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