| Can you get a mortgage with 1099 income? Yes. Lenders treat 1099 income like self-employment, which means you generally need a two-year history, and your qualifying income is based on what you report after expenses. If your write-offs are heavy, programs exist that use your bank deposits or your gross 1099s instead. More and more folks around here earn this way. Contractors, drivers, nurses on contract, salespeople, tradesmen. The work is real and the money is real. The mortgage process just counts it differently, and knowing the rules ahead of time is the whole game. The two-year rule. Most loans want two years of 1099 history in the same line of work. There is flexibility if you went from W2 employment to 1099 work in the same field. One year can sometimes work with the right lender. This is exactly the kind of file we shop across our 50-plus lenders, because one lender's no is another lender's yes. How your income gets counted. On a conventional or FHA loan, the lender averages your net income from your tax returns, after deductions. Big write-offs shrink your buying power. That surprises people every single time. The workarounds. If your tax returns undersell you, a bank statement loan qualifies you on deposits, and a 1099-only program uses your gross 1099 totals with an expense factor. Rates run a bit higher, but for many contractors it is the difference between buying and waiting. What to do now. Even if you are a year away, call us. We will look at your last returns and tell you whether to adjust your write-off strategy this year, because a conversation with your CPA in November can be worth tens of thousands in buying power next spring. Work hard, get paid on a 1099, want a home of your own? That is most of Cleveland County. Call Mathewson Mortgage Capital and we will give you a straight answer. |
