Can I use 1099 income to qualify?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Yes. You can qualify with 1099 income using two years of tax returns, or through a 1099 income loan that uses your gross 1099 earnings minus a flat expense factor — no full returns required.
This helps contractors whose deductions shrink their net income. We'll compare both methods and use the one that yields the higher qualifying income.
1099 income works
Yes, you can qualify with 1099 income. Lenders treat it like self-employment and usually want a two-year history so they can average your earnings and confirm they are stable.
They factor in your business expenses, so your net 1099 income is what typically supports the loan on a standard program.
The 1099 loan advantage
If write-offs shrink your net income, a dedicated 1099 income loan can qualify you on your gross 1099 earnings instead, which often means a bigger loan.
We know how to present 1099 income for the best result. Reach out and we will run both standard and 1099-based options.