1099 Income Loan
- Loans up to $3 million with a minimum of $150,000
- No tax returns are required
- Most recent one or two years 1099 plus year to date earning statement allowed
- Year to date earnings are verified from earning statement, paystubs, or bank statements
- 1099s must be from a single employer
- Borrower must be self-employed working for the same employer for two years
- Owner-occupied, second homes, and non-owner occupied
- Purchase and cash-out or rate-term refinance
- Two years seasoning for foreclosure, short sale, bankruptcy or deed-in-lieu
- Loan amounts greater than or equal to $1,500,000, a borrower paid second appraisal must be obtained
- 40 year interest only available
Min Fico
640
(Up to 75% LTV)
Max LTV
90%
(Minimum 720 FICO)
Our 1099 income loan option is for underserved self-employed borrowers who are 1099 workers. Many freelancers, contractors, gig economy workers or other self-employed borrowers who file using W-9s cannot qualify for a mortgage under Agency guidelines.
These underserved borrowers can use 1099 earning statements in lieu of tax returns to qualify for a mortgage. Our 1099 Income loan is an alternative loan solution that helps many self-employed 1099 earners achieve homeownership.
FAQ’s
What is the benefit to originators who use non-QM loan products?
Originators who utilize non-QM offer a service that their competition may not offer. They become an expert and go-to for the non-QM borrower. The benefit is increased referrals and business growth despite changes in the market. Continue to increase your volume each year regardless of fluctuating interest rates, tighter Agency guidelines, and a slowing refinance market.