Mortgage Options for 1099 Borrowers
Earn income through 1099s instead of a traditional W-2? Certain mortgage programs may offer alternative ways to document qualifying income. Explore home purchase and refinance options for independent contractors, freelancers, and other eligible self-employed borrowers.
- Certain programs may evaluate 1099 income using alternative documentation
- Purchase and refinance scenarios, subject to qualification
- Options for contractors, freelancers, consultants, and commission-based professionals
- Reviewed by a licensed Watermark Home Loans loan officer
See which mortgage options may fit your 1099 income
Answer a few quick questions about how you're paid and your loan goal. A licensed Watermark Home Loans loan officer reviews your answers personally.
Takes about 1–2 minutes. No obligation.
- A few simple questions — no documents, no application
- Your information is used only to review your options
- Reviewed by a licensed Watermark Home Loans loan officer
1099 Income Doesn't Always Fit a Traditional Mortgage Calculation
Independent contractors and other 1099 borrowers may have variable income, business expenses, or deductions that make traditional tax-return calculations more complicated. Certain mortgage programs may evaluate qualifying income using alternative documentation depending on the borrower and program.
Variable Income
Project-based or seasonal 1099 earnings may not line up neatly with a standard monthly income calculation.
Business Deductions
Legitimate write-offs may reduce taxable income even when contract work generates steady cash flow.
Alternative Documentation
Depending on the program, qualifying income may be documented in more than one way for eligible borrowers.
No Traditional Paystubs? You May Still Have Options
Many 1099 workers do not receive traditional employer paystubs. That does not necessarily mean they cannot qualify for a mortgage. Certain mortgage programs are designed to evaluate self-employed and nontraditional income using other eligible forms of documentation.
Contract-Based Income
Income earned through contract or project work may potentially be documented under certain programs.
Deposit-Based Review
Eligible bank deposits may be reviewed as one way to evaluate qualifying income for certain programs.
Business Documentation
Business records and other supporting documentation may be used depending on the borrower and mortgage program.
Takes about 1–2 minutes. No obligation.
Different Programs May Evaluate 1099 Income Differently
The documentation needed depends on your income structure and the specific loan program. Requirements vary and all options are subject to qualification.
1099 Forms
Certain programs may consider qualifying 1099 earnings as part of the income analysis.
Bank Statements
Eligible personal or business bank statement deposits may provide another way to document income under certain programs.
Other Supporting Documentation
Tax returns, profit-and-loss statements, business documentation, or other information may be required depending on the mortgage program.
Takes about 1–2 minutes. No obligation.
The right documentation method depends on your scenario.
Whether a mortgage using 1099 income may be available depends on your income structure, deposits, credit profile, property, loan amount, and the specific mortgage program. Requirements vary and all options are subject to qualification.
1099 Mortgage Options for Purchase or Refinance
Eligible 1099 borrowers may be able to use alternative income documentation for either goal.
Buying a Home
Explore mortgage programs for eligible 1099 borrowers purchasing a primary residence, second home, or other eligible property. Property and occupancy eligibility varies by program.
Refinancing
Explore refinance options for eligible 1099 borrowers who want to change their current mortgage or evaluate access to home equity, subject to borrower, property, equity, and program requirements.
Mortgage Options for Independent and 1099 Workers
These programs are commonly used by borrowers paid outside a traditional W-2 structure. Eligibility depends on the specific program.
Independent Contractors
Borrowers paid as contractors rather than traditional W-2 employees.
Freelancers
Borrowers with project-based or variable income from multiple clients.
Consultants
Professionals earning some or all of their income through 1099 compensation.
Real Estate Professionals
Agents, brokers, and other commission-based professionals who may receive 1099 income.
Gig & Contract Professionals
Eligible borrowers earning income through contract-based work.
Business Owners
Self-employed borrowers who receive 1099 income in addition to or instead of traditional payroll income.
W-2 Income vs. 1099 Income
Two different documentation paths — neither is better than the other.
- Traditional W-2 employee: income may typically be documented using items such as paystubs, W-2 forms, employment verification, and other required documentation.
- 1099 / self-employed borrower: depending on the program, qualifying income may be evaluated using 1099 earnings, bank statements, tax documentation, profit-and-loss information, or other eligible documentation.
How Can 1099 Income Be Used for a Mortgage?
A short questionnaire, then a real conversation with a licensed loan officer who works with 1099 and self-employed borrowers.
- 1
Tell Us How You're Paid
Answer a few questions about your 1099 income, business history, property, and mortgage goals.
- 2
Review Your Documentation
Depending on the program, qualifying income may be evaluated using 1099 forms, bank statements, tax documentation, profit-and-loss information, or other eligible documentation.
- 3
Compare Your Options
A licensed loan officer reviews available purchase or refinance programs that may fit your situation.
Reviewed by a licensed Watermark Home Loans loan officer who works with 1099 borrowers.
A licensed mortgage professional reviews how your contract income actually works, explains which documentation paths may fit, and helps you compare available options — subject to program requirements and qualification.
1099 Mortgage FAQs
Common questions about using 1099 income to qualify for a mortgage.
Yes, certain mortgage programs may allow eligible borrowers to use 1099 income when calculating qualifying income. Requirements vary by program.
It depends on the mortgage program. Some programs may use tax returns, while certain alternative-documentation programs may allow other qualifying income documentation.
Certain mortgage programs may allow eligible bank statement deposits to be used when documenting self-employed income.
Many 1099 borrowers do not receive traditional paystubs. Depending on the program, other qualifying documentation may be used instead.
Yes. Independent contractors may qualify for mortgage financing if they meet the applicable income, credit, property, asset, and program requirements.
Freelancers may qualify depending on their documented income, history, credit profile, assets, property, and loan program.
Certain refinance programs may be available to eligible 1099 borrowers.
Rates and pricing depend on the specific mortgage program, borrower qualifications, loan structure, market conditions, property, and other factors.
See If You Qualify
Answer a few quick questions to see which self-employed mortgage options may fit your situation. No obligation.
Takes about 1–2 minutes. One question at a time.
Ready to get started?
If you already know you want to move forward, you can start the full mortgage application now.