Mortgages for professional services owners
Consultants, attorneys, accountants, agencies, and independent advisors usually earn through 1099 contracts or a Schedule C practice. We qualify on gross 1099 income or business deposits — not the net that home-office and business deductions shrink.
By Sunrise Lending
The 1099 and Schedule C reality
The 1099 and Schedule C reality
What you need to know
- 1099 programs qualify on 24 months of gross contract income with a 5–10% expense factor
- Bank statement programs qualify on 12–24 months of business deposits
- Multiple clients and platforms are aggregated — no single primary payer required
- Home-office, software, and travel write-offs do not reduce gross-based qualifying income
- Solo owners transitioning from a W-2 role in the same field may qualify in 12 months
- CPA letter can lower the expense factor for low-overhead practices
- Hybrid files (1099 plus deposits) are compared to surface the higher number
About this
Two clean paths for professional earners
Independent consultants, attorneys, accountants, marketing agencies, and advisors typically earn one of two ways: 1099 contract income or a Schedule C practice run through a business account. Both create the same conventional-underwriting problem — legitimate deductions for a home office, software subscriptions, travel, and subcontractors shrink the taxable net well below the cash the practice actually produces. Two Non-QM paths fix it.
The 1099 path
A 1099 program averages your gross 1099 income over 24 months and applies a modest 5–10% expense factor — reflecting the genuinely low overhead of most service work. A consultant with $240K in 1099s over two years qualifies on roughly $120K/year gross, minus a small factor, rather than the $80K Schedule C net that aggressive deductions might show. Multiple clients and platforms are aggregated, so a fractional CFO with eight clients or an attorney with several referral sources qualifies on the combined total.
The bank statement path
When income flows as client payments into a business account rather than on tidy 1099s — common for agencies and firms that bill directly — a bank statement program averages 12–24 months of deposits with a 50% expense factor (or lower with a CPA letter). For low-overhead professional practices, a CPA letter documenting a real expense ratio in the 20–30% range can meaningfully raise qualifying income.
Newcomers and hybrids
A professional who recently left a salaried role to consult in the same field may qualify on a 12-month look-back at some programs, with the prior W-2 history demonstrating continuity. And when an owner has both 1099 income and business deposits, the matcher runs both a 1099-only and a hybrid configuration and surfaces whichever produces the stronger qualifying income.
Common questions
- Can a 1099 consultant get a mortgage without using the Schedule C net?
- Yes. A 1099 program averages your gross contract income over 24 months and applies only a small expense factor. Home-office, software, and travel deductions that reduce your Schedule C net do not reduce gross-based qualifying income, so the program reflects the real top line of your practice.
- I bill several clients with no single main one. Does that matter?
- No. A 1099 program aggregates all payers — multiple clients, platforms, and referral sources all count toward gross contract income. There is no requirement for a single primary payer or a consistent year-over-year client mix.
- My agency bills clients directly rather than on 1099s. Which path fits?
- A bank statement program. It averages 12–24 months of business deposits with a 50% expense factor by default. For a low-overhead agency, a CPA letter documenting your actual expense ratio can lower that factor and raise qualifying income.
- I just left a salaried job to consult. Can I qualify already?
- Possibly. Some programs accept a 12-month look-back when you are now self-employed in the same field you held a W-2 role in. The prior employment demonstrates continuity, which supports a shorter documentation window. The matcher identifies which programs accept your timeline.
- Should I use the 1099 path or the bank statement path?
- It depends on how you are paid and your margins. If your income arrives on 1099s with low overhead, the 1099 path usually qualifies higher. If you bill directly into a business account, the bank statement path fits. When you have both, the matcher compares the two and surfaces the stronger result.
Ready to see your options?
The 60-second check-in matches you to the right program. A licensed Sunrise loan officer reviews before anything formal moves.
Related resources
Sources
- 1.Internal Revenue Service (IRS). About Form 1099-NEC, Nonemployee Compensation — Accessed June 2026
- 2.Internal Revenue Service (IRS). About Schedule C (Form 1040): Profit or Loss from Business — Accessed June 2026
- 3.U.S. Bureau of Labor Statistics. Management Analysts (Consultants) — Occupational Outlook — Accessed June 2026
1099 and bank statement program requirements — look-back period, expense-factor treatment, and credit minimums — vary by lender. Final approval, terms, and rates are determined by the lender after full underwriting. Not a commitment to lend.
Sunrise Lending · Equal Housing Opportunity. Matching rules are written and reviewed by licensed mortgage professionals. All loan decisions are made by licensed mortgage professionals. Not a commitment to lend. Loan approval subject to underwriting guidelines. This is not financial advice.