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HOME LOANS              

The Home Loan designed for the unique lending needs of 1099 workers and independent contractors.

1099 House Icon unconventionallending 1099 income program derek bissen

Are you an independent contractor or employee earning 1099 wages? Have you tried applying for a mortgage with your local bank or credit union and been denied because you didn't show enough on your tax returns?


Most traditional home loans, such as Conventional, FHA, VA, Jumbo and USDA loans, do a poor job of serving applicants who earn their income through 1099 wages.  On a traditional home loan, the lender is restricted to using only the taxable portion of the applicant's wages for qualification purposes.  


Being a 1099 wage-earning employee means that you are simultaneously both an employee and a business owner when your file your income taxes.


Many 1099 wage earners hire a tax advisor to maximize the use of the self-employed rules in the US tax code to minimize their tax burden, which saves them thousands of dollars in taxes. (and who doesn't want to save money?)  Unfortunately since their taxable income is substantially reduced--a traditional lender is restricted to using only the taxable portion of your income for qualification purposes, often resulting in a frustrating process, and in many cases, a loan denial.


To put it another way, if the IRS thinks that you're 'broke' on your tax returns, then most lenders will probably see the same thing and that's rarely a good thing when you're trying to obtain a loan.



Using our 1099 Income Program, we see things differently.  Instead of your tax returns, we use your wages from your 1099 as the qualifying income for your new home loan, along with two basic verification steps.  



You must be working at the same business for at least 2 years or longer. We can calculate the income based on either a 2 year 1099 average, or simply on the most recent year's 1099.  

Let's look at the 2 year approach:

  1. Provide your 1099's for the most current 2 years for the same employer. We divide the total figure by 24 months.

  2. Your employer provides a letter confirming your date of hire, and that you have no mandatory job-related expenses.

  3. YTD Bank Statements (for the bank account where you deposit your payroll)

If everything checks out in steps 2 and 3, then we'll use the income in step 1 as the income for your new home loan.


If we are using the 1 year 1099 approach:

Simply go back to step one,  and divide the income on your most recent 1099 by 12 months. If steps 2 and three check out, then this becomes the income figure for your new home loan.

At a Glance

(effective 07/05/2023)

Minimum Down Payment

10% - for loan sizes ranging from $125,000 - $3MM

FICO of 740+


6 months up to $1MM loan size
9 months up to $2MM loan size
12 months up to $3MM loan size

15% - for loan sizes ranging from $125,000 - $3MM

FICO of 700+


3 months up to $1MM loan size
6 months up to $2MM loan size
9 months up to $3MM loan size


PMI (Private Mortgage Insurance)



Minimum mid-credit score



Min/ Max Loan Amount

$150,000 - $3MM


Loan Repayment Terms

30 years



30 Year Fixed Rate / 5/1 ARM /  7/1 ARM 

Prepayment Penalties

None for Owner-Occupied Homes or Second Homes.

Investment properties Only -  6 months interest on 80% of the original principal balance


Recent Housing Events

Min 24 months - OR-1 day minimum (See Loan Originator for details)


Max Seller Contributions

6% for Owner-Occupied or Second Homes

2% for Investment Homes



Escrows for Property Taxes and Home Insurance required



Primary Residence / Second/Vacation Home / Investment


Acceptable Property Types

Single Family, Townhome/ Villa/ Condominium/ Condotel or Non-Warrantable Condominium



Manufactured Homes, Modular Homes, Mobile Homes, Raw Land, Condotels, Log Homes, Dome Homes, Tiny Homes, Commercial Mixed-Use



We accept 1099 Independent contractors for Cannabis-based businesses.

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.


  • Low Down Payment- as little as 10% down required.
  • Flexible income calculation
  • Flexible credit score requirements– scores as low as 620. (loan size and reserve restrictions apply, see below)
  • Reserves: The amount of reserves depends on the credit score, LTV and the loan amount.
    • 10% Down Payment - for loan sizes ranging from $125,000 - $3MM
    • Middle FICO of 740+
      • Required Reserves:
        • 6 months up to $1MM loan size
        • 9 months up to $2MM loan size
        • 12 months up to $3MM loan size
    • 15% Down Payment - for loan sizes ranging from $125,000 - $3MM
    • FICO of 700+
      • Reserves:
        • 3 months up to $1MM loan size
        • 6 months up to $2MM loan size
        • 9 months up to $3MM loan size
  • We offer loan amounts as low as $100,000.  For loan sizes $100,000 - $124,000 - See Originator for program details
  • Gift Funds from a family member are acceptable (borrower must demonstrate that they have at least 5% of the purchase price and reserves of their own funds) Consult your Loan Originator
  • Interested Party Contributions (IPC's)- up to 6% of the purchase price.  This includes credits from sellers, real estate agents, builders, etc.)  For Investment Properties - the max contribution is 2% of the purchase price.
  • Occupancy: Owner Occupied, or Second/Vacation Home, or Investment Homes
  • Eligible Home types: Single family homes, Townhomes / Villas, 2-4 Unit Multi-family, condominiums (both warrantable and non-warrantable
  • Unacceptable home types: condotels, mobile homes, manufactured homes, modular homes, dome homes, tiny homes
  • Cannot be used to fund the construction costs of a new home. You can use this program to buy a home from a builder, as long as the builder is fronting the cost of construction, and you're buying the home from their inventory when the home is certified as ready to occupy.

Minimum Mid-credit score and Down Payments (for loan amounts ≤$1MM):

  • 740+  - Max 90% LTV  (10% Down Payment)
  • 700+  - Max 85% LTV  (15% Down Payment)
  • 660+  - Max 80% LTV  (20% Down Payment)
  • 620 – 659  - Max 75% LTV  (25% Down Payment)

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.