1099-Only Loan

A 1099-Only Loan is a mortgage or business loan designed for self-employed individuals, independent contractors, and gig workers who receive income reported on IRS Form 1099 instead of traditional W-2 wages. This type of loan allows borrowers to qualify based on their 1099 income rather than tax returns or pay stubs.

Who Can Benefit from 1099-Only Loans?

✅ Independent Contractors & Freelancers (Uber/Lyft drivers, consultants, graphic designers, etc.)
✅ Self-Employed Business Owners who pay themselves via 1099 instead of a salary.
✅ Real Estate Agents who earn commissions instead of W-2 wages.
✅ Gig Workers working on platforms like Upwork, DoorDash, or Instacart.
✅ Commission-Based Professionals (insurance agents, sales reps, etc.)
✅ Entrepreneurs with non-traditional income streams.

Key Features of 1099-Only Loans

✔ No Tax Returns or W-2s Required – Uses 1099 earnings for income verification.
✔ Flexible Qualification Criteria – Easier for self-employed individuals with variable income.
✔ Higher Loan Amounts – Based on gross earnings, not adjusted taxable income.
✔ May Require 1-2 Years of 1099 Income – Some lenders request 12-24 months of 1099 forms.
✔ Competitive Interest Rates – Rates depend on credit score, down payment, and income stability.
✔ Available for Mortgages & Business Loans – Can be used for home purchases, refinances, or business financing.

Documents Typically Required for a 1099-Only Loan

📌 Last 12-24 months of 1099 Forms (from all income sources)
📌 Bank Statements (to verify deposits and cash flow)
📌 Credit Report & Score (higher scores get better terms)
📌 Proof of Self-Employment (business license, client contracts, etc.)
📌 Debt-to-Income (DTI) Ratio Review (lenders may check expenses vs. income)

Why Choose a 1099-Only Loan?

🔹 No Need for Tax Returns – Ideal if tax deductions reduce your taxable income.
🔹 Quick & Simple Qualification – Less paperwork compared to traditional loans.
🔹 Better Loan Terms for Self-Employed Borrowers – Helps those with fluctuating income.