Gather your last 24 months’ 1099s and a month‑by‑month earnings snapshot.
2) Bank Alignment — Make sure deposits match your revenue narrative.
3) Seasonality Note — Write 2–3 sentences explaining big months or slow periods.
4) Reserves Plan — Document liquid assets and emergency cushion.
5) Program Comparison — 1099 vs Bank Statement vs W‑2 (if applicable).
6) Pre‑Approval — Lock your budget before you shop.
FAQs
Q: Do I need tax returns?
A: Some 1099 programs do not require them for income qualification; policies vary. Be prepared to provide them for background review.
Q: Can I combine 1099 and bank statement documentation?
A: In some cases, yes. We’ll pick the route that best represents your income.
Q: Are 1099 loans only for purchases?
A: No—refinance and cash‑out may be available depending on eligibility.
Cta
Ready to leverage your 1099s? Apply with New Wide Lending at /apply.
—
Disclaimer:
Subject to credit approval. Not a guarantee to lend. Programs, rates, and terms may change without notice. Licensed in CA, TX, FL & GA. CalDRE #01928649 • NMLS #1339357. Equal Housing Lender.