1099

A 1099 mortgage is a loan designed for self-employed individuals or freelancers. Instead of using traditional W-2 forms, you can qualify using your 1099 tax forms, making it easier if you have variable income or work independently. 

Yes. Instead of tax returns, A&D uses actual wages from your 1099 form as qualifying income for your new home loan. 

Typical 1099 mortgage documentation includes:

• – 1099 tax forms for the last 1 year from the same employer.​

• – Pay stub showing your YTD (Year to Date) income or confirmation from your employer that your 1099 income matches what you report; if you do not have a YTD pay stub, a written verification of employment will also work .​

• – Proof that you have no mandatory expenses . ​

• – Letter from your CPA (Certified Public Accountant) regarding your expenses .

You must have 3 months of reserves. Reserves are money you have on hand (liquid assets) after you pay your down payment and closing costs. It is like an emergency account that lets us know you can cover at least 3 months of mortgage payments if something happens. 
To qualify, you must have 3 months of principal, interest, real estate taxes, homeowner’s insurance, and HOA dues in a liquid account such as checking, CDs, or liquid investments. 

If you are a contractor, salesperson, or consultant, you deserve mortgage financing just as much as someone with a W-2 position. If you can prove you can afford the loan and your income is steady, you deserve the same loan treatment. 
The 1099 income program makes it much easier to secure a mortgage despite working as a 1099 employee. With no prepayment penalties on owner-occupied homes or second homes, and up to 6% of the purchase price for closing costs from interested parties, we make it easy to secure financing to buy a home as a 1099 employee.