1099 loans in Florida and Colorado for independent contractors
What is a 1099 loan?
A 1099 loan is a Non-QM mortgage for independent contractors that qualifies you on the income reported on your 1099 forms for one or two years, instead of the net income on your tax returns. The lender typically applies an expense factor to gross 1099 income to get qualifying income. It suits contractors, agents and gig workers with large deductions.
- Qualifying income comes from your 1099 forms, not your tax return's net income.
- Programs accept one or two years of 1099s; the tool prices both.
- Lenders usually apply an expense factor to gross 1099 income.
- This tool prices Florida and Colorado primary homes and second homes live.
- Rates are typically above conventional and depend on credit, down payment and history.
The tool opens on one year of 1099s. Switch to two years to compare pricing for the same loan.
Price a 1099 loan
Self-employed? Qualify on how you actually earn. Live wholesale pricing for Florida and Colorado properties. Not an approval, commitment, or guarantee of financing.
Found a 1099 quote you like?
A licensed loan officer will review your 1099s and confirm the best option for you.
How a 1099 loan works
- Step 1
Gather your 1099 forms
Provide one or two years of 1099s from the companies that pay you.
- Step 2
Total gross 1099 income
The lender adds up income reported on your 1099s.
- Step 3
Apply the expense factor
A program-set expense factor is subtracted to estimate business costs.
- Step 4
Verify ongoing income
Recent bank statements or a written verification confirm the income continues.
1099 loan vs. bank statement loan
Both serve self-employed borrowers. The cleaner record usually wins.
| Factor | 1099 loan | Bank statement loan |
|---|---|---|
| Income proof | 1099 forms | 12 or 24 months of deposits |
| Best for | Contractors paid by a few clients | Business owners with many deposits |
| Paperwork | Usually lighter | More statements to review |
| Pricing | Compare in the tool | Compare in the tool |
How 1099 income is calculated
A sample independent contractor using one year of 1099s.
- Gross 1099 income$150,000
- Sample expense factor10%
- Qualifying annual income$135,000
- Qualifying monthly income$11,250
In this sample, the lender would count $11,250 as monthly qualifying income, even if the tax return shows less after deductions.
Illustrative only. Expense factors and calculation methods vary by lender and program.
What you'll typically need
- One or two years of 1099 forms
- Recent bank statements showing 1099 deposits
- Government-issued photo ID
- Two months of statements showing down payment and reserves
- Homeowners insurance quote
- Purchase contract or current mortgage statement
One year or two of 1099s?
Send your scenario and we'll compare both for you.
Who uses Non-QM loans
Write-offs reduce taxable income, but deposits show real cash flow.
1099 income qualifies without full tax-return analysis.
Liquid assets can be converted into qualifying income.
Uneven income can be averaged over 12 or 24 months.
Non-QM loans: benefits and trade-offs
- Qualify without tax returns
- Several documentation options to fit your records
- Works for primary homes and second homes
- Live pricing lets you compare paths instantly
- Rates are usually higher than conventional loans
- Larger down payments are often required
- More reserves may be needed
- Fewer lenders offer each program
1099 loan questions
What is a 1099 loan?
A Non-QM mortgage where the lender uses your 1099 income for one or two years instead of full tax returns to calculate qualifying income.
One year or two years of 1099s?
Some programs accept one year of 1099s; two years can help show steady income. Use the tool to compare pricing for both.
Who uses 1099 loans?
Independent contractors, gig workers, real estate agents and other borrowers paid on 1099s.
Do I need tax returns for a 1099 loan?
Usually not. The program relies on your 1099 forms plus supporting documents such as recent bank statements.
How is 1099 income calculated?
Lenders typically total gross 1099 income and apply an expense factor set by the program to estimate qualifying income.
Can I combine 1099 and W-2 income?
Some programs allow it. A loan officer can confirm the best path for mixed income.
Are 1099 loan rates higher than conventional?
Usually. Your rate depends on credit, down payment and documentation — see live options in the tool.
Can real estate agents use a 1099 loan?
Yes. Agents paid on 1099s by their brokerage are a common fit.
Can I use a 1099 loan for a second home?
Yes. The tool prices primary homes and second homes in Florida and Colorado.
Where is this pricing available?
Florida and Colorado primary homes and second homes.
Simply Approved Mortgages is a mortgage broker, NMLS #2620881, licensed for residential lending in Florida and Colorado. Pricing shown by the tool is from current wholesale schedules, changes without notice, and is not a loan approval, commitment to lend, or rate lock. Program availability, documentation and limits vary by lender and are confirmed in underwriting.
How We Evaluate This Scenario
A 1099 file is strongest when the same payers appear year after year. A change of clients is fine, but a large drop in 1099 income between years usually means the lender uses the lower figure.
Recent bank statements showing the same deposits as your 1099s help confirm that the income is continuing, which is the main question an underwriter asks on these loans.
If you have both 1099 and business deposit income, compare the 1099 and bank statement paths in the tool — one usually prices noticeably better.
Reviewed by Simply Approved Mortgages · NMLS #2620881. Business-purpose investor lending only.
Qualify on your 1099 income
Get a personalized 1099 loan quote for your Florida or Colorado home.
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