Are you an independent contract or wage earner making 1099 Income? Have you been in business or working for the same employer for at least two years? And have you been denied for a mortgage simply because you “didn’t show enough income” on your tax returns?
It just isn't fair. You work hard—and you deserve to buy a home just like everyone else.
Unfortunately, many banks routinely deny home loans to perfectly well-qualified applicants, just because of your tax returns. For many self-employed borrowers and independent contractors, using tax returns to qualify for a mortgage eliminates most banks and mortgage lenders from your list of mortgage options.
If you’re tired of this, and looking for a solution, look no further.
When you're an independent contractor, you need mortgage loans designed for your type of income. One such mortgage program is called a 1099 Income Program, which is also known as a 1099 Mortgage, 1099 Income Loan, or a 1099 Home Loan.
THE 1099 INCOME PROGRAM IS IDEAL FOR INDEPENDENT CONTRACTORS AND INDIVIDUALS WHO EARN 1099 WAGES, who have been working for the same employer for the most recent 24 months or longer, and who may be having difficulty qualifying for a traditional mortgage loan because there isn’t enough taxable income found on your tax returns.
This program is idea for:
THE 1099 INCOME PROGRAM is a mortgage loan that works much like any other Conventional mortgage or FHA loan you may have encountered, EXCEPT one key difference: the income calculation approach that the lender uses for qualification. For instance, with a traditional mortgage, the lender uses the income shown on your tax returns; but on a 1099 income program, the lender counts up to 100% of the income on your 1099's as the income for qualification.
Here’s the basic breakdown of how a lender counts the income for this program:
...AND THE RESULT IS THE MONTHLY UINCOME THE THE LENDERS USES FOR QUALIFICATION PURPOSES.
Yes, it’s that simple---and this approach gives the lender a much better idea of your true employment income vs the tax return approach found with a traditional home loan.
The only IRS form you need to need to complete is a 4506-C transcript request to show that you filed your 1099's with the IRS. *(the lender does NOT request transcripts for your entire income tax returns---the lender ONLY requests the transcripts of the 1099's themselves)
STAY CURRENT! Loan Programs can change over time. To get the most current up-to-date information on the 1099 Income Program, check out our 1099 INCOME PROGRAM PAGE or DROP US A LINE HERE.
If you’re a successful 1099 wage earner or independent contractor, it didn’t happen because you took “NO” as answer---so stop letting these big banks and credit unions tell you NO, when we have more reasons to say YES.
Yours in successful homeownership,
Unconventional Lending Program Director
About the Author:
Derek Bissen is a licensed Mortgage Loan Originator with over 25 years of experience in the industry. Derek is a self-employed lending expert who is known for his ability to work with borrowers who have substantial wealth and non-traditional lending needs. He is a creative loan structurer and specializes in portfolio lending, asset-based lending, bank statement lending, as well as traditional loans such as Conventional, FHA, VA, and first-time homebuyers.
Derek's expertise in the mortgage industry is unparalleled. He is a trusted advisor to his clients, providing them with customized loan solutions that meet their unique financial goals and needs. His vast experience and knowledge make him a valuable asset to anyone looking to purchase a home or refinance their existing mortgage.
As a highly-experienced loan originator and author, Derek is committed to sharing his knowledge with others. He regularly provides valuable insights and advice to readers looking to navigate the complex world of mortgage lending. His articles are informative, engaging, and backed by years of hands-on experience.
With his wealth of knowledge and dedication to his clients, he is the go-to source for all your mortgage lending needs. If you're looking for a reliable and trustworthy mortgage expert, contact Derek today to learn more about how he can help you achieve your financial goals.