1099 Mortgage

1099 Mortgage

Many traditional home loans, such as Conventional, FHA, VA, Jumbo, and USDA loans, poorly serve applicants who earn their income through 1099 wages. On a conventional home loan, the lender is restricted to using only the taxable portion of the applicant's salary for qualification purposes.

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What is a 1099 Mortgage?

1099 Mortgage loans, also known as self-employed mortgages, allow you to ensure a mortgage without the documentation you usually use to verify your income, such as W-2s and tax returns. Instead, workers qualify based upon the 1-2 years of 1099's.

Entrepreneurs, freelancers, small business owners, and self-employed borrowers get the mortgage you want at the low rates you deserve.

Can 1099 Workers Qualify for Mortgages?

The short answer is yes. But it's a bit more complex than just a simple yes. Don't worry, though, because you'll understand how to get your mortgage after this.

The first step to getting mortgages for 1099 employees is prequalification. It is as straightforward as phoning your bank or completing an online questionnaire with the basic details on your Form 1099 income report, debt, and assets. This information should give you a quick estimate of the amount you can afford to borrow to purchase your home.

Key Features of 1099 Mortgages.

  • Low Down Payment: Less than 10% down required.
  • Flexible income calculation
  • Flexible credit score requirements: Scores as low as 620.
  • Reserves: The reserves depend on the credit score, LTV, and loan amount (Primary Residence Purchases).
  • For loan amounts: ≤ $1.5MM and FICO 680 or higher - Max 90% LTV = 6 months PITIA
  • For loan amounts: $1.5MM ≤ $3MM and FICO 660 or higher - Max 75% LTV = 12 months PITIA
  • For loan amounts: $100,000 - $1.5MM and FICO 700 or higher - Max 85% LTV = 3 months PITIA
  • For loan amounts: $100,000 - $1.5MM and FICO 660 or higher - Max 80% LTV = 3 months PITIA
  • For loan amounts: $100,000 - $1.5MM and FICO 620 or higher - Max 75% LTV = 3 months PITIA
  • Gift Funds from a family member are permissible (the borrower must demonstrate that they have at least 5% of the purchase price and reserves of their funds). Consult your Loan Originator.
  • Interested Party Contributions (IPCs)- up to 6% of the purchase price. This includes credits from sellers, real estate agents, builders, etc.) For Investment Properties - the max contribution is 2% of the purchase price.
  • Occupancy: Owner Occupied, or Second/Vacation Home, or Investment Homes
  • Eligible Home types: Single-family homes, Townhomes / Villas, 2-4 Unit Multi-family, condominiums (both warrantable and non-warrantable).

Mortgage Unity LLC

We bring a customized, unique approach to mortgages. Our lending solutions use the perfect hybrid of human-driven insights and technical prowess to process loans faster and significantly reduce costs.


(978) 590-8200




67 Forest St. Suite 272
Marlborough, MA 01752


Mortgage Unity LLC supports Equal Housing Opportunity. Company NMLS ID# 1843595 (www.nmlsconsumeraccess.org)| 508-974-8186. Mortgage Unity LLC is licensed by MA, NH, ME Broker License # MB1843595, Interest rates and products are subject to change without notice and may or may not be available at the time of loan commitment or lock-in. Borrowers must qualify at closing for all benefits. Mortgage Unity LLC is a Massachusetts limited liability company. 67 Forest St #272, Marlborough MA 01752.

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