Mortgage Loans for Independent Contractors

1099 Mortgage Loan Highlights

• Eligible Borrowers: Non-QM 1099 mortgage loan programs are specifically tailored for self-employed individuals who receive income reported on IRS Form 1099. This includes freelancers, independent contractors, consultants, and small business owners.
• Documentation Requirements: Since self-employed borrowers often have non-traditional income documentation, Non-QM 1099 mortgage loan programs may be more flexible in terms of income verification. While traditional mortgages require two years of tax returns, these programs may consider alternative documentation such as bank statements, profit and loss statements, or CPA letters to verify income.
• Property Types: Non-QM 1099 mortgage loan programs generally allow a range of property types. This can include primary residences, second homes, and investment properties.
• Maximum Loan-to-Value (LTV): The maximum LTV ratio represents the percentage of the property's value that can be financed. Non-QM 1099 programs typically offer more flexible LTV ratios compared to conventional mortgages, with maximum LTVs often ranging from 75% to 90%.
• Credit Considerations: These programs may be more lenient in terms of credit requirements. While good credit is still important, they may consider borrowers with lower credit scores or non-traditional credit histories.
• Interest Rates and Costs: Non-QM mortgage loans, including the 1099 program, typically come with higher interest rates compared to traditional mortgages due to the unique circumstances of self-employed borrowers.