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Lenders may review recent 1099 documents and year-to-date support.
Non-QM 1099 Only Loan
1099 Only Loan
A Non-QM option for independent contractors and commission-based borrowers with strong 1099 income documentation.
What it is
What is this loan?
A 1099 only loan may allow eligible borrowers to document income primarily through 1099 forms instead of a traditional full tax-return package.
It may fit borrowers whose gross 1099 income is strong but whose tax returns do not tell the full borrower story. Lenders still evaluate ability to repay under specific Non-QM rules.
Borrower fit
Who this loan may be right for
- Independent contractors with consistent 1099 income.
- Commission-based borrowers with recurring annual earnings.
- Borrowers with year-to-date support and stable line of work.
- Applicants who can document credit, assets, reserves, and property eligibility.
How lenders review the income
Income stability, business or contract history, and continuity of earnings matter.
An expense factor may be applied before income is used for qualifying.
IRS payment plans, liabilities, credit, reserves, LTV, and occupancy still matter.
Real-life use case
Example scenario
A medical sales contractor receives consistent 1099 income each year, but tax returns include deductions that reduce net income. A 1099-only review may help evaluate the earnings pattern more directly.
Program highlights
Designed for eligible 1099 and commission income scenarios.
May reduce reliance on full tax-return net income.
Requires stable income history and a complete credit, asset, and property review.
Purchase, refinance, or cash-out may be possible when guidelines allow.
- This is not a no-income loan. Income must be documented through acceptable 1099-related evidence.
- This is not a commitment to lend. Program availability, eligibility, rates, terms, loan amounts, LTV, reserves, documentation requirements, and property eligibility depend on the full borrower scenario, occupancy, property type, credit profile, lender guidelines, and underwriting review. Not all borrowers will qualify.
- Simple Lending Mortgage LLC currently offers financing assistance where properly licensed, including Florida and Georgia. Program availability depends on borrower eligibility, property location, lender guidelines, and applicable law.
1099 Only Loan FAQ
Do I need tax returns for this loan?
Some files may not require full tax-return income documentation, but lenders can still request documents needed to validate the scenario and comply with guidelines.
Can self-employed borrowers qualify?
They may, depending on the program, business history, deposits or documentation, credit, assets, reserves, property type, occupancy, LTV, and lender review.
Can I use this for a purchase?
Purchase transactions may be available when the full borrower and property scenario meets lender guidelines.
Can I refinance or take cash out?
Refinance and cash-out options may be available, but cash-out files are reviewed around equity, purpose, credit, reserves, and property eligibility.
What credit score is usually needed?
Credit requirements vary by lender and scenario. Stronger credit often improves available options, pricing, and leverage.
Are reserves required?
Reserves may be required and can vary based on loan amount, LTV, occupancy, property type, credit profile, and lender guidelines.
Can I use gift funds?
Gift fund rules vary by product, transaction type, occupancy, and lender. The scenario review can identify what may be allowed.
Can this work for an investment property?
Some Non-QM paths may work for eligible investment properties, but occupancy, rental income, reserves, and property guidelines matter.
How does the lender calculate my income?
The lender applies its Non-QM documentation method, then reviews the full file rather than relying on one isolated number.
Why should I request a scenario review?
A scenario review helps identify which documentation path may fit before you spend time gathering the wrong package.
Scenario review