Real estate and insurance producers
Commission arriving on 1099s with heavy business write-offs against it.
Non-QM · 1099 qualification
1099 income loans for Texas contractors and 1099 earners.
Qualify from your 1099 totals with a program-set expense factor — often simpler and stronger than a deposit analysis when your income arrives as 1099s.
How it works.
A 1099-only program takes the gross income reported on your 1099 forms for the most recent one or two years and applies a fixed expense factor rather than deducting the Schedule C write-offs that shrink taxable income. For a high-earning contractor with aggressive deductions, the qualifying figure can be dramatically higher than tax-return underwriting produces.
This structure fits Texas realities well: real estate agents and loan officers, insurance producers, medical and dental contract providers, IT and engineering consultants, energy-service specialists, and gig-platform earners who receive 1099-NEC or 1099-MISC rather than a W-2.
The usual decision is 1099 versus bank statement. If your 1099 totals exceed the income a deposit analysis would generate — common when clients pay by check or ACH into a personal account, or when deposits are inconsistent — the 1099 path is cleaner and requires far less document assembly.
Who it fits
Where this program does the most work.
Contract medical and dental providers
High gross 1099 income where returns show a fraction of it after deductions.
Consultants and contract engineers
Project-based 1099 income that a 12-month deposit average can understate.
Gig and platform earners
Multiple 1099s across platforms with documented, consistent annual totals.
Guideline snapshot
What 1099-only files typically look like.
- Income documentation
- One or two years of 1099s, often with a year-to-date verification
- Expense factor
- Commonly 10%–25% applied to gross 1099 income depending on program and profession
- History requirement
- Typically two years in the same line of work, with some programs allowing one
- Purchase LTV
- Often up to 80%–90% for stronger credit profiles
- Credit score
- Frequently 620–680 minimum; best pricing usually 720+
- Reserves
- Often 3–6 months, more on jumbo loan amounts
- Occupancy
- Primary, second home and investment property allowed on many programs
General ranges shown for orientation only. Guidelines, calculation methods, documentation, property eligibility, reserves, rates and terms vary by lender and program and are subject to change. This is not a pre-qualification, approval or commitment to lend.
1099 Income Loans Texas FAQ
Questions borrowers ask.
Do I need tax returns for a 1099 loan?
Generally no — these programs are designed to qualify from 1099 totals rather than tax-return net income. Some lenders still request returns for other purposes; requirements vary by lender and program.
What expense factor will be applied?
Commonly somewhere between 10% and 25% of gross 1099 income, sometimes adjusted by profession or by a CPA letter. The factor is set by the program, not negotiated on the file.
Is a 1099 loan better than a bank statement loan?
It depends on which produces the higher, cleaner qualifying figure. High 1099 totals with irregular deposits usually favor the 1099 path; strong consistent business deposits sometimes favor the statement path. We run both.
How long do I need to be 1099?
Most programs expect two years in the same field; some allow one year with compensating factors. Requirements vary by lender and program.
Can I combine W-2 and 1099 income?
Often yes — mixed-documentation files are common, with each income type documented under its own rules. Combination rules vary by lender and program.
Not sure which documentation path fits? That is the conversation.
Financing Provided Through
Clear Rate MortgageLicensed Mortgage Lender · NMLS #2470446
Mike Keys · NMLS #2795829 · Company NMLS #2470446
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