Financing for Independent Contractors. Qualify on Your 1099 Income.
Qualify for a mortgage using your 1099 income forms instead of tax returns. Designed for freelancers, independent contractors, and gig economy workers. No W-2s needed. FDIC insured.
Traditional mortgages require W-2s and tax returns that don't reflect your true earning power. 1099 loans use your actual contract income to qualify.
📄
No Tax Returns
Qualify using your 1099 forms from clients and platforms (commonly one or two years, depending on the program) instead of W-2s or tax returns. Your 1099 income tells the real story.
💼
Independent Contractor Friendly
Designed for freelancers, gig workers, real estate agents, consultants, rideshare drivers, and anyone paid via 1099. Stop being penalized for being your own boss.
📊
Simplified Documentation
Your 1099s are straightforward income proof — standardized forms instead of month-by-month deposit analysis, with an expense factor applied to your gross income.
💰
Sized to Your File
How much you can borrow depends on your qualifying 1099 income, your credit and the property. Ask for the program's written limit before you shop.
🏠
Multiple Property Types
Finance primary residences, second homes, and investment properties. Single-family, condo, townhome, and multi-unit (2-4 units) eligible.
🔄
Purchase or Refinance
Use 1099 income for home purchases, rate-and-term refinances, and cash-out refinances. Access equity or buy your next property without tax returns.
Eligibility
Who Qualifies for a 1099 Loan?
1099 loans are designed for independent contractors and freelancers with consistent 1099 income from clients or platforms.
Income Documentation
1099 Forms
1099 forms from all clients and platforms (commonly one or two years, by program)
1099-MISC, 1099-NEC, or 1099-K forms accepted
Must show consistent 1099 income over qualifying period
A history of self-employment or contract work, as the program requires
CPA letter or business license may be required
1099 vs Bank Statement: If your income comes from identifiable clients who issue 1099s, a 1099 loan is often simpler than bank statement analysis. If income is mixed or cash-based, bank statements may be the better option.
Loan Requirements
Reviewed for Your File
Credit score and credit history
Down payment, loan-to-value and debt-to-income
Reserves left after closing
This page does not quote minimum credit scores, down payments, loan-to-value or debt-to-income limits, or reserve amounts. Those come from the program selected for your file. Ask for them in writing and compare them before you decide.
Property
Primary, second home, or investment property
1-4 unit residential properties
Condos, townhomes, single-family eligible
1099 Refinance
Refinance Using Your 1099 Income
Access your equity or optimize your mortgage terms using 1099 income documentation. No tax returns, no W-2s — just your 1099 forms from clients and platforms.
Cash-out limit set by the program for your file
Consolidate high-interest debt into one payment
No tax return documentation required
One or two years of 1099s, depending on the program
We total your gross 1099 income and apply a modest expense factor to determine your qualifying income. Straightforward forms, straightforward process.
Annual 1099 Income: $145,000 Expense Factor: 15% Qualifying Income: $10,271/month
Example arithmetic only, not an approval, a quote or a program's method. The expense factor is set by the program reviewed for your file.
Also explore our Bank Statement Loan if your income doesn't generate 1099 forms or is primarily cash-based.
1099 Purchase
Buy a Home on Your Contract Income
Don't let traditional income requirements stop you from buying your next home. 1099 loans let independent contractors qualify on actual contract income.
Down payment set by the program for your file
Loan size based on qualifying income and the property
Primary, second home, and investment properties
One or two years of 1099s, depending on the program
A 1099 program starts from your gross 1099 income less an expense factor, not the adjusted gross income on your tax return after deductions, so your qualifying income can differ from what your return shows.
How much that changes what you can borrow depends on your debts, the property and the program reviewed for your file. Ask for a written answer before you shop.
Rates, fees, closing costs and loan-to-value limits are set by the program reviewed for your file. Ask for written terms and compare them before you decide.
What Sets Your Rate and Costs
Your rate depends on credit score, loan-to-value, loan amount, property type and how consistent your 1099 income is, and it changes daily. For a home you will live in, your Loan Estimate lists the rate, the fees and the cash to close; for an investment property, your written terms do. Ask for them before you decide.
Loan Comparison
1099 Loan vs. Bank Statement
Two great options for self-employed borrowers. See which one fits your situation best.
1099 Loan
Bank Statement
Income Documentation
1099 forms (one or two years, by program)
Recent bank statements, period set by the program
Best For
1099 contractors & freelancers
All self-employed borrowers
Income Calculation
Gross 1099 minus expenses
Deposit analysis w/ expense factor
Documentation
Simpler (standardized forms)
More complex (month-by-month deposits)
Rate and Pricing
Set by the program for your file
Set by the program for your file
Property Types
Primary, 2nd, Investment
Primary, 2nd, Investment
*1099 loans are typically simpler when income comes from identifiable clients. Bank statement loans are better for cash-based or mixed-source income.
Payment Calculator
Estimate Your 1099 Loan Payment
Toggle between Refinance and Purchase to see your estimated monthly payment. No tax returns needed — just your 1099 income forms.
Estimates only, from the numbers entered. The rate is the one you enter from your written quote; this is not a loan estimate, a rate quote or an offer; actual rates and payments vary with credit, income documentation and property, and change daily. Subject to credit approval. This is not a commitment to lend.
The Process
Your 1099 Loan Journey
Here's how it works, step by step. We do not promise a closing date on a web page.
1
Gather Your 1099s
Collect 1 or 2 years of 1099 forms (1099-NEC, 1099-MISC, or 1099-K), proof of self-employment, and basic financial documentation. We'll tell you exactly what's needed.
2
Pre-Qualification & Rate Lock
We total your 1099 income, apply the expense factor, and calculate your qualifying income. Review your options and lock your rate when you're ready to proceed.
3
Processing & Underwriting
1099 income verification, expense factor confirmation, appraisal ordered, and title work completed. Streamlined documentation means fewer delays than bank statement analysis.
4
Closing
Sign your final documents. For purchases, get the keys to your new home. For refinances, start saving or receive your cash-out funds within days.
Frequently Asked Questions
1099 Loan FAQs
Answers to the most common questions about 1099 loans for independent contractors, income documentation, and qualification.
No. Texana Bank Mortgage uses a soft credit inquiry for pre-qualification, which has absolutely no impact on your credit score. You can check your rate, explore loan options, and get pre-approved without any effect on your credit. A hard inquiry only occurs later if you formally move forward with a full application.
A 1099 loan is a non-QM mortgage that allows independent contractors and freelancers to qualify using their 1099 income forms instead of traditional W-2s and tax returns. Lenders use your gross 1099 income (minus an expense factor) to calculate qualifying income. This is ideal for anyone who receives 1099-MISC, 1099-NEC, or 1099-K forms from clients or platforms.
1099 loans are designed for independent contractors, freelancers, gig workers, and self-employed professionals who receive 1099 income forms. This includes real estate agents, insurance agents, rideshare drivers, consultants, freelance writers and designers, delivery drivers, and anyone paid as an independent contractor. Programs look for a consistent history of 1099 income; how long a history is set by the program reviewed for your file.
Programs commonly ask for one or two years of 1099 forms, depending on the program. A one-year look uses your most recent year's 1099 income; a two-year look averages both years, which can help if your income has been rising. Which applies is set by the program reviewed for your file. Your loan officer will recommend the best option based on your income trend.
Accepted 1099 forms include: 1099-NEC (nonemployee compensation, the most common for contractors), 1099-MISC (miscellaneous income), and 1099-K (payment card and third-party network transactions from platforms like Uber, Lyft, DoorDash, Etsy, etc.). Multiple 1099s from different clients or platforms can be combined.
Lenders total your gross 1099 income and apply an expense factor to account for business expenses; the factor is set by the program reviewed for your file. For example, if your 1099s total $120,000 a year and a 15% factor were applied (an assumption for the arithmetic), your qualifying income would be $102,000/year ($8,500/month). This is often significantly higher than what shows on your tax return after deductions.
The minimum credit score is set by the program reviewed for your file, and a higher score generally improves your pricing and options. This page does not quote a minimum; ask for the written terms that apply to you.
How much you can borrow depends on your qualifying income, credit, the property and the program reviewed for your file. This page does not quote a loan-amount limit; ask for the written limit that applies to you.
The down payment is set by the program reviewed for your file, and it depends on your credit, the loan amount, the property and how you will occupy it. This page does not quote a minimum; ask for written terms.
Yes. 1099 loans are available for primary residences, second homes, and investment properties including 1-4 unit residential properties. An investment property usually needs a larger down payment and more reserves; the program reviewed for your file sets both.
Yes. 1099 refinances are available for rate-and-term refinances and cash-out refinances. You can refinance from any existing loan type — conventional, FHA, VA, or another non-QM loan — into a 1099 loan. This is ideal if you've transitioned from W-2 employment to independent contracting.
Yes. 1099 cash-out refinances allow you to access your home equity using your 1099 income to qualify. How much of your equity you can take out is set by the program reviewed for your file, the property type and your credit, so ask for the written limit that applies to you. Cash can be used for business investment, debt consolidation, home improvements, or any purpose.
1099 loans are often priced differently from conventional loans because of the alternative documentation. Your rate depends on your credit, loan-to-value, loan amount, property type and how consistent your 1099 income is, and it changes daily. This page does not quote a rate or a rate difference; ask for written terms for your file.
Reserves are counted in months of PITIA (principal, interest, taxes, insurance and association dues) left in liquid assets after closing; how many months is set by the program reviewed for your file. Acceptable reserves can include checking and savings accounts, stocks and bonds, retirement accounts (often counted at less than full value) and documented gift funds.
Yes. 1099 loans are available for single-family homes, condos (warrantable and non-warrantable), townhomes, and 2-4 unit properties. Multi-unit properties must be owner-occupied if used as a primary residence, or can be fully rented if purchased as an investment property.
If you have both W-2 wages and 1099 income, you may be able to use a hybrid approach. Some programs allow you to combine W-2 income (documented with pay stubs) with 1099 income for higher total qualifying income. If your 1099 income alone is sufficient, you can qualify using just your 1099 forms.
If you receive 1099 forms from identifiable clients or platforms, a 1099 loan is typically simpler — you just provide your 1099s rather than months of bank statements. Bank statement loans are better when income is cash-based, comes from multiple small sources, or doesn't generate 1099 forms. Your loan officer can recommend the best fit.
A CPA letter is not always required but can be helpful. Some programs require a CPA or tax preparer letter confirming your self-employment status and the nature of your work. A CPA letter can also document a lower expense ratio than the standard factor, increasing your qualifying income.
Yes, but waiting periods apply, and the program reviewed for your file sets them. Have your discharge dates ready. You will also need to show re-established credit and consistent 1099 income since the discharge.
Timing depends on the appraisal, title work and how quickly documents come in, so we do not promise a closing date on a web page. Having your 1099 forms organized and ready at application helps speed up the process. Documentation is often simpler than bank statement loans since 1099s are standardized forms. Refinances may close faster than purchases since there is no purchase contract timeline.
Reviews
What Independent Contractors Say About Texana Bank
Real reviews from real borrowers. See why independent contractors and freelancers trust Texana Bank Mortgage.
Texana Bank helped me with the purchase of my third home, and honestly, the experience was the smoothest of all three home purchases. I only worked with Lynette, but she was friendly, helpful, and courteous at all times. She was extremely patient with me, and she took time to answer all my questions. Even more impressive is that the bank worked with me through a challenging employment situation. Never once was I made to feel bad about asking questions, and Lynette's responses were lightning fast. This was one of the best experiences I have ever had with any company, bar none. I highly recommend Texana Bank to anyone.
M
Mikayla Irwin
★★★★★
Lynette Heck is the best to work with. No matter what we needed, she was on top of it and thinking of things way before we needed it! We really appreciate everything she did for us!
M
Mark Sherrard
★★★★★
Overdue but thanks again Adam, I appreciate you going above and beyond to make sure my family got our dream home. 10 stars.
C
Carson Romero
★★★★★
My experience with Lynette was the best and easiest experience it could’ve possibly been when being a first time home buyer. She’s very kind, communicative, reliable, and so much more! It made the whole process that much less stressful and overwhelming. So blessed to have had her on my side!
Z
Zane Atkins
★★★★★
Parker McMahan has helped us with 3 mortgages and a refi in part few years. Always great service-always honest advice. Texana will be my “go to” for mortgage advice and activity from here on. They are also great in the area of VA home loans.
G
Gary McDay
★★★★★
I had an excellent experience working with my texana bank mortgage from start to finish. They were extremely professional, knowledgeable, responsive, and made the entire mortgage process feel much easier than I expected.
They took the time to explain everything clearly, answered all of my questions, and kept me informed throughout the entire process. I always felt like I had someone in my corner who genuinely cared about helping me reach my goals.
If you’re looking for a mortgage broker who is trustworthy, dependable, and willing to go the extra mile for their clients, I highly recommend them. I truly appreciate all of their hard work and would definitely work with them again!
K
Kent Sisco
★★★★★
Adam McCormick is fantastic! Easy to work with and keep me informed every step of the way! Looking forward to working with him again in the future
A
Andrea Ferrell
★★★★★
Adam was phenomenal from start to finish! He was friendly and professional. He assisted me every step of the way, walking me through the process with ease. He was always there for whatever questions I had. He was very, very patient and always reached out to me in a timely manner if I contacted him and he was unavailable at the time. Moreover, he made me feel as if he cared for more than just my loan, but me as a person!!! Texana is blessed to have him as an associate!!
Andrea
C
Clay Ragsdale
★★★★★
Where to really start. Adam walked me through everything and put me at ease. I have had some bad experiences with other companies so I was digging and looking for any red flag. There was none with him and his direct talk is what did it for me. Someone that is real and just says what it is. No false hope or misdirection at anytime.
I would recommend him to anyone and definitely Someone looking for honesty and caring. The communication is top notch and a true professional.
Respectfully,
Clay
B
Belvia Lynn
★★★★★
My overall experience while working with Adam McCormick was excellent. He was very pleasant and professional.
J
Joseph Hardman
★★★★★
Adam McCormick is an absolute professional in every sense of the word. I will NEVER use any other loan officer for my financials other than Adam as long as he is in the business. His work as my loan officer was exceptional. Throughout the process, he always responded to an e-mail, responded to a text, called right back if not answering immediately. He always made you feel as though you were his only client. There was never the impression he had more important things to do other than speak with you. He worked with us through a death in the family, personal issues, and numerous other challenges. It's possible other loan officers would have given up on us during this process, but Adam stuck with us through it all. His work ethic is amazing. He is an expert in his craft. I could not possibly give a higher recommendation, he has redefined what right looks like in this business.
M
Marsha Kessler-Bradshaw
★★★★★
I was about to go with another company for this refinance no cash out until I received a call from this Adam McCormick. He was so knowledgeable and made me feel very comfortable with this process. Adam is knowledgeable ,courteous, understanding and has a real passion and patience for people. 👍We are at the closing. Thank you Adam McCormick!!
P
Peter Jenkins
★★★★★
My situation had its difficulties. Justin was confident and persistent through the process and we the got the result
D
Dale Samuel
★★★★★
Mark has been very professional and has been very respectful to my wife and myself.
Mark has shown that genuine human qualities and really worked with us and for us.
This actually been a pleasure to get to know Mark.
J
James Fields
★★★★★
Outstanding Service and support from a truly Customer Oriented Agent! My pleasure to have worked with Mr. MCcormick.! Would follow him to next source if necessary. He is concerned in an outstanding balanced way. My pleasure to?know and do Business with him and The Bank!
JFields
R
Rose Stone-Stewart
★★★★★
Texana Bank was there for us throughout the entire process. Their personableness, as well, their professionalism. As a financial institution it was nice to know that while obtaining a loan, we had a safe place to relay. They are absolutely “by the book” and at the same time makes the process easier to participate. The hospitality and genuine concern as clients was overwhelming of which we will always consider Texana Bank first, before mostly any other financial institution.
M
Mitchell Morris
★★★★★
Greg was awesome and the process was simple. I have nothing but the highest praise for the process and for Greg himself. Thank you.
R
Ronald Bylsma
★★★★★
Best refi experience of our lives, Andre was very knowledgeable and always kept us calm when things got stressful. Would recommend Mr. Andre Floyd to anyone looking for a great lending officer!
Ready to Qualify With Your 1099 Income?
Stop letting tax deductions hold you back from homeownership. Our 1099 loan specialists understand independent contractors and freelancers.
