1099 Only Loans

If you’re a self-employed borrower who receives one or more 1099s per year, Stated Income Mortgage is designed with you in mind. We understand that traditional income verification doesn’t always paint your true financial picture. That’s why our mortgage professionals offer a personalized approach to help you qualify for a loan. Whether you’re a gig worker, freelancer, or run your own business, our program lets you combine your 1099 with other income sources. We give you two options for documenting your income. Option one allows you to choose a 10% expense ratio. Option two lets you provide a Business Expense Statement or Profit & Loss statement prepared by a third party, like your tax professional, that reflects at the minimum a 5% expense factor. We then calculate your qualifying income based on the 12 or 24-month average of all your 1099s, minus the expense factor.

• Designed for borrowers who receive one (1) or more 1099s / year.
• It can be combined with all other income sources.
• There are two (2) options to support and document income:  – Option #1: Use a 10% expense ratio OR – Option #2: Provide a third party (tax professional) prepared Business Expense Statement OR P&L to a minimum 5% expense factor.
• Qualifying income is based on the 12- or 24-month average from all 1099‘s minus the expense factor. YTD earnings must show that the income is ongoing with the following:  Paystub that reflects YTD earnings OR Bank Statements, YTD or 4 months (whichever is less)
• The YTD earnings from the paystub or the total of deposits on the bank statements must be within 15% of the qualifying income.
• Tax transcripts are not required.

Our streamlined option means there’s no need for tax transcripts, making the process more accurate and faster. To confirm your income is ongoing, all that’s needed is a one-year 1099. That’s what makes our loan program unique. No other income documents are required. Keep in mind, though, that the YTD earnings from your 1099 must be within 15% of the qualifying income. At the core of our Stated Income mortgage program is the commitment to helping self-employed borrowers buy a home, even when their income doesn’t qualify with traditional income documentation. We offer customized solutions and can help you take the next step towards homeownership.