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1099 Income Loan

For 1099 earners. No tax returns required.

  • Loans up to $3 million with a minimum of $150,000
  • Purchase and cash-out or rate-term refinance
  • Owner-occupied, second homes, and investment properties
  • No tax returns are required
  • Two years' seasoning for foreclosure, short sale, bankruptcy or deed-in-lieu
  • 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 and issued in the borrower’s personal name
  • Borrower must be self-employed working in the same line of work for at least two years

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

Can you get a mortgage with 1099 income?
Yes, 1099 earners can use 1099 earning statements or bank statements to qualify for a loan. This loan option helps those who cannot verify income based on tax returns. Typically, one to two years of the most recent statements are required and the borrower must be employed with a single employer for two years.
Is 1099 earned income considered self-employed income?
Yes, income reported on form 1099-MISC in box 7 is considered non-employee compensation or self-employment income. Contact an Angel Oak Mortgage Solutions account executive for more details on qualifications.
How is income verified for a self-employed borrower?
Year to date earning are verified from 1099 earning statements, bank statements, and / or paystubs. An Angel Oak Mortgage Solutions account executive can provide the details on submissions.

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.

Additional Program Options

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