1099 Loans Near Me

What is a 1099 Loan?

1099 loans are for independent contractors, freelancers and gig workers who receive IRS Form 1099 instead of W-2s. These loans are for people who don’t have a steady paycheck but generate significant income through non-traditional work. Instead of using W-2s or pay stubs, lenders use your 1099 forms, bank statements and other financial documents to verify income and qualify you for a mortgage.

1099 loans are perfect for self employed borrowers with variable income streams, for those who would otherwise struggle to meet the documentation requirements of a traditional loan.

1099 Loan Features:

• Income verified through 1099 forms: Lenders look at your 1099 income over the past 1-2 years to determine loan eligibility.
• No W-2s or pay stubs required: Unlike traditional loans, 1099 loans don’t require typical employment verification.
• Flexible qualification criteria: Designed for contractors, freelancers and gig workers.

When to Use a 1099 Loan?

1099 loans are for independent contractors, freelancers or anyone working in the gig economy who don’t have the regular, documented income that W-2 employees have. These loans are perfect for:

1. Freelancers and gig workers: If your income comes from multiple sources, such as freelancing or gig platforms, a 1099 loan allows you to qualify based on your earnings without needing to show traditional employment records.
2. Contractors or consultants: Independent contractors who receive 1099 forms instead of W-2s can use their earnings to qualify for a mortgage. Lenders look at your overall 1099 income, so it’s easier to get approved without the typical verification process.
3. Self employed individuals: Many self employed people who operate on a contract basis find it hard to provide the documentation required for a conventional loan. A 1099 loan is an alternative solution, which focuses on your business income rather than your employment status.

If your primary income source is 1099-based, this loan type simplifies the qualification process and allows you to get the financing you need, whether for buying or refinancing.

1099 Loan Benefits

1099 loans has several advantages that are tailored to self employed and independent contractors:* No employment documentation required: Borrowers don’t need to provide pay stubs, W-2s or tax returns. Your 1099 forms and bank statements are proof of income.

• Flexible loan options: 1099 loans offer fixed-rate and adjustable-rate mortgage options, so you can chose the terms that fit your situation.
• For those with fluctuating income: If your income varies from month to month, a 1099 loan can accommodate the ups and downs and qualify you based on your average income over a specified period.
• Customized qualification criteria: Lenders can tailor the loan terms to your financial profile, often taking into account your overall income and assets, even if your income is variable.
• Larger loan amounts: If your business or freelancing income is big, a 1099 loan allows you to get larger loan amounts than you would with a traditional loan.

1099 Loan Considerations

While 1099 loans are flexible for self employed borrowers, they also have requirements and potential drawbacks:

• Larger down payments: Lenders may require a higher down payment (often 10-20%) for 1099 loans because of the risk associated with non-traditional income streams.
• Higher interest rates: Because of the income variability, lenders may charge higher interest rates than they would for W-2 employees with steady income. This reflects the perceived risk of lending to self employed.
• Income documentation: Lenders will require 12-24 months of 1099 forms and bank statements to verify your income. Be prepared to provide detailed financial records that show consistent income over this period.
• Credit score requirements: To qualify for a 1099 loan you’ll need a good credit score, usually 620 or higher. Borrowers with lower credit scores may still qualify but could get higher rates or need to put a larger down payment.
• Tax implications: While 1099 loans are great for independent contractors, they may require additional tax planning. Make sure you understand your income and tax liabilities before applying.

Is a 1099 Loan for You?

A 1099 loan may be for you if:

• You get a significant portion of your income from 1099 forms rather than W-2s.* You’re self employed, a freelancer or an independent contractor with non-traditional income streams.
• You can provide income documentation through 1099 forms and bank statements.
• You’re okay with the possibility of higher interest rates or a larger down payment for flexible qualification criteria.

If you have a solid 1099 income history but don’t meet the strict documentation requirements of a traditional loan, a 1099 loan can help you get the financing you need.

How to Apply for a 1099 Loan

Applying for a 1099 loan is easy with Keyswag Lending. We work with self employed borrowers, freelancers and independent contractors to help them navigate the challenges of getting a mortgage.

Here’s how we can help:

1. Initial consultation: We’ll review your 1099 income, bank statements and financial goals to see if a 1099 loan is right for you.
2. Customized loan options: We offer loan programs specifically designed for 1099 earners so you get the terms that fit your situation.
3. Income verification: We’ll walk you through the process of providing your 1099 forms and bank statements to prove your income and ensure a smooth approval process.
4. Quick approval and funding: Once your application is submitted, we work with 1099 loan lenders to get you fast approval and funding so you can move forward with your home purchase or refi quickly.

At Keyswag Lending we understand the challenges self employed borrowers face and we’re here to provide you with the mortgage solutions you need to succeed.

Ready to Get Started?

If you’re ready to apply for 1099 loans contact us today for a free consultation. We’ll guide you through the process and get you the right loan for your situation.