MBReviewed by Mike Basti, Mortgage Broker & Founder · NMLS #377740
Quick Answer
You generally need: 1–2 years of 1099-NEC forms + a YTD P&L, a 620+ FICO, 10–15% down, and reserves. Income = 90–100% of gross 1099 earnings. No tax returns. See Eligibility.
The core requirements (2026)
| Requirement | Typical |
|---|---|
| Income proof | 1–2 yrs 1099-NEC + YTD P&L |
| Income used | 90–100% of gross (modest expense factor) |
| Credit score | 620+ (some lenders 700) |
| Down payment | 10–15% |
| Tax returns | Not required |
| History | 2 yrs (1 yr w/ prior industry experience) |
| Reserves | Documented, varies by lender |
| Rates | ~1–2% over conventional |
Illustrative for 2026; 1099 is non-QM, set by individual specialty lenders. Not an offer. See how rates price →
How your income is calculated — gross, not net
Gross, not net — that's the entire point of this loan: Conventional underwriting takes your 1099 income and subtracts every Schedule C deduction, often cutting your qualifying income by 30–50% — the same smart write-offs your CPA recommends end up locking you out of a mortgage. A 1099 loan does the opposite: it uses 90–100% of the gross income printed on your 1099 forms, applying only a small expense factor, and never averages your net. A realtor who grossed $150,000 but showed $92,000 after deductions qualifies on roughly the full $150,000, not the $92,000. That difference is often the difference between "denied" and "approved for the home you actually want." You stop being penalized for legitimate tax planning. See your gross number →
Documents checklist
| Document | Purpose |
|---|---|
| 1099-NEC forms (1–2 years) | Gross income |
| Year-to-date P&L | Current-year income (often from your tax preparer) |
| Government photo ID | Identity |
| Credit report | FICO & history |
| Bank statements (recent) | Reserves / stability check |
| Evidence of ongoing work | Confirms income is sustainable |
Note: a 1099 loan uses the 1099 forms themselves — not 12–24 months of bank statements — which is why the file is lighter than a bank-statement loan.
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 from offices in Newport Beach and Marina del Rey. Nothing here is tax advice.