Guide · Self employed mortgages
1099 Contractors and Agents: How to Qualify for a Mortgage
Real estate agents, consultants, nurses on contract, truckers, rideshare and delivery drivers: if you get paid on a 1099, you're self employed to a lender. Here's how to qualify without giving up your write offs.
The usual way: tax returns
A standard loan uses your Schedule C, usually for two years. The lender starts with your net profit, then adds back depreciation and business use of your home. The problem is mileage, phone, marketing and everything else you deduct comes off before the lender ever sees your income.
The 1099 only option
Some programs skip tax returns and use your 1099 forms instead. The lender takes the gross amount on your 1099s and applies a set expense factor, which is often much smaller than what you actually write off. For a lot of contractors that means more qualifying income than the return shows.
- Usually one or two years of 1099s, from the same line of work
- The payers are verified, and the lender may confirm you still work with them
- Rates and down payment are usually higher than a conventional loan
Bank statement option
If you have income from a lot of small payers, or cash and card payments, a bank statement loan may fit better. The lender uses 12 or 24 months of deposits. How bank statement loans work.
New to 1099?
If you went from W2 to 1099 doing the same job, like a nurse moving to travel contracts or a loan officer going independent, some programs need less than two years of 1099 history. Talk to me before you assume you have to wait.
Real estate agents
Commission income goes up and down, and agents write off a lot. I work with agents every day and know how underwriters read your income. If your Schedule C is thin after a big marketing year, the 1099 or bank statement route is usually the answer.
Common questions
I just switched from W2 to 1099. Can I still buy?
Possibly. If you're doing the same work, some programs count your W2 history toward the two years. Let me look at it before you wait.
Do I need two years of 1099s?
Most programs want two, some accept one. It depends on your history in the field.
Want me to look at your numbers?
Free and confidential. I'll tell you which program fits and what you'd qualify for, and I'm happy to loop in your CPA. Hablo español.
More guides
- Getting a Mortgage as an S Corp Owner: How Lenders Read Your K-1
- Real Estate Investors: DSCR Loans and How Depreciation Affects Qualifying
- Using Business Funds for Your Down Payment
- Buying a House While Your Taxes Are on Extension
General information, not tax or legal advice. Program terms vary by lender and change often. Not every borrower will qualify.