Best 1099 Income Lenders for Self-Employed Borrowers (2026)
1099 income loans let independent contractors and gig workers qualify using their 1099 forms — and the income reported on them — rather than two years of full tax returns. A streamlined alternative-doc path for borrowers paid as contractors instead of employees.
Typical Rates
7.25%–9.5% (approx.)
Max LTV
Up to 90% (purchase)
Typical Terms
30-year fixed or ARM
Min Credit
620–660
What Are 1099 Income Loans?
If you are paid as a contractor, your 1099s already document your earnings — so why hand over two years of tax returns full of deductions? 1099 income loans let lenders calculate qualifying income directly from your 1099 forms, sometimes applying a modest expense factor. For consultants, real-estate agents, drivers, and other independent earners, it is often the cleanest non-QM path to a mortgage on their own home.
Who Are 1099 Income Loans Best For?
- Independent contractors and 1099 employees
- Gig-economy and platform workers
- Commission-only earners paid via 1099
- Contractors with strong gross income but heavy deductions
Pros & Cons
Pros
- +Qualify using 1099 forms instead of full tax returns
- +Often simpler to document than bank statement loans
- +One- or two-year 1099 history accepted by many lenders
- +Available for owner-occupied purchase and refinance
Cons
- –Rates run above conventional financing
- –An expense factor may still reduce qualifying income
- –You need a consistent 1099 work history in the same field
- –Not every lender offers a dedicated 1099-only program
Best 1099 Income Lenders (11)
These lenders offer 1099 income loans, ranked by our editor rating. Click any lender for a full review with detailed terms and expert analysis.
| Lender | Rates | Max LTV | Min Credit | Speed | Best For | Rating |
|---|---|---|---|---|---|---|
| Griffin Funding | 7.25%–9.75% | 90% | 620 | 21–35 days | Self-employed borrowers, Apply direct (no broker) | 4.5 |
| Angel Oak Mortgage Solutions | 7%–9.75% | 90% | 620 | 25–40 days | Broadest non-QM menu, Via broker only | 4.5 |
| New American Funding | 7%–9.5% | 90% | 620 | 21–40 days | Apply direct (no broker), Full product menu | 4.0 |
| Newfi Lending | 7.25%–9.75% | 90% | 620 | 21–35 days | Apply direct (no broker), Non-QM specialist | 4.0 |
| Carrington Mortgage Services | 7.25%–10% | 85% | 600 | 25–45 days | Lower credit scores, Apply direct or via broker | 4.0 |
| Deephaven Mortgage | 7%–9.75% | 90% | 620 | 25–40 days | Non-QM pioneer, Via broker only | 4.0 |
| Acra Lending | 7.25%–10% | 90% | 600 | 25–45 days | Established non-QM lender, Via broker only | 4.0 |
| A&D Mortgage | 7.25%–9.99% | 90% | 620 | 25–45 days | Full non-QM menu, Via broker only | 4.0 |
| Newrez | 7%–9.75% | 90% | 620 | 25–40 days | Apply direct or via broker, Smart Series non-QM | 3.5 |
| LoanStream Mortgage | 7.25%–9.99% | 90% | 620 | 25–45 days | NanQ non-QM line, Via broker only | 3.5 |
| Champions Funding | 7.25%–10% | 90% | 600 | 25–45 days | CDFI lender, Via broker only | 3.5 |
Griffin Funding
4.5Griffin Funding is a consumer-direct lender that has built much of its brand around non-QM lending for the self-employed. Borrowers can apply directly online — no broker required — across bank statement, asset-based, 1099, and P&L programs in addition to conventional and VA loans.
7.25%–9.75%
90%
620
21–35 days
$100K–$5M
No experience required
Angel Oak Mortgage Solutions
4.5Angel Oak Mortgage Solutions is one of the largest and most established non-QM lenders in the country, with the broadest self-employed menu in the market. Important for consumers: Angel Oak Mortgage Solutions is a wholesale lender — you cannot apply directly and must work through a mortgage broker.
7%–9.75%
90%
620
25–40 days
$100K–$4M
No experience required
New American Funding
4.0New American Funding (NAF) is one of the largest privately held mortgage lenders in the country, offering a full retail menu that includes non-QM options for self-employed borrowers alongside conventional, FHA, VA, and jumbo loans. Borrowers apply directly through NAF.
7%–9.5%
90%
620
21–40 days
$100K–$5M
No experience required
Newfi Lending
4.0Newfi Lending is a non-QM specialist that operates a genuine consumer-direct retail channel in addition to wholesale. Self-employed borrowers can apply directly for bank statement, asset-utilization, 1099, and ITIN programs without going through a broker.
7.25%–9.75%
90%
620
21–35 days
$100K–$4M
No experience required
Carrington Mortgage Services
4.0Carrington Mortgage Services is a vertically integrated lender and servicer with a deep non-prime and non-QM focus. Its "Flexible Advantage" series targets self-employed and credit-challenged borrowers, and consumers can apply directly through Carrington's retail channel.
7.25%–10%
85%
600
25–45 days
$100K–$4M
No experience required
Deephaven Mortgage
4.0Deephaven Mortgage is a pure non-QM lender (owned by Pretium) that has focused exclusively on alternative-documentation loans since 2012. For consumers, the key point is that Deephaven is wholesale and correspondent only — you reach its programs through a mortgage broker, not directly.
7%–9.75%
90%
620
25–40 days
$100K–$4M
No experience required
Acra Lending
4.0Acra Lending (formerly Citadel Servicing) is one of the oldest and largest dedicated non-QM lenders and an active securitizer. It is a wholesale lender — consumers reach its bank statement, 1099, P&L, ITIN, and other programs through a mortgage broker rather than applying directly.
7.25%–10%
90%
600
25–45 days
$100K–$4M
No experience required
A&D Mortgage
4.0A&D Mortgage is a Florida-rooted, nationwide non-QM specialist serving thousands of broker partners and an active issuer of non-QM securitizations. It is a wholesale and correspondent lender — borrowers reach its full self-employed menu through a mortgage broker.
7.25%–9.99%
90%
620
25–45 days
$100K–$5M
No experience required
Newrez
3.5Newrez is a large national lender and servicer (part of Rithm Capital) offering its "Smart Series" of non-QM products. It operates both retail and wholesale channels — consumers can apply directly, though the broadest non-QM guidelines often live on the broker side.
7%–9.75%
90%
620
25–40 days
$100K–$4M
No experience required
LoanStream Mortgage
3.5LoanStream Mortgage offers a well-known non-QM line branded "NanQ," covering bank statement, 1099, P&L, asset, and ITIN programs. The NanQ line is a wholesale staple — consumers reach it through a mortgage broker rather than applying directly.
7.25%–9.99%
90%
620
25–45 days
$100K–$4M
No experience required
Champions Funding
3.5Champions Funding is a 100% non-QM lender and a Treasury-designated Community Development Financial Institution (CDFI), a status that supports more flexible, exception-based underwriting for underserved borrowers. It is a wholesale lender — consumers apply through a mortgage broker.
7.25%–10%
90%
600
25–45 days
$100K–$5M
No experience required
Frequently Asked Questions About 1099 Income Loans
How is income calculated on a 1099 loan?
Lenders take the gross income reported on your 1099 forms (typically one or two years) and may apply an expense factor — often around 10% by default, or your actual expense ratio if documented — to arrive at qualifying income. This usually produces a higher number than your net tax-return income after write-offs.
How is a 1099 loan different from a bank statement loan?
A 1099 loan reads income straight from your 1099 forms, which is simple if your income arrives mostly via 1099. A bank statement loan averages your actual deposits, which fits better if you have multiple income sources or cash-based revenue. Many lenders offer both and will use whichever produces a stronger qualification.
Can gig workers use a 1099 income loan?
Yes, provided your gig income is reported on 1099 forms (now often a 1099-NEC or 1099-K) and shows a consistent history. Lenders look for stability and continuity in the same type of work, typically over the prior one to two years.
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