Short answer: A 1099 loan qualifies you on the income reported on your 1099 forms, instead of tax returns. It fits independent contractors, commissioned earners and gig workers whose write-offs shrink the income on their returns. Most programs use one or two years of 1099s, and some subtract an expense factor. You can use it for a primary home, a second home or an investment property in Florida, Georgia, Michigan, North Carolina, Tennessee or Texas. The lender still verifies your income and your ability to repay.
How lenders figure your 1099 income
The underwriter totals your 1099 income for the most recent year, or averages two years. Some programs then subtract an expense factor, a set percentage treated as the cost of doing business. The result divided by 12 is your monthly qualifying income. Proof of current income, like recent bank statements or a year-to-date statement from the company that pays you, shows the income continues. Try it in the 1099 income calculator.
Who a 1099 loan fits
• Independent contractors and consultants
• Real estate agents, loan officers and insurance agents paid on commission
• Travel nurses and other contract healthcare workers
• Rideshare, delivery and other gig workers with a steady record
Documents for a 1099 loan
✓ 1099 forms for the last one or two years
✓ Proof of current income: recent bank statements or a year-to-date pay statement
✓ Proof of two years in the same line of work
✓ Photo ID and permission to pull your credit
✓ Statements for the accounts holding your down payment and reserves
✓ Purchase contract, or your current mortgage statement for a refinance
What still counts
• Credit: each program sets a minimum score.
• Steady income: a big drop from last year to this year can lower the amount that counts.
• Down payment and reserves: many programs ask for more than a conventional loan.
• Ability to repay: for a home you live in, the lender confirms the payment fits your verified income.
1099 loans in Florida and Georgia
The program rules match in both states. In Florida, condo approval and wind and flood insurance come up often and can change your housing payment. In Georgia, an attorney conducts your closing and you sign a security deed. FLO Mortgage arranges 1099 loans through investor programs from our Flagler Beach office, by phone or online.
Compare every program on our non-QM loans page, including bank statement loans and profit and loss statement loans.
1099 loans: common questions
Can I qualify with only one year of 1099s?
Some programs accept one year of 1099s if you've worked in the same line of work for two years. Others want two years. A licensed loan officer can check which fits your history.
What if I get 1099s from more than one company?
That's common. The lender adds up the qualifying 1099 income from each payer, as long as you can show it continues.
Does a 1099 loan subtract my business expenses?
Some programs apply a set expense factor instead of the write-offs on your tax return. That usually leaves more qualifying income than your return shows.
Can I combine W-2 and 1099 income?
Often, yes. Your W-2 income is documented the usual way, and the 1099 income is added on top.
Can I buy my primary home with a 1099 loan?
Yes. 1099 loans can finance a primary home, a second home or an investment property.
Paid on a 1099 and ready to buy?
A licensed loan officer can review your 1099s and tell you which program fits. Prefer to talk? Call (386) 882-9980.
This page is general education, not a commitment to lend or an offer of specific terms. 1099 loans are non-QM loans offered through investor programs. They are not government-backed and are not qualified mortgages, and their terms and costs differ from conventional loans. Available on properties in Florida, Georgia, Michigan, North Carolina, Tennessee and Texas. All loans are subject to credit approval, income and asset verification, appraisal, underwriting guidelines, property eligibility and program availability. Not all applicants will qualify. Requirements vary by investor program and may change. FLO Mortgage is licensed as a mortgage lender in Florida (MLD2621) and Georgia (#1835856), Company NMLS #1835856; Broker Owner Joy McCoy Flores, NMLS #1096400. Equal Housing Opportunity. Licensing & Disclosures.