A 1099 loan qualifies you on 90–100% of the gross income on your 1099-NEC forms — not your net after deductions — with no tax returns. 620+ FICO, 10–15% down, ~1–2% over conventional. See Requirements or the Calculator.
1099 loan basics
What is a 1099 loan?
A non-QM mortgage for self-employed & contract workers that qualifies you on the gross income on your 1099-NEC forms — no tax returns, W-2s, or pay stubs.
How is my income calculated?
90–100% of gross 1099 income (modest expense factor) ÷ months covered = monthly qualifying income. Net after deductions isn't used.
Do I need tax returns?
No. Your 1099 forms + a YTD P&L stand in — so write-offs don't lower your qualifying income.
What is a 1099-NEC?
The IRS form that reports non-employee compensation — the pay independent contractors receive. It's the core document for this loan.
Is this the same as "self-employed" loans?
It's one type. The self-employed family also includes bank statement and P&L loans.
What's a YTD P&L and do I need one?
A year-to-date profit & loss statement showing current-year income; yes, most programs want one (often from your tax preparer).
Credit, down payment & income
What credit score do I need?
Most start at 620; some lenders want 700. Higher = better rate/LTV.
How much down payment?
Typically 10–15%; more down lowers your rate.
How long of a history?
Usually ~2 years of 1099 income (1 yr w/ prior experience).
What documents are required?
1–2 yrs of 1099-NEC, a YTD P&L, ID, credit report, recent bank statements. No tax returns.
Do my write-offs hurt me?
No — the lender uses gross, so deductions don't reduce qualifying income.
Are reserves required?
Usually yes — a few months of PITI, varying by lender and file strength.
Rates & alternatives
What are the rates?
~1–2% above conventional, similar to bank statement; non-QM, changes frequently. Rates →
1099 vs bank statement?
1099 uses forms; bank statement uses 12–24 mo of deposits. Clean forms → 1099; many sources/cash → bank statement.
1099 vs P&L?
P&L uses a CPA statement (business owner); 1099 uses your actual 1099 forms.
1099 vs conventional?
Conventional averages 2 yrs of filed net returns; 1099 uses gross & skips returns.
Can I refinance into conventional later?
Yes — many buy on 1099 now & refi once they have 2 yrs of filed returns.
Uses & process
Investment property?
Yes — primary, second, and investment all fit depending on the program.
Condos & 2–4 units?
Broadly eligible, including some non-warrantable condos conventional declines.
How long to close?
Often ~30 days; faster when your 1099s & P&L are ready up front.
Just left a W-2 job — can I qualify?
Often yes — 1099 covers the gap, especially w/ prior experience.
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.