> ## Documentation Index
> Fetch the complete documentation index at: https://cameron.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Who Qualifies for a 1099 Loan

> Eligibility requirements for 1099 mortgage programs, including income history, credit, and documentation standards

1099 loans are available to independent contractors and self-employed borrowers whose income is documented primarily through 1099 forms. Eligibility depends on income history, credit, and the ability to demonstrate consistent contracting activity.

## Who This Loan Is Designed For

The core requirement is that your income comes from independent contractor work or commission-based employment—not W-2 wages. Common 1099 earners who use these programs:

* Real estate agents and brokers
* Insurance agents
* Mortgage brokers
* Commission-based sales professionals
* IT contractors and consultants
* Healthcare workers (traveling nurses, locum tenens physicians, therapists)
* Creative and media professionals (photographers, designers, writers)
* Rideshare and delivery drivers (with consistent history)

If you receive W-2 income alongside 1099 income, some lenders will let you combine both. The W-2 portion is documented traditionally; the 1099 portion is documented with your forms.

## Self-Employment Verification

Receiving a 1099 doesn't automatically prove self-employment status to a lender's satisfaction. You'll also need to document that you operate as an independent contractor:

* Business license or DBA registration
* Professional license (if applicable to your industry)
* CPA letter confirming self-employment status
* Client contracts or letters of engagement

## Income History Requirements

| Requirement   | Typical Standard                                    |
| ------------- | --------------------------------------------------- |
| 1099 history  | 2 years preferred, 1 year with compensating factors |
| Consistency   | Income should be stable or trending upward          |
| Documentation | All 1099 forms for the qualifying period            |
| Tax returns   | Sometimes required for supplemental verification    |

Some lenders require tax returns in addition to 1099s to verify that the income was reported. Others rely entirely on 1099s and bank statements.

## Credit and Financial Requirements

1099 loan requirements are similar to bank statement loans:

| Requirement  | Typical Range     |
| ------------ | ----------------- |
| Credit score | 620-700 minimum   |
| Down payment | 10-20% minimum    |
| DTI ratio    | Up to 50%         |
| Reserves     | 6-12 months PITIA |

## Who Does Not Qualify

* **W-2 employees** with no self-employment income — use a conventional loan
* **Borrowers with less than one year of 1099 history** — insufficient track record
* **Misclassified employees** — if your "1099 income" is actually from an employer who should be issuing W-2s, lenders may not accept it
* **Irregular or declining income** — two years of declining 1099 totals may disqualify or reduce qualifying income significantly

## Newly Started Contractors

If you recently started contracting work but have relevant W-2 experience in the same field, some lenders will count the combined history. A software engineer who spent five years as a W-2 employee before going independent may qualify immediately with strong 1099 income.