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Self-Employed

A 1099 is a tax form, not a mortgage decision on its own. Here is the public guidance on how self-employment income gets documented, and how Texana describes its 1099 review.

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Income Documentation

Being self-employed does not mean starting from zero — it means a different documentation path.

Independent contractors, freelancers and sole proprietors sometimes assume a mortgage is out of reach without W-2s. Public IRS and agency guidance treats self-employment as a documented income type with its own rules, not an automatic obstacle.

Two different reviews show up in that guidance. Conventional and agency underwriting generally starts from signed federal tax returns, including Schedule C for a sole proprietor. Separately, some Non-QM programs — including the 1099 path Texana describes on its own site — review 1099 forms instead of full tax returns. Neither path is an automatic approval; credit, assets, property and full underwriting still apply.

Bottom line: a 1099 or a Schedule C is a tax document, not a mortgage decision by itself — but public guidance describes more than one way a lender can document self-employment income.
Borrower Review

Two ways self-employment income gets documented.

The tax-return path

Fannie Mae’s Selling Guide (B3-3.5-01) treats 25%+ ownership as self-employment and generally works from two years of signed federal tax returns, or transcripts, plus a written cash-flow analysis.

The 1099 path

Texana’s 1099 page describes reviewing 1 to 2 years of 1099-NEC, 1099-MISC or 1099-K forms from clients or platforms as an alternative to tax returns.

Schedule C is the tax-return math

Fannie Mae’s Selling Guide (B3-3.6-03) describes adjusting Schedule C net profit for recurring and non-recurring items — a different calculation than a 1099 total.

Underwriting Notes

Why a 1099 total and a tax return can show different numbers.

A 1099 reports what a business was paid. A tax return reports what is left after deductions. Two different reviews can look at the same self-employment and reach different qualifying-income figures.

What "self-employed" means

The IRS treats a sole proprietor, an independent contractor, a partnership member, or someone running a gig or part-time business, as self-employed. Most sole proprietors and many gig workers report profit or loss on Schedule C, and self-employment tax is figured on Schedule SE.

What a 1099 actually is

A Form 1099-NEC reports nonemployee compensation paid to a contractor. It is a tax information return, not a mortgage decision on its own — some Non-QM programs use the totals as an income source, but not every lender does.

The agency tax-return path

Fannie Mae’s Selling Guide describes signed federal tax returns, generally two years, with documented exceptions, and a written cash-flow analysis for a self-employed borrower, adjusting Schedule C profit for items such as depreciation and non-recurring income. Freddie Mac’s Income Calculator FAQ describes one year of Schedule C data when a business has existed five or more years, and two years when it has existed less than five.

The 1099 path Texana describes

Texana’s 1099 loan page describes reviewing 1 to 2 years of 1099 forms from clients or platforms and applying an expense factor to gross 1099 income to arrive at qualifying income — a different calculation than the Schedule C adjustments used on the tax-return path.

Common Traps

Do not let self-employed income get oversimplified.

"A stack of 1099s is an automatic approval"

No. A 1099 is a tax form. Credit, assets, property, occupancy and full underwriting still apply on any path.

"My 1099 total is my qualifying income"

Not necessarily. Texana’s public description applies an expense factor to gross 1099 income before arriving at a qualifying number; a Schedule C review makes its own adjustments to net profit.

"Every lender documents self-employment the same way"

No. The CFPB notes that self-employed and irregular-income borrowers should expect more documentation, and requirements vary by lender and program — ask which path applies before assuming.

Related Self-Employed Pages

Keep the borrower path connected.

Sources checked September 22, 2026. The IRS Self-Employed Individuals Tax Center (last reviewed June 28, 2026) and About Form 1099-NEC (last reviewed June 7, 2026) define self-employment and the 1099 form. Fannie Mae’s Selling Guide B3-3.5-01 and B3-3.6-03 describe the conventional tax-return underwriting path. Freddie Mac’s Income Calculator FAQ describes Schedule C documentation timelines. The CFPB describes self-employed documentation expectations (last modified December 12, 2024) and the difference between soft and hard credit inquiries (last reviewed September 5, 2025). Texana’s 1099 page is the source for Texana’s own process statements. Educational content only — not a rate quote, approval, or commitment to lend.

Source: IRS: Self-Employed Individuals Tax Center (last reviewed June 28, 2026)
IRS: Self-Employed Individuals Tax Center — last reviewed June 28, 2026
IRS: About Form 1099-NEC — last reviewed June 7, 2026
Fannie Mae Selling Guide B3-3.5-01: Underwriting Factors and Documentation for a Self-Employed Borrower
Fannie Mae Selling Guide B3-3.6-03: Income or Loss Reported on IRS Form 1040, Schedule C
Freddie Mac: Income Calculator FAQ
CFPB: Gather and update your paperwork — last modified December 12, 2024
CFPB: What’s a credit inquiry? — last reviewed September 5, 2025
Texana: 1099 Loan
Related pages:
1099 LoansBank Statement LoansSelf-Employed Mortgage Options

Want your 1099 or Schedule C income reviewed?

Bring your 1099 forms or tax returns, business type, purchase or refinance goal, assets, and credit range. We will review the file before guessing which documentation path fits.

See If My 1099 Income Qualifies →Call (888) 272-8264
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What borrowers say about Texana Bank

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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!

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

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

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

Belvia Lynn

My overall experience while working with Adam McCormick was excellent. He was very pleasant and professional.

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.

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!!

Peter Jenkins

My situation had its difficulties. Justin was confident and persistent through the process and we the got the result

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.

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

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.

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.

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!

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

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.

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

Bobby Strickland

Andre Floyd was ABSOLUTELY AMAZING. I just love working with him.

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.