1099-Only Mortgage - Home Loans for Contractors & Freelancers

Mortgages Built for the Way You Actually Work

If you're self-employed and earn income via 1099s, getting approved for a mortgage through traditional channels can feel like a dead end. Lenders tend to focus on tax returns-which rarely reflect your true income after deductions. That's where our 1099 income mortgage in NJ steps in. Whether you're a contractor, consultant, or gig worker, we'll help you qualify for a home loan using your 1099s instead of W-2s or tax filings.

A Simple Mortgage for 1099 Earners

A 1099-only loan is designed for independent workers who receive IRS Form 1099 for their earnings. That includes real estate agents, truck drivers, freelancers, medical consultants, gig economy workers, and more. Instead of requesting tax returns, lenders use the income reported directly on your 1099s to assess eligibility.



These loans are ideal for:

  • Independent contractors with fluctuating income
  • Freelancers and consultants in IT, media, marketing, and healthcare
  • Real estate professionals and self-employed salespeople
  • Anyone who earns through 1099 income instead of payroll

We specialize in helping these borrowers qualify with confidence.

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How 1099 Mortgages Work in New Jersey

Here's how we typically structure your application:

  • Provide 1-2 years of 1099 forms from your clients or employers
  • Optionally, include year-to-date earnings summary or bank statements to verify continuity
  • No need for full tax returns or adjusted gross income calculations
  • Some programs allow qualification with just one year of 1099s
  • Credit scores starting around 620+ typically qualify
  • Expect down payments of 10-20%, depending on the lender and loan type

You get to show your gross reported income, rather than a heavily reduced number after business write-offs. That can be the difference between "declined" and "approved."

Why 1099 Loans Work for Freelancers & Contractors

Here's why this program is a popular choice across Middlesex County and throughout New Jersey:

  • Avoids tax return hurdles-especially if you take large deductions
  • Minimal paperwork-you may only need your 1099 forms
  • Versatile use-can be used for purchase, refinance, or even cash-out
  • Ideal for non-W2 workers-no employer needed
  • Works for all property types-primary homes, vacation homes, even investment properties (with some programs)

It's the perfect fit if your income is real, steady, and just not showing up where banks normally look.

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Important Requirements to Know

Like all financing, 1099 loans have guidelines to keep expectations clear:

  • Most lenders want 2 years of consistent 1099 income, but some allow just one
  • May require proof of current income stream-a contract, client letter, or YTD earnings
  • May check credit score and DTI (debt-to-income), especially for higher loan amounts
  • Some lenders assume an expense ratio when qualifying (e.g. count 90% of 1099 income), though this varies
  • You don't need perfect credit, but stronger credit improves your terms
  • Programs are flexible, but expect higher rates than conventional loans

Whether your 1099 income comes from one client or several, we'll work with you to verify stability and help you qualify.

1099 vs. Bank Statement Loans - Which Fits Best?

While both are self-employed mortgage options, there are key differences:

  • 1099 Loan

    Based on reported income from official tax documents (1099s)

  • Bank Statement Loan

    Based on actual deposits in your bank accounts over time

If your 1099s show strong income, a 1099-only mortgage may be faster and cleaner. But if your 1099s are low and your deposits tell a better story, we might recommend the bank statement route instead. Either way, we'll guide you to the best option.

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Common Questions About 1099 Mortgages

  • Do I need to show bank statements for a 1099 loan?

    Not always. Most lenders focus on your 1099s, but some may ask for recent statements to confirm current deposits or cash flow.

  • What if I have multiple 1099 clients?

    That's perfectly fine-as long as the work is consistent, we can add the income together. We've helped many gig workers and consultants with diverse clients.

  • Can I qualify with just one year of 1099 income?

    Some programs allow it if the income is strong and you've been in the field longer. Others require two years. We'll help you match with the right lender.

  • Are 1099 loans considered Non-QM loans?

    Yes, these are part of the Non-QM (Non-Qualified Mortgage) family. Rates may be a little higher than conventional, but they're well worth it for access and flexibility.

Let's Turn Your 1099s Into a Home Loan

You shouldn't need W-2s or pristine tax returns to qualify for a mortgage. If you earn your income as a 1099 contractor or freelancer, let us show you how to use that income to purchase or refinance your home in New Jersey.