1099 Only Loans For Self Employer Borrowers

What are 1099 Loans?

These are mortgage loans designed for individuals who receive income reported on 1099 forms, such as freelancers, independent contractors, and gig workers.
These individuals often don't have the traditional W-2 income that conventional lenders prefer.
1099 loans allow these borrowers to use their 1099 income to qualify for a mortgage.
Key Characteristics:

Income Verification:
Lenders will typically review your 1099 forms from the past 1-2 years.
They may also require additional documentation, such as bank statements or year-to-date earnings statements.
Non-QM Loans:
These loans often fall under the category of non-Qualified Mortgage (non-QM) loans. This means they don't adhere to the strict guidelines of conventional mortgages.
Because of this, they may carry higher interest rates and have different qualification requirements.
Requirements:
Credit score requirements.
Down payment requirements, which may be higher than conventional loans.
Documentation of consistent self-employment income.
Who Benefits from 1099 Loans?

Freelancers
Independent contractors
Gig economy workers
Self-employed professionals

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