A 1099-Only loan is a Non-QM mortgage program designed for self-employed borrowers or independent contractors who receive income reported on IRS Form 1099 instead of traditional W-2 pay stubs.
It allows you to qualify based on your gross 1099 income, not tax returns — ideal for Realtors, consultants, truck drivers, freelancers, and other 1099 earners.

You may qualify if:

You’ve received consistent 1099 income for at least 2 years (some programs allow 1 year).

You can provide annual 1099 statements from your employer or clients.

You have a credit score of 620 or higher (680+ preferred for best rates).

You plan to purchase or refinance a primary, second home, or investment property.

Instead of tax returns, lenders use your last 1–2 years of 1099 forms and sometimes year-to-date (YTD) earnings statements to calculate average monthly income.
Some programs also accept bank statements to support your 1099 deposits.

Down payments typically range from 10% to 20%, depending on credit score, loan amount, and property type.

10% down: for strong credit (700+)

15–20% down: for moderate credit or higher loan amounts

Minimum scores vary by lender but typically:

620–640 minimum for standard approval

680+ for best rates and lowest down payment options

Yes. 1099-Only programs allow primary, secondary, or investment property purchases.
However, investment properties usually require a larger down payment (15–25%) and slightly higher rates.

They’re similar, but not identical:

1099-Only loans qualify you using 1099 income statements directly.

Bank Statement loans use 12–24 months of business or personal deposits to determine income.
Both are Non-QM (Non-Qualified Mortgage) programs that help self-employed borrowers qualify more easily.

You can use a 1099-Only loan for:

Single-family homes

Townhomes or condos

2–4 unit properties

Second homes or investment properties

Some programs also allow non-warrantable condos or mixed-use properties, depending on the lender.

Typically, no PMI (Private Mortgage Insurance) is required — even with less than 20% down.
Instead, rates are slightly higher than standard conventional loans to offset the added flexibility.

Loan amounts vary by lender but can often go up to $3 million or more, depending on credit and reserves.
Texas borrowers often use these programs for jumbo self-employed purchases that exceed conforming loan limits.

Yes. You can use a 1099-Only loan to:

Refinance your current mortgage for a better rate

Pull cash out for business, debt consolidation, or home improvements

Refinance from a bank statement or DSCR loan into a lower-rate 1099-Only structure

Generally, 2 years of 1099 income is preferred, but some lenders may approve you with 1 full year of 1099 earnings and a strong work history in the same field.

No tax returns or pay stubs required

Use your gross 1099 income to qualify

Ideal for contractors, freelancers, and commission-based earners

Available for primary, secondary, or investment properties

Fast, flexible underwriting compared to traditional loans