1099 Loans

About this program

How it works — step by step

1. 1

   Take the 60-second check-in

   Answer five questions about your 1099 income sources, how long you've been contracting, and what you're trying to do. The matcher checks whether a 1099-only path or a hybrid with bank statements produces stronger qualifying income.

2. 2

   Gather your 1099 documents

   24 months of 1099-MISC or 1099-NEC forms from all payers. If your 1099s come from multiple clients or platforms, all are included in the gross tally. A CPA letter documenting your actual expense ratio can override the standard adjustment.

3. 3

   Licensed MLO reviews the income calculation

   A Sunrise loan officer confirms the 24-month 1099 average, identifies whether a hybrid bank-statement path adds income, and confirms the program fit. This is the first formal conversation — nothing locks until you decide to move forward.

4. 4

   Underwriting on gross contract income

   The lender calculates qualifying income from your gross 1099 average with an expense-factor adjustment. Schedule C is not used to calculate income. Standard underwriting proceeds from here — appraisal, title, credit review.

5. 5

   Close and fund

   Well-organized 1099 files typically close in 30–45 days. Your licensed officer coordinates the closing timeline and keeps you informed at each milestone.

What it usually looks like

• 24 months of 1099-MISC or 1099-NEC forms (12 months may qualify for established earners with prior W-2 in same field)
• Consistent contract income from same industry (not required to be from one payer)
• Credit score typically 660+ (materially better pricing at 720+)
• Down payment 10–25% depending on property type and LTV
• No tax returns required for income qualification
• CPA letter optional — can override the expense-factor adjustment where actual ratio is better documented
• Reserves: 3–12 months PITIA depending on program and LTV
• Continuity of self-employment in the same trade or profession

How it compares

Program terms, LTV limits, and documentation requirements vary by lender. As of June 2026. Not a commitment to lend.

Real scenarios

Who this fits

• Mortgage for a 1099 Independent Contractor

  See if this fits

• Mortgage for a Dual-Income Household

  See if this fits

• Mortgage for an Established SMB Owner

  See if this fits

Common questions

Who is the 1099 loan designed for?

Independent contractors, freelancers, real estate agents, consultants, and commission-based earners — anyone paid via 1099s. The program qualifies on documented gross contract income, not the depressed net that Schedule C add-back math produces.

How is qualifying income calculated on a 1099 loan?

Typically as a 24-month average of gross 1099 income with an expense-factor adjustment (often 5–10%). A CPA letter documenting your actual expense ratio can override the standard factor, raising qualifying income.

Do I need 2 years of 1099 history?

Most programs require 24 months. Some accept 12 months for established earners — e.g., an attorney transitioning from a firm to solo practice or a licensed agent with prior W-2 history in the same industry.

What if my 1099s come from multiple sources?

Fine. Each 1099 is added to the gross total. The program looks at total documented contract income and does not require a single primary payer. Multi-platform contractors who 1099 from multiple clients are an explicit fit.

Can I combine 1099 income with bank statement income?

Yes. For high-deposit earners, a hybrid file (1099 + bank statement) sometimes produces a higher qualifying income than either path alone. The matcher checks both configurations; the licensed officer recommends whichever funds the file better.

How does a 1099 loan compare to a conventional mortgage?

Conventional underwriting opens your Schedule C, adds back what it can categorize, and qualifies on net self-employed income — often half of gross. The 1099 program bypasses that math and qualifies on documented gross contract income.

What credit score do I need for a 1099 loan?

1099 programs typically start at 660 and improve materially at 720+. The check-in asks for a score band so the matcher narrows you to programs your profile actually qualifies for.

Does the 1099 loan work for real estate agents?

Yes — real estate agents are among the most common 1099-borrower profiles. Commission income on 1099-MISC or 1099-NEC qualifies. Two years of history is standard; one year may work with prior W-2 in the same industry.