This is not a commitment to lend.  Not all borrowers will qualify for the loan programs listed.  All program terms and conditions are subject to change and may be discontinued without prior notice.  Contact loan originator for program questions and scenarios.  

1099 INCOME

HOME LOANS

The Home Loan that addresses the unique lending needs of 1099 workers.

Most traditional home loans, like Conventional, FHA, VA, Jumbo and USDA loans, do a poor job of serving applicants who earn their income through 1099 wages.  Using traditional home guidelines, the employee is treated the same as a business own, due to the way they are able to file their Federal returns.  

Many 1099 wage earners use traditional business expenses as a means to reduce their income tax burden, saving them thousands of dollars in taxes. Unfortunately--since their taxable income is substantially reduced on their returns---a traditional lender will look at the tax returns and see very little "usable" income for qualification purposes, often resulting in a frustrating loan denial.

Using our 1099 Income Program, we see things differently.  Instead of your tax returns, we use your actual wages from your 1099 as the qualifying income for your new home loan.  

Here's how it works:

• You provide 1099’s for the most current 2 years for the same employer.
• YTD Paystub (or a written Employment Verification from your employer showing your YTD earnings)
• Your employer provides a letter that you have no mandatory job-related expenses.
• OPTIONAL – CPA/Tax Preparer Letter that states that your expense burden is lower than 50%.  

If they state that your expenses are 10%, then we can use 90% of your income…if the state that your expenses are 20%, then we can use 80% of your income and so on and so forth…

If you are a contractor or employee earning 1099 wages, we'd love the opportunity to answer all of your questions and review your options and see if this is the right loan program for you.

Remember, stop letting these banks tell you NO, when we have more reasons to say YES.

KEY FEATURES

• Low Down Payment- as little as 10% down required.
• Flexible income calculation
• flexible credit score requirements– scores as low as 640.  (620 on a case-by-case/ manual underwriting basis)
• Gift Funds from a family member are acceptable
• Allows for non-occupying co-borrowers (family can help co-sign on the loan to qualify)
• Interested Party Contributions (IPC's)- up to 6%  This includes credits from sellers, real estate agents, builders, etc.)  Investment Properties - the max contribution is 2%
• Owner Occupied, or Second/Vacation Home, or Investment Homes

Minimum Mid-credit score and Down Payments:

• 660+  - Max 90% LTV  (10% Down Payment)
• 640 – 659 – Max 80% LTV  (20% Down Payment)
• 620 – 639 – Max 70% LTV  (30% Down Payment)