Self-Employed · 1099 Income

1099 Mortgage Loans: Qualify on the Gross, Not the Leftovers

Your 1099 says what you were paid. Your tax return says what's left after write-offs. A class of mortgage programs underwrites the first number. Here's how they work and who they fit.

The mechanism

1099 programs qualify on the gross amount on Form 1099-NEC/MISC — the figure before your deductions. Published treatment: 100% of gross on PRMG's Non-QM profile; 90–100% at Griffin Funding. One-year and two-year variants exist: two years are totaled and divided by 24; one year by 12. Expect the file to include 2–3 months of bank statements showing deposits that match the 1099s, and a year-to-date P&L if you're applying mid-year.

  • History: most programs want 2 years of self-employment history — but a 1-year path exists with prior experience in the same line of work (Griffin states this explicitly).
  • Credit: published minimums cluster at 620–660.
  • Down payment: typically 10–20%; reserves of 3–12 months of payments.
  • Ratios: DTI caps run ~43–55% depending on program and profile strength.

All parameters source-reported from published lender programs, fall 2026 — the sources' guidelines, not a quote or a promise. Investors vary; guidelines change.

Who this fits

Contractors, consultants, gig professionals, and salespeople paid on 1099 whose gross is strong and whose Schedule C is engineered small. If your 1099 gross and your deposits agree with each other, this is often the cleanest count of the five — no expense-factor negotiation, no two-year averaging of returns.

Our take

The 1099 door is the most underused one in the hub, because banks don't sell it and borrowers don't know to ask for it by name. If a lender has only ever asked for your tax returns, they've only ever seen the smallest version of your income. The gross on the form your clients already send the IRS is a number underwriting can use — at the right investor.

"If you're a veteran looking to buy a home, I can't recommend Douglas highly enough. As a fellow Marine veteran, he truly understands every aspect of the VA home loan process and knows how to navigate it from start to finish. His knowledge, professionalism, and commitment to serving veterans are second to none. What really sets Douglas apart is that he's much more than just a mortgage loan officer. He works seamlessly with your real estate agent to make sure everyone is aligned and the entire process runs smoothly. You never feel like you're just another transaction. The best part is that once you become part of Douglas's ecosystem, you never really leave it. He continues to be a trusted resource long after closing, providing guidance, connections, and support whenever you need it. It's not just a mortgage — it's a lifelong relationship and an incredible asset to have in your corner. If you're looking for someone who genuinely cares about your success and has the expertise to get the job done right, Douglas is the person to call. Semper Fi!"

— Jason Haglund, Google review, July 31, 2026 · Read more reviews

Questions contractors ask about 1099 loans

Can I buy with only one year of 1099 income?

Yes on published paths — one year of 1099s divided by 12 — typically with documented prior experience in the same line of work. Two years of forms divided by 24 is the standard variant and often prices better.

Do lenders count my gross 1099 or the net?

On 1099 programs: the gross — 90–100% of it per published guidelines. That's the entire point of the program family, and the opposite of the agency Schedule C method.

What else goes in the file?

Bank statements (2–3 months) evidencing deposits consistent with the 1099s, possibly a YTD profit-and-loss mid-year, and standard credit/asset documentation. No tax returns are used to qualify income on these paths.

Your next step

Bring the 1099s; get the real count. One review tells you whether gross-1099, deposits, or another door wins for your file.

Prefer to talk it through? Call Douglas direct: (904) 517-4049.
Douglas Wilkerson, Mortgage Broker | Branch Manager · Freeman Douglas Corporation, Jacksonville Beach, FL · [email protected]

Freeman Douglas Corporation is a DBA of Edge Home Finance. This is not a promise to lend — all credit decisions are subject to approval. Douglas Wilkerson, NMLS #1680719 | Edge Home Finance, NMLS #891464. Verify licensing at nmlsconsumeraccess.org. Equal Housing Opportunity.