1099 Income
Loan Programs

— ABOUT 1099 INCOME LOANS

Pacific Home Loans specializes in 1099 Income Loan programs for independent contractors, freelancers, consultants, commission-based professionals, and self-employed borrowers whose income is documented primarily through IRS Form 1099 reporting.

Traditional mortgage underwriting was built around W-2 income, pay stubs, and traditional employment structures. Today’s workforce looks very different. Independent contractors, gig-economy professionals, Realtors, consultants, and sales professionals often earn substantial income through 1099 reporting – while taking legitimate business deductions that reduce taxable income on traditional tax returns.

1099 financing solves that problem by focusing on gross 1099 income rather than tax-return net income.

As a hybrid mortgage bank and broker, Pacific Home Loans has been funding 1099 loans in-house since 2018 while maintaining access to one of the most diverse Non-QM investor shelves in the industry – giving 1099 earners both the speed of an in-house lender and the program breadth needed for different income structures, documentation periods, and property types.

Whether you are financing a primary residence, an investment property, a vacation rental, a non-warrantable condominium, a condotel, or a luxury second home, our team structures financing solutions designed around how independent professionals actually earn income.

— ABOUT 1099 LOANS

— PROGRAM DETAILS

For resort-designated, condotel, or non-warrantable condominium projects that require specialized review:
→ PrimeResort™ Condo Financing

Additional documentation may be required based on underwriting guidelines and investor overlays.

— HOW IT WORKS

1099 qualification focuses primarily on gross 1099 income, earnings consistency, income history, liquidity, and overall borrower profile.

Programs may typically require:

• One or two years of 1099 documentation
• Year-to-date income verification
• Continuity of earnings within the same profession or industry

Unlike conventional underwriting, 1099 financing evaluates the borrower’s actual earning power rather than relying exclusively on tax-return net income.

1099 Loans vs. Bank Statement Loans
Both 1099 and Bank Statement programs are designed for self-employed and independent-income borrowers, but they evaluate income differently:

1099 Loans
Best for: borrowers with strong documented gross 1099 income. Qualification is based primarily on IRS Form 1099 earnings.

Bank Statement Loans
Best for: borrowers qualifying based on deposit history and business cash flow. Qualification is based primarily on personal or business bank deposits.
→ Bank Statement Loan Programs

Pacific Home Loans evaluates both qualification methods to determine the strongest financing strategy for each borrower profile. In some cases, a borrower qualifies more strongly under 1099; in others, under Bank Statement; in others, a combination.

Additional documentation may be required based on underwriting guidelines and investor overlays.

— PROPERTY TYPES

1099 financing may be available for:

• Primary residences
• Second homes
• Investment properties
• Luxury homes
• Vacation rental properties
• Non-warrantable condominiums
• Resort condominiums
• Condotels
• Luxury investment properties

Project review may be required depending on condominium classification, occupancy, HOA structure, zoning, and investor guidelines.

— RESORT & INVESTMENT FINANCING

Many independent contractors and self-employed borrowers financing vacation rentals, non-warrantable condominiums, resort properties, luxury short-term rental homes, and condotels use 1099 financing because traditional tax-return analysis may not accurately reflect actual earnings.

1099 financing is commonly used by Realtors, consultants, sales professionals, entrepreneurs, and independent contractors purchasing resort and investment real estate.

For eligible non-warrantable resort condos with lower down payments (from 20%):
→ PrimeResort™ Vacation Rental Condo & Resort Financing

For condotels, luxury property financing, jumbo lending, and strategic structuring:
→ Portfolio Loans, Condotel Financing & Strategic Luxury Property Solutions

For investors qualifying primarily on rental cash flow:
→ DSCR / Investor Cash Flow Loan Programs

Additional documentation may be required based on underwriting guidelines and investor overlays.

— COMPARING PROGRAMS

Different Non-QM programs are designed for different borrower profiles and qualification strategies:

1099 Income Loans
Best for: independent contractors and freelancers using gross 1099 income documentation.

Bank Statement Loans
Best for: self-employed borrowers qualifying based on personal or business deposit history and cash flow.
→ Bank Statement Loan Programs

DSCR / Investor Cash Flow Loans
Best for: investors qualifying primarily based on the property’s rental income rather than personal income.
→ DSCR / Investor Cash Flow Loan Programs

Asset-Based Loans
Best for: high-net-worth borrowers qualifying based on liquid assets and real estate equity.
→ Asset-Based Loan Programs

Foreign National Loans
Best for: international buyers purchasing U.S. real estate.
→ Foreign National Loan Programs

— MARKETS SERVED

Pacific Home Loans has been structuring 1099 financing since 2018 across:

• Arizona
• California
• Colorado
• Hawaii
• Montana
• Nevada
• Oregon
• Tennessee
• Texas
• Washington

Program availability may vary depending on investor guidelines and property type.

— WHY PACIFIC HOME LOANS

1099 lending requires understanding independent-income structures, commission income, earnings consistency, contractor income analysis, and self-employed borrower qualification. Pacific Home Loans has been structuring 1099 financing since 2018 – and our team understands how to structure financing for Realtors, independent contractors, consultants, sales professionals, freelancers, and complex self-employed financial profiles.

In-House Funding Plus a Broker Shelf

Pacific Home Loans operates as a hybrid mortgage bank and broker. The majority of our Non-QM loans – 1099 included – are funded in-house, which means faster decisions, direct underwriting access, and control over the process from application to close. When a transaction fits better with another investor, our broker shelf gives us access to one of the most diverse 1099 program offerings in the industry.

That matters for 1099 borrowers specifically because investors handle 1099 income differently. Some apply heavier expense factors that reduce qualifying income; others use lighter factors. Some require two years of documentation; others accept one. Some treat commission income from a single payor more conservatively than diversified contractor income. The right program for a top-producing Realtor with one brokerage 1099 looks different from the right program for a consultant with five client 1099s. Having multiple investors on the shelf means we can match each borrower to the program that produces the strongest qualification – rather than forcing every file into a single investor’s formula.

We understand that gross earnings, strong income history, and actual cash flow often tell a very different story than traditional tax-return analysis alone.

— PHL CAPITAL PLATFORM

— COMMON QUESTIONS