1099 Mortgage Loans
1099 mortgage loans are designed for self-employed borrowers, independent contractors, and freelancers whose income doesn’t fit traditional underwriting. Instead of relying on tax returns, these programs allow you to qualify using your 1099 income or bank deposits—making it easier to secure financing based on how you actually earn.
.png?width=350&height=450&name=House%20(6).png "House (6)")
What Is a 1099 Mortgage Loan?
A 1099 mortgage loan is designed for self-employed borrowers, independent contractors, and freelancers who earn income reported on IRS Form 1099 rather than a W-2. This often includes professionals like truck drivers, consultants, real estate brokers, insurance agents, and other commission-based or contract workers. Instead of relying on full tax returns, these programs allow you to qualify using your 1099 income or bank deposits—providing a more accurate view of your earning power.
Because many self-employed borrowers take deductions that reduce their taxable income, traditional mortgage guidelines can understate what they actually earn. 1099 loan programs address this by evaluating income based on gross earnings or cash flow, making it possible to qualify for a mortgage that aligns with your real financial profile.
Use Your 1099 Income. Buy The House. No Tax Return Limitations
At LendFriend, we work with a wide range of 1099 earners—borrowers whose income is strong, but whose tax returns don’t reflect it. If you’re writing off expenses or running income through a business, you’ve likely been told you “don’t qualify” for a mortgage based on traditional guidelines.
That’s where we come in.
Instead of relying on reduced taxable income, we help you qualify using your 1099 earnings or bank deposits—structuring your loan around how you actually earn. You don’t need to overhaul your tax strategy or limit your deductions just to get approved.
It’s a smarter approach for:
- Independent contractors and freelancers
- Truck drivers, consultants, and commission-based professionals
- Real estate agents, brokers, and insurance producers
- Electricians, plumbers, general contractors and handymen
We match you with lenders who understand self-employed income—and structure your file to reflect your real financial profile, not just what shows up on a tax return.
.jpg?width=700&height=700&name=Truck%20Driver%20(1).jpg "Truck Driver (1)")
.jpg?width=750&height=500&name=Texas%20House%20(1).jpg "Texas House (1)")
Why 1099 Borrowers Choose LendFriend
1099 mortgage programs are only as strong as how they’re structured. That’s where most borrowers run into issues.
At LendFriend, we work with multiple lenders that specialize in 1099 mortgage loans, allowing us to compare options and structure financing around your actual income, not just what shows up on a tax return. The result is clearer approvals, fewer surprises, and smoother closings—often in as little as 14 days.
1099 borrowers choose LendFriend because we offer:
- Deep experience structuring loans for self-employed and 1099 income
- Clear guidance on income calculation, expense factors, and qualifying options
- Access to both conforming and Non-QM loan programs
- Competitive pricing across multiple lenders
- A process designed to reflect real earnings—not deduction-reduced income
Most importantly, we help you avoid unnecessary stress—so you’re not buried in document requests or pushed into a smaller loan that doesn’t fit your income and unnecessarily decreases your home shopping budget .
Get Started With a 1099 Mortgage Loan
If you’re a contractor, freelancer, or self-employed borrower, a 1099 mortgage can offer a more flexible path to homeownership—when structured correctly.
Our process is built for speed and clarity. You’ll understand your buying power early, compare loan options side-by-side, and move forward with confidence when the right opportunity comes up. We walk you through how income is evaluated, explain your options clearly, and structure your loan to match your financial profile—so you can close quickly when it matters.
How to Buy a Home with a 1099 Mortgage
Getting a 1099 mortgage is about showing your income the right way and moving through the process efficiently.
Step 1: Understand What You Can Qualify For
Start by reviewing your 1099 income, credit, and assets so you have a clear picture of your buying power. This gives you a realistic range before you start looking at homes.
Step 2: Get Pre-Approved Using Your 1099 Income
Your income is evaluated using your 1099s or bank statements—whichever better reflects how you earn. This is where your loan is structured properly so you’re positioned for approval from the start.
Step 3: Find the Right Home
With a strong pre-approval in hand, you can shop confidently, make competitive offers, and move quickly when the right property comes up.
Step 4: Lock Your Loan and Move Through Underwriting
Once you’re under contract, your loan moves into underwriting. Because your income was structured correctly upfront, this step is typically smoother and more predictable.
Step 5: Close and Get the Keys
Final documents are signed, funds are transferred, and the transaction is completed.
Stronger Negotiating Position when Buying a Home
The equity in your current home is unlocked and used as a downpayment on your new home; meaning no sales contingency required! Sellers HATE sales contingencies. Without a sales contingency, your offer is stronger, increasing your chances of buying your next home with ease.
Get the Highest and Best Sale Price
Without feeling pressured to sell quickly, you can wait for the best offer on your current home. List your home at the best time, market it effectively, and attract more competitive offers. With no rush, you can negotiate better terms and get the highest selling price.
Reduced Stress
Don't worry about finding temporary housing or organizing multiple moves. Avoid the chaos of having to coordinate the sale of your current home and the purchase of a new one. Transition seamlessly from one home to another and reduce stress or anxiety, making the moving process more manageable and organized.
Time for Improvements
Make necessary renovations or updates to your new property before you move in. Painting, remodeling, or other improvements would be more challenging if you were already living there. Moving into a freshly updated home (instead of living in it during renovations) is just so much nicer!
See Why People Love Working With LendFriend
5/5 Star Reviews on Google, Zillow, and Experience.
-
I have nothing but great things to say about Eric Bernstein and his team at LendFriend! Truly white-glove service from beginning to end, making my home buying journey so much easier than ever before. Eric took the time to ensure I understood my options upfront and acted VERY quickly when I was asking for updates on the fly! I am so pleased with my experience overall and new loan, especially in this era of home buying. I feel as though I got a solid rate and understand how to take advantage of lower rates in the future, with their help of course! It was an absolute pleasure working with Eric and his all-star team - from the first phone call to closing day, I trusted the team to ensure everything went off without a hitch (which it did!). It was as seamless of a process as it could be and I always felt like I was a priority. Their communication is outstanding and dedication to delighting their clients is untouched. I highly recommend working with this group - you will be in wonderful hands too!!
Suzanne Peterson
Closed November 2025 -
Eric and his team was so amazing! They were so responsive and helped us come up with great strategies along the way! Eric would respond literally at any time of the day and they were able to help us manage a really quick close! We are so grateful for their support!!
Jo Reyes
Closed November 2025 -
Five stars for LendFriend! Michael and Morgan made financing our new home such a wonderful, seamless experience. They are true professionals who genuinely care about their clients.
Danielle Connally
Closed March 2026 -
LendFriend Mortgage delivered exceptional service to my husband and I with competitive rates, low fees, and a smooth, stress‑free process. Their team was professional, responsive, and incredibly knowledgeable, helping us first time home-buyers navigate everything for a conventional loan.
If you want a mortgage broker that’s trustworthy, efficient, and genuinely committed to your success, LendFriend is an outstanding choice.Heather Byrne
Closed March 2026 -
I shopped many mortgage lenders and LendFriend offered the best rates, costs, and customer service with a hands-on approach. I highly recommend LendFriend and a huge shout-out to Michael Bernstein for being phenomenal throughout the process.
Cory Olson
Closed February 2026 -
Lend Friend made the entire process simple and stress-free. Their team was professional, responsive, and took the time to explain everything clearly. I really appreciated the fast approval and fair terms. It felt like they truly cared about helping me, not just pushing paperwork. Highly recommend them to anyone looking for a trustworthy lending service!
Terence Priest
Closed July 2025
1099 Mortgage FAQs
Can you get a mortgage with 1099 income?
Yes. You can qualify for a mortgage using 1099 income instead of tax returns. Most programs require 1–2 years of 1099s, year-to-date income, and proof that your income is stable. In many cases, lenders will also review bank statements to confirm cash flow and consistency.
How do 1099 mortgage loans work?
1099 mortgage loans allow you to qualify based on your gross income or deposits rather than your tax returns. Instead of focusing on deduction-reduced income, lenders evaluate your 1099 earnings, income trends, and overall financial profile to determine how much you can borrow. In many cases, up to 90% of your 1099 income can be used toward qualifying, depending on the program and strength of your file.
Who are 1099 mortgage loans designed for?
These loans are built for self-employed borrowers and independent contractors, including:
- Truck drivers
- Consultants
- Real estate agents and brokers
- Insurance agents
- Freelancers and gig workers
- Business owners paid via 1099
If your income is strong but your tax returns don’t reflect it, a 1099 loan is often the better fit.
What are the requirements for a 1099 mortgage?
Most 1099 loan programs require:
- 620+ credit score (higher scores improve pricing)
- 1 year of 1099 income
- Year-to-date income verification
- 2-year history in the same line of work
- Down payment typically starting around 10%
Requirements vary by lender, which is why structuring matters.
What is the maximum loan amount for a 1099 mortgage?
Loan amounts can go up to $5 million for qualified borrowers. The maximum depends on your income, credit profile, down payment, and available reserves.
Is it harder to get a mortgage with 1099 income vs W2 income?
No—not when your loan is structured correctly. At LendFriend Mortgage, we work with lenders that evaluate 1099 income the right way, so you’re not limited by how your tax returns look. By using your 1099 earnings or deposits, we’re able to align your qualification with your actual income, making the process far more straightforward.
What's the difference between a 1099 Loan and a Bank Statement Loan?
1099 Mortgage vs Bank Statement Loans
Both 1099 mortgage loans and bank statement loans are designed for self-employed borrowers, but they qualify income differently.
A 1099 loan is based on your income forms. If your 1099s clearly reflect strong, consistent earnings, this is often the most straightforward way to qualify.
A bank statement loan is based on deposits. Instead of income forms, lenders analyze 12–24 months of bank statements to determine cash flow and usable income.
The right option depends on how your income shows up:
- If your 1099 income is consistent and accurately reflects what you earn, a 1099 loan is typically the cleaner path
- If your income varies, comes from multiple sources, or doesn’t fully show on 1099s, a bank statement loan may offer more flexibility
In many cases, both options are reviewed side-by-side to determine which approach provides the strongest approval and most competitive structure.