The gig economy isn’t a trend anymore — it’s how millions of Americans build careers and earn their living. Freelancers, independent contractors, real estate agents, consultants, truckers, and creative professionals all share one thing in common: their income comes through 1099 forms, not W-2s.
Traditional mortgage lenders often struggle with 1099 income. They average your last two years of tax returns, apply business expense deductions, and come up with a number that may not reflect your actual earning power at all. A 1099 Loan takes a more direct approach.
A 1099 Loan is a mortgage designed specifically for borrowers who earn income primarily through 1099 forms. Instead of relying on tax return net income after deductions, lenders look at your 1099 earnings — either your gross income as reflected on those forms, or a combination of gross income with a standardized expense ratio applied.
In many cases, this means your qualifying income is significantly higher than what your tax returns show, which translates directly to a larger loan amount and a better chance of approval.
For 1099 Loans, lenders typically use one of two approaches. The first is averaging your 1099 gross income over 12 or 24 months without applying personal tax deductions. The second is using your 1099 gross income and applying a predetermined expense factor based on your industry to arrive at net qualifying income.
Either way, the result is usually a more favorable income calculation than what a traditional lender sees on your Schedule C. That means more buying power for you.
Mark Stillman has spent over 19 years in mortgage finance, and a significant portion of that experience has been helping non-traditional earners navigate the lending landscape. We understand that a strong 1099 income doesn’t always translate cleanly onto a tax return — and we know how to present your financial picture accurately to our wholesale lenders.
Because we’re a broker, not a bank, we can shop your file to multiple lenders offering 1099 programs and find the one that gives you the best terms for your specific situation.
