What is a 1099 income loan?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
A 1099 income loan qualifies independent contractors using their 1099 forms — applying a flat expense factor to gross earnings — rather than full tax returns. It's a clean option for those paid on 1099s.
It captures more income than returns when you take large deductions. The rate is modestly higher than conventional. We'll calculate your qualifying income straight from your 1099s.
Built for contractors
A 1099 income loan qualifies you using your 1099 forms instead of full tax returns. It is designed for independent contractors, freelancers, and gig workers who receive 1099s rather than W-2s.
The lender uses your gross 1099 income, minus a set expense factor, which often qualifies you for more than a tax-return-based loan.
Why it helps
Because it skips the write-offs on your tax return, a 1099 loan frequently boosts your borrowing power. It also simplifies the paperwork for contract workers.
If you live on 1099 income, this loan may be your best fit. Apply now and we will compare it against your other options.