Who is eligible for a 1099 loan?

Self-employed borrowers paid on 1099-NEC — independent contractors, freelancers, gig workers, realtors, consultants, designers, and travel nurses — who have about a two-year history of 1099 income and whose tax returns understate their real earnings.

Do I have to be self-employed?

You need to be paid as an independent contractor on 1099 forms rather than as a W-2 employee. Many 1099 earners are technically self-employed, including sole proprietors and single-member LLCs, and gig and contract workers.

When is a bank statement loan a better fit than a 1099 loan?

When you have many income sources, a cash-heavy business, or deposits that exceed what your 1099s report. A 1099 loan fits contractors paid by a few payers who issue clean 1099s, while bank statement loans count everything that hits the account.

Can I qualify if I just left a W-2 job?

Often yes. A 1099 loan is designed to cover the gap after you switch to contract work, before you have two years of filed self-employment tax returns, especially if you have prior experience in the same field.

What property types are eligible?

Primary residences, second homes, and investment properties can all fit depending on the program, and condos and 2-to-4-unit properties are broadly eligible, including some that conventional financing declines.

1099 Loan Eligibility: Who Qualifies

1099 Loan Eligibility in California

If you're paid on 1099 forms — contractor, freelancer, gig worker, realtor — and your tax return makes you look like you earn far less than you do, this loan is built for you. The one question worth settling first: is a 1099 loan or a bank statement loan the better fit? Here's who qualifies.

1099-NEC earnersContractorsGig workers2-yr history

MBReviewed by Mike Basti, Mortgage Broker & Founder · NMLS #377740

Quick Answer

Eligible: 1099-NEC earners — independent contractors, freelancers, gig workers, realtors, consultants, travel nurses — with a ~2-year history (1 yr w/ prior experience). Better with a bank statement loan if you have many income sources or heavy deposits. See Requirements.

Who qualifies

✓ Ideal borrowers

Independent contractors across trades & professions
Realtors & agents with commission income
Gig workers — rideshare, delivery, app-based
Freelancers & consultants — designers, writers, advisors
Travel nurses & contract healthcare
Creators & influencers paid on 1099

✗ Better served elsewhere

W-2 employees → conventional / VOE
Many income sources / heavy deposits → bank statement
Business owners w/ CPA books → P&L
Under ~1–2 years of 1099 history & no prior experience

1099 vs bank statement — your paper trail decides: Both programs serve independent earners with no tax returns, so the real eligibility question is which one fits how you get paid. A 1099 loan is ideal when a few payers issue you clean 1099 forms — a realtor with broker 1099s, a contractor with a handful of general contractors, a consultant with steady clients. The 1099s are tidy, so the file is light. A bank statement loan fits better when you have many income sources, a cash-heavy business, or deposits that exceed what your 1099s capture, because deposits count everything that hits the account, not only what payers report. Some borrowers qualify for both — then we choose whichever produces more income and prices better. Settling this first saves weeks. Which fits me? →

Property & occupancy

Property	Eligible?
Primary residence	Yes — most common
Second / vacation home	Yes
Investment property	Yes
Condos & 2–4 units	Broadly eligible (incl. some non-warrantable)

Purchase and refinance both available.

1099 eligibility FAQs

Who's eligible?

1099-NEC earners — contractors, freelancers, gig workers, realtors, consultants, travel nurses — w/ ~2-yr history.

Must I be self-employed?

You need 1099 (not W-2) pay; many 1099 earners are technically self-employed.

When is bank statement better?

Many sources, cash-heavy, or deposits exceeding your 1099s.

Just left a W-2 job?

Often yes — 1099 covers the gap, esp. w/ prior experience.

Property types?

Primary, second, investment; condos & 2–4 units broadly eligible.

Reviewed by the licensing team at Save Financial, a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766) founded in 2009 and serving all 58 counties. Nothing here is tax advice.

1099 Loan Eligibility in California

On this page

Who qualifies

✓ Ideal borrowers

✗ Better served elsewhere

Property & occupancy

1099 eligibility FAQs

Paid on 1099s and told you "don't earn enough"? You almost certainly do.

1099 Loan Eligibility in California

On this page

Who qualifies

✓ Ideal borrowers

✗ Better served elsewhere

Property & occupancy

1099 eligibility FAQs

Keep learning

Paid on 1099s and told you "don't earn enough"? You almost certainly do.