Traditional home loans, such as Conventional, FHA, VA, Jumbo, and USDA loans, often pose challenges for applicants who earn their income through 1099 wages. These types of loans typically rely on the taxable portion of the applicant's salary for qualification, which can be limiting for those who are self-employed or have non-traditional income streams.
A 1099 Mortgage, also known as a self-employed mortgage, is designed to meet the needs of individuals who may not have the standard documentation used to verify income, such as W-2s or extensive tax returns. Instead, these borrowers can qualify for a mortgage based on 1-2 years of 1099 income documentation.
This type of mortgage is ideal for entrepreneurs, freelancers, small business owners, and other self-employed individuals, offering the opportunity to secure a mortgage at competitive rates without the typical hurdles associated with proving income through traditional means.
The short answer is yes. However, the process requires a bit more than just providing your 1099 forms. The first step in securing a mortgage as a 1099 employee is prequalification. This can often be done by contacting your bank or filling out an online questionnaire with basic information from your Form 1099 income report, along with details about your debts and assets. This initial step gives you an estimate of how much you may be able to borrow to purchase your home.
1099 Mortgages provide a valuable opportunity for self-employed individuals to secure financing tailored to their unique income situations, making homeownership more accessible without compromising on the quality or terms of the loan.
We offer a personalized and distinctive approach to mortgages, combining human-driven insights with technical expertise to create a perfect hybrid. Our lending solutions are designed to expedite loan processing, delivering faster results while substantially reducing costs.
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"Hi, my name is Chet Decker. I'm the Executive Vice President at The Mortgage Link, Inc., where we specialize in providing personalized mortgage solutions, fast and customized quotes, competitive rates, and exceptional service with integrity."
For Texas Consumers Only: Consumers wishing to file a complaint against a company regarding the origination and/or servicing of your mortgage loan or a complaint against a residential mortgage loan originator concerning residential mortgage loans on real estate located in Texas should complete and send a complaint form to the Texas department of savings and mortgage lending, 2601 north Lamar, suite 201, Austin, Texas 78705. complaint forms and instructions may be obtained from the departments website at www.sml.texas.gov. a toll-free consumer hotline is available at 1-877-276-5550.
The department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed residential mortgage loan originators. a written application for reimbursement from the recovery fund must be filed with and investigated by the department prior to the payment of a claim. for more information about the recovery fund, please consult the departments website at www.sml.texas.gov.
Standard LSM disclosure: This is not a commitment or offer of credit. All applications must be submitted in writing and are subject to credit approval. Not all borrowers who apply will be approved.
