Do I need all 24 months of 1099s?

Yes — all 1099s across all payers for the 24-month look-back period.

What if income comes from many clients?

All 1099s aggregated. Multiple payers, platforms, and forms all counted toward gross total.

Can I combine 1099 with W-2 income?

Yes — on joint applications, W-2 and 1099 income qualify separately on their documentation paths.

Does this work for real estate agents?

Yes — commission income on 1099-MISC or 1099-NEC qualifies. Two years standard; one year with prior W-2 continuity may qualify.

What credit score is required?

660+ minimum; pricing improves materially at 720+.

← 1099 loans

1099 loan requirements

1099 loans require two years of 1099 forms from all payers, credit that meets the program requirements, and 10–25% down. No Schedule C add-back math — the program qualifies on gross contract income.

By Sunrise Lending

How 1099 income qualifies

1099 loans average gross contract income over 24 months and apply a modest expense factor (5–10%), bypassing the Schedule C net that conventional underwriting uses. If your gross 1099 income is $200K and Schedule C nets out to $90K, the 1099 program qualifies on the $200K side of that equation.

What you need to know

24 months of 1099-MISC or 1099-NEC forms from all payers
12 months may qualify for established earners with prior W-2 history in the same field
Credit score: 660+ (best pricing at 720+)
Down payment: 10–25% depending on property type
No tax returns required for income qualification
CPA letter optional — can override the expense-factor adjustment
Multiple 1099 payers are fine — gross total is what qualifies

How qualifying income is calculated

The program averages your gross 1099 income over 24 months and applies an expense-factor adjustment — typically 5–10%, reflecting that most 1099 earners have lower overhead than Schedule C businesses. A $200,000 24-month total = $100,000/year = $8,333/month gross, minus 10% expense adjustment = $7,500/month qualifying income.

Compare this to conventional: $200,000 gross income processed through Schedule C might net $90,000 after legitimate business deductions, producing $7,500/month qualifying income under the standard add-back methodology — or less if deductions are aggressive.

A CPA letter documenting your actual expense ratio can lower the adjustment below the 5–10% default and increase qualifying income further.

Multiple payers

The program aggregates all 1099s from all payers. Multi-platform contractors — a freelancer with income from 10 different clients — qualify on the total gross across all sources. The program does not require a single primary payer, minimum number of clients, or consistent year-over-year client mix.

Combining 1099 with bank statements

For contractors who also accumulate deposits in a business account, a hybrid file sometimes produces higher qualifying income than either path alone. The matcher runs both configurations — 1099-only and hybrid — and surfaces whichever produces the stronger qualifying income.

Year-to-year variation

The 24-month average smooths out variation. A strong recent year that's partially offset by a weaker prior year still produces a reasonable average. For earners whose income is clearly trending up, some programs will accept a 12-month average for a higher qualifying income — ask your officer whether your file meets the criteria.

Common questions

Do I need all 24 months of 1099s or just recent ones?: All 24 months across all payers. The lender calculates the gross average over the full look-back period. Partial documentation or gaps in 1099 history typically require explanation or reduce the qualifying period.
What if my 1099 income comes from many different clients?: All 1099s are aggregated to arrive at total gross contract income. Multiple payers, multiple platforms, multiple 1099-NEC or 1099-MISC forms — all counted. The program does not require a single primary payer.
Can I combine 1099 income with W-2 income?: Yes. On a joint application with a W-2 co-borrower, the W-2 and 1099 income qualify separately on their respective documentation paths. On a single-borrower application, 1099 + prior W-2 history in the same field may qualify under a shorter look-back.
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 evidence of continuity in the industry.
What credit score do I need?: 1099 programs typically start at 660 and price materially better at 720+. The check-in asks for a score band so the matcher narrows you to programs your profile actually qualifies for.

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.

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Related resources

Sources

1.Internal Revenue Service (IRS). About Form 1099-NEC, Nonemployee Compensation — Accessed June 2026
2.Consumer Financial Protection Bureau (CFPB). Ability-to-Repay and Qualified Mortgage Standards — Accessed June 2026
3.U.S. Small Business Administration (SBA). Independent Contractors and Self-Employment — Accessed June 2026

1099 program requirements — look-back period, expense-factor treatment, and minimum income thresholds — vary by lender. Final approval, terms, and rates determined by lender after 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.