1099 Mortgage Program

1099 Mortgage Loans

Independent contractor, gig worker, commission-only earner? 1 or 2 years of 1099 income qualifies — no tax returns needed, no Schedule C unpacking, no CPA letter required. Total Quality Lending applies a fixed 10% expense ratio and finances homes from $150K to $4M.

Get my 1099 mortgage quote(800) 304-1925

Why 1099 earners pick this program

  • Qualify on 1099s only — no personal or business tax returns required
  • Fixed 10% expense ratio — no Schedule C deductions reducing your qualifying income
  • 1- or 2-year 1099s accepted (or 1099 transcripts)
  • Up to 90% LTV on primary residence at the top FICO/loan tier
  • Loan amounts from $150K to $4M
  • Primary residence, second home, and investment property all eligible

How the 1099 mortgage works — start to close

The whole point of the 1099 path is that your qualifying income comes off your IRS 1099 totals — no business tax returns, no expense math, no Schedule C deep-dive.

  1. Step 1

    Send us 1 or 2 years of 1099s

    Upload your 1099-NEC, 1099-MISC, or 1099-K forms — or pull 1099 transcripts directly from the IRS. We accept either one or two years depending on which gives you a better qualifying income.

  2. Step 2

    We apply the fixed 10% expense ratio

    Your qualifying income equals the 12- or 24-month average of your 1099 totals minus a flat 10% expense factor. No CPA letter required, no Schedule C math, no surprises.

  3. Step 3

    We confirm income is ongoing

    If your 1099 reporting period ends more than 120 days before the Note date, we collect YTD documentation (recent paystubs, invoices, or current-year 1099s) to verify the income source is still active.

  4. Step 4

    Close on your home in 15–21 days

    Once the income is documented and the property appraises, we move to clear-to-close. Most 1099 mortgage borrowers close in under three weeks.

1099 mortgage — FAQs

Can I get a mortgage with just 1099s and no tax returns?

Yes. Total Quality Lending's Prime Time 1099 path qualifies borrowers on 1- or 2-years of 1099 income without requiring personal or business tax returns. We apply a fixed Fixed expense ratio: 10% to the 1099 totals to calculate your qualifying monthly income.

What if I'm new to 1099 income — do I qualify?

You need a minimum two-year self-employment history (per the 1003 application Employment section) to use the 1099 path. If you've been a W-2 employee transitioning to 1099 contractor work for less than two years, you may need to use a different documentation path or wait until you have a full two years of self-employment history.

How is 1099 mortgage income calculated?

Qualifying income = (sum of 1099 totals over 12 or 24 months) divided by the number of months, then reduced by a fixed 10% expense factor. The 10% is a flat, lender-applied ratio — you do not need a CPA letter or Profit & Loss statement to establish a different ratio. This makes 1099-only qualification simpler than the bank statement or P&L paths.

Can I buy a primary home, second home, or investment property with a 1099 mortgage?

Yes. The 1099 path is available on the same occupancies as the rest of the Prime Time program: Primary residence, Second home, Investment. Max LTV varies by FICO, loan amount, and occupancy — the headline 90% LTV applies to primary residence at the top tier.

Do I need YTD documentation in addition to my 1099s?

Only if your most recent 1099 reporting period ended more than 120 days before the Note date. In that case, we collect YTD documentation (recent paystubs, invoices, or a current-year 1099) to confirm the income source is still active. Loans closed within 120 days of the 1099 period typically don't need YTD docs.

What's the difference between a 1099 mortgage and a bank statement loan?

Both are alt-doc paths in our Prime Time program. The 1099 path uses your IRS-reported 1099 totals (with a fixed 10% expense ratio). The bank statement path uses 12 or 24 months of deposit data (with a 50% fixed ratio, a CPA-stated ratio, or a CPA-prepared P&L). 1099-only earners typically prefer the 1099 path because it's simpler and often results in a higher qualifying income.

Related alt-doc programs

Your 1099s tell the full story — let’s close on your home

Most 1099 mortgage borrowers close in 15–21 days. Talk to a TQL Loan Officer today.

Start my 1099 quote