If you earn your income on a 1099 instead of a W-2, you are self-employed in the eyes of a mortgage lender — and that is good news, because it opens the door to programs built for exactly your situation. You do not need a traditional employer to buy a home. You need the right program and a file that tells a clear story.
You Are Self-Employed to a Lender
A 1099 contractor is treated as a self-employed borrower. That means conventional loans will use your tax-return income after write-offs — which, for contractors who deduct mileage, equipment, and home-office expenses, often understates your real earnings. The alternative is a non-QM program that looks at your actual cash flow.
Programs That Fit 1099 Income
- Bank statement loans: 12 or 24 months of deposit history establishes your qualifying income.
- P&L loans: A CPA-prepared profit and loss statement supports your income figure.
- Conventional: Possible if your tax-return income after write-offs is strong enough — I run both to compare.
What Contractors Should Prepare
- 12 or 24 months of bank statements showing consistent deposits from your contract work
- Proof of your business — an EIN, a business license, or a CPA letter
- Contracts or 1099s that document your income sources
- A clean separation between business and personal accounts, which makes the deposit story easier to read
Consistency beats size
Lenders care more about consistent deposits than a single huge month. If your income is lumpy, I will help you choose the statement window that presents the steadiest picture.
What If You Just Started Contracting?
Most bank statement programs want 12–24 months of history, but there are shorter-track options for established professionals transitioning from W-2 to contract work. If you recently made the switch, send me your statements and I will give you an honest read on where you stand and what timeline to expect.
The bottom line: a 1099 is not a barrier to homeownership. It is a different path. Send me your situation and I will tell you which program fits and what to gather — usually within hours, not days.