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.
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No Tax Returns
Qualify using 1 or 2 years of 1099 forms from clients and platforms instead of W-2s or tax returns. Your 1099 income tells the real story.
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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.
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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. Faster processing than bank statement loans.
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Up to $3M+ Loan Amounts
Borrow up to $3 million or more with qualified 1099 income. Jumbo amounts available for high-earning independent professionals.
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Multiple Property Types
Finance primary residences, second homes, and investment properties. Single-family, condo, townhome, and multi-unit (2-4 units) eligible.
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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
1 or 2 years of 1099 forms from all clients/platforms
1099-MISC, 1099-NEC, or 1099-K forms accepted
Must show consistent 1099 income over qualifying period
Self-employed or independent contractor for 2+ years
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
Credit & Down Payment
Minimum 620 credit score (680+ for best rates)
10-20% down payment for purchase
Max 90% LTV purchase, 80% cash-out refi
DTI up to 50%
Reserves & Property
3-6 months PITIA in liquid reserves
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.
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 Max Cash-Out: Up to 80% LTV
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.
Independent contractors often qualify for significantly more with a 1099 loan because we use your gross 1099 income, not your adjusted gross income after deductions.
Understanding the costs associated with 1099 loans helps you plan effectively.
Cost Item
Purchase
Refinance
Down Payment
10-20%
N/A
Interest Rate
6.75-7.75%*
6.75-7.75%*
Closing Costs
2-5% of loan
2-5% of loan
Origination Fee
0.5-1.5%
0.5-1.5%
Appraisal Fee
$500-$1,000
$500-$1,000
Reserves Required
3-6 months PITIA
3-6 months PITIA
Max LTV
Up to 90%
Up to 80% (cash-out)
Rate Factors for 1099 Loans
Your rate depends on credit score, LTV, loan amount, property type, and 1099 income consistency. Borrowers with 720+ credit and 20%+ down typically receive rates closest to conventional pricing.
*Rates shown are illustrative. Actual rates vary by credit profile, loan amount, and market conditions. Contact us for a personalized quote.
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
1-2 years of 1099 forms
12-24 mo bank statements
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 (12-24 mo statements)
Min. Credit Score
620
620
Min. Down Payment
10%
10%
Max Loan Amount
$3M+
$3M+
Rate Premium
+0.5-1.5% vs conventional
+0.5-1.5% vs conventional
Property Types
Primary, 2nd, Investment
Primary, 2nd, Investment
Reserves Required
3-6 months
3-6 months
*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. Actual rates and payments will vary based on credit, income documentation, and property. Subject to credit approval.
The Process
Your 1099 Loan Journey
From gathering 1099s to funding in 21-30 days. Here's how it works.
1
Gather Your 1099s
1–2 Days
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
1–3 Days
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
14–21 Days
1099 income verification, expense factor confirmation, appraisal ordered, and title work completed. Streamlined documentation means fewer delays than bank statement analysis.
4
Closing
1 Day
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. You must have at least 1-2 years of consistent 1099 income.
Most 1099 loan programs require 1 or 2 years of 1099 forms. The 1-year option uses your most recent year's 1099 income. The 2-year option averages income over both years, which can be beneficial if your income has been increasing. 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 (typically 10-25%) to account for business expenses. For example, if your 1099s total $120,000 annually with a 15% expense factor, 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.
Most 1099 loan programs require a minimum credit score of 620. Borrowers with 680+ credit scores qualify for the best rates, lower down payments, and more flexible terms. Credit scores below 680 may require larger down payments (15-25%) and carry higher interest rates.
1099 loans are available up to $3 million or more depending on your qualifying income, credit score, and property type. Loan amounts above the conforming limit are considered jumbo 1099 loans and may have slightly different requirements.
Minimum down payments for 1099 purchase loans range from 10% to 20% depending on credit score, loan amount, and property type. Borrowers with 700+ credit scores may qualify for 10% down. Investment properties and higher loan amounts typically require 20-25% down.
Yes. 1099 loans are available for primary residences, second homes, and investment properties including 1-4 unit residential properties. Investment property 1099 loans typically require 20-25% down payment, 680+ credit score, and 3-6 months of reserves.
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. Typical maximum LTV for cash-out is 75-80% depending on credit score and property type. Cash can be used for business investment, debt consolidation, home improvements, or any purpose.
1099 loan rates are typically 0.5% to 1.5% higher than conventional mortgage rates. The premium reflects the alternative documentation and increased flexibility. Borrowers with higher credit scores (720+), lower LTV ratios, and strong 1099 income qualify for rates closer to conventional pricing.
1099 loans typically require 3-6 months of PITIA (principal, interest, taxes, insurance, and association dues) in liquid reserves after closing. Acceptable reserves include checking and savings accounts, stocks and bonds, retirement accounts (counted at 60-70% of 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 12-24 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. Both have similar rates and requirements. 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. Most 1099 loan programs require 2-4 years after a Chapter 7 bankruptcy discharge and 2 years after a Chapter 13 discharge. You'll need to demonstrate re-established credit, meet the minimum credit score requirement, and show consistent 1099 income during the post-bankruptcy period.
1099 loans typically close in 21-30 days. 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.
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!
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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
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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
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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
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Belvia Lynn
★★★★★
My overall experience while working with Adam McCormick was excellent. He was very pleasant and professional.
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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.
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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!!
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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
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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.
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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!
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Dejan Jajcevic
★★★★★
I’ve worked with mini bankers before and I used to do them over a decade ago myself and my experience that I had with Chad was nothing short of phenomenal. He is a wonderful Banker does a very diligent job and did not miss any moments of reassuring me where my loan was and closing I couldn’t say enough good things about him and I hope if I ever need to go through this stressful process again he is still in business to take care of me
J
James Reaves
★★★★★
Adam is awesome super friendly easy to work with always aware of what’s going on and keeps you informed which is great.
L
Lesli Hopkins
★★★★★
Lynette is absolutely awesome to work with! She takes the time to make you comfortable with the process and answers any questions completely and accurately
B
Bobby Strickland
★★★★★
Andre Floyd was ABSOLUTELY AMAZING. I just love working with him.
A
Abraham Sanchez
★★★★★
Working with Greg Darlin has been an awesome experience. An honest and sincere individual. He is to the point and very very knowledgeable. I appreciate the fact that he didn’t try to give me the run around and through the entire process I learned a few things. Thank you.
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.
