Mortgage loan programs
1099 Mortgage Options for Independent Contractors
If you receive contractor income reported on Form 1099, ask LendEase about mortgage options that use eligible 1099 records as part of income qualification. This can be a useful comparison when traditional employee pay documentation does not describe how you earn money.
What does a 1099 program evaluate?
The lender decides which forms, earning history and supporting records are acceptable. The amount reported on a 1099 is not automatically the amount used to qualify; business expenses, continuity and the lender’s calculation method can matter. Confirm the required period and any supplemental documentation before choosing a program.
What should I prepare for our conversation?
- The 1099 forms you have and the work or contract history behind them.
- How the lender accounts for expenses and calculates qualifying earnings.
- Any additional records required to connect the reported income to your current circumstances.
How should I compare my options?
Compare a 1099 approach with bank statements or a P&L option based on your available records. The right comparison considers both qualification and total loan costs, rather than the document name alone.
Confirm whether the program fits a primary residence, second home or eligible investment property. Availability depends on the lender and transaction. A documentation option does not remove the requirement for accurate information, borrower qualification or underwriting approval.
Subject to lender guidelines, borrower eligibility, property requirements and underwriting approval. Program availability and documentation requirements vary.