1099 Income Loans for Florida Independent Contractors
Are you a freelancer, real estate agent, or independent contractor who gets paid via 1099? Your write-offs shouldn't cost you the house. The 1099-Only loan bypasses your tax returns completely, qualifying you based purely on your gross 1099 earnings.
Can I qualify on my 1099s alone?
Do you need my tax returns?
You don't need to provide 1040s or Schedule C forms. Your income is calculated directly from your 1099s, protecting your qualifying income from write-offs.
How much gets deducted?
Instead of the standard 50% expense cut used in Bank Statement loans, 1099 loans often apply a much lower expense factor, typically just 10% to 25%.
How long do I need a 1099 history?
Most lenders want two years of 1099 income. Some will qualify you on your most recent year when your credit and down payment are strong.
What can I buy with it?
Unlike some niche commercial loans, the 1099-Only program can be used to buy your Primary Residence, a Second Home, or an Investment Property.
Why do banks keep declining 1099 earners?
If you're an independent contractor, you likely take advantage of IRS rules to deduct mileage, home office expenses, meals, and equipment from your gross income. This is a smart tax strategy, but it can sink a conventional or FHA application.
Standard underwriters look exclusively at your "Net Income" (the bottom line on your tax returns). If you gross $150,000 but write off $70,000, the bank calculates your income at $80,000, instantly disqualifying you for the home you actually afford. The 1099-Only Loan completely eliminates the tax return from the underwriting process.
How is my 1099 income calculated?
Because you're an independent contractor, the lender still assumes you have some expenses. Instead of digging through receipts or bank withdrawals, they apply a fixed expense factor to your gross 1099 earnings.
Why is this better than a bank statement loan?
Unlike Bank Statement Loans, which often penalize borrowers with a heavy 50% expense ratio, the 1099-Only loan is designed for gig workers and consultants who have very low overhead. Most programs apply a flat 10% to 25% expense factor.
- Example: You provide a 1099 showing you earned $120,000 last year.
- The lender applies a 10% expense factor ($12,000).
- Your qualifying income is locked in at $108,000 per year ($9,000 per month).
- It doesn't matter if your actual tax returns show you wrote off $50,000. The underwriter never sees the tax return.
How do you verify this year so far?
Because 1099 forms are only issued once a year (in January), the underwriter needs to verify that your income hasn't fallen off a cliff since your last 1099 was issued. To do this, they will typically ask for a YTD earning statement from your employer/contractor, or a few recent bank statements to verify that deposits are still consistently hitting your account.
Should I try FHA or conventional first?
Yes, if your tax returns support it. FHA and conventional loans treat 1099 earners as self-employed and qualify you on the net income from your recent tax returns, usually two years of them. When that net figure is high enough, those loans typically come with a lower rate and a smaller down payment than a 1099-only loan, so they're worth checking first.
The 1099-only loan earns its place when write-offs have pulled your net income below what you need. It costs more, because it's a non-QM loan priced for the extra flexibility, so the right answer depends on how far apart your gross and net income are. We run both before you commit to either. If you run your business through its own bank account, compare a bank statement loan too.
What do I need to qualify?
To use this highly specialized Non-QM program, you must fit the specific profile of an independent contractor.
Is this for me?
You must receive your income via IRS Form 1099. This program is perfect for:
- Real Estate Agents and Brokers.
- Independent IT Consultants and Freelance Writers.
- Truck Drivers and Owner-Operators.
- Gig Economy workers (Rideshare, Delivery, Contract labor).
W-2 and K-1 income: Most 1099-only programs are built for borrowers whose income comes mainly from 1099s. If you also have W-2 income, some lenders let you combine the two and others don't, so we match you to the one that fits. If your income is reported on a K-1, a bank statement loan is usually the better route.
Requirements at a glance
Been declined because of write-offs?
Tell us what your 1099s show and how much you write off.
We'll work out your qualifying income on the phone, the same day, and tell you whether a 1099-only loan or a standard loan gets you the better deal.
Get Pre-Approved for a 1099-Only Loan TodayAAA Capital Funding, Inc. NMLS #374739
Self-employed? Underwriters don't use the number at the bottom of your return.
Depreciation, depletion, business use of home and one time expenses get added back before anyone decides what you earn. The usable figure is often higher than people expect. You don't need to send me anything to find out.
Call 888-601-8344 and walk me through how you're set up. Under ten minutes on the phone and you'll have the number that actually gets used, the same day.
Text 954-816-8820 if that's easier.
AAA Capital Funding, Inc. · NMLS #374739 · Jason J. Sarji, NMLS #374700