— NON-QM LOAN PROGRAMS
1099 Income
Loan Programs
Flexible mortgage solutions for independent contractors, freelancers, and self-employed borrowers using 1099 income verification in Hawaii and other markets where Pacific Home Loans is licensed.
— ABOUT NON-QM LOANS
Hawaii 1099 Income
Loan Programs
Pacific Home Loans offers 1099 income loan programs for independent contractors, freelancers, and self-employed borrowers throughout Maui, Oahu, Kauai, and the Big Island. A 1099 loan is a type of alternative documentation (Non-QM) financing that allows borrowers to qualify based on income reported on IRS Form 1099, rather than traditional W-2s or tax returns.
Many independent contractors and self-employed professionals earn significant income but carry legitimate business deductions that reduce their taxable income on tax returns. A 1099 income loan evaluates gross earnings before deductions, providing a more accurate representation of actual earning capacity.
Multi-State Availability
Pacific Home Loans provides 1099 income loan solutions in multiple states, including Hawaii, California, Nevada, and other markets where we are licensed. While this page focuses on Hawaii-specific guidance, these programs may be applied to transactions in other states based on borrower profile, property location, and program eligibility.
— PROGRAM DETAILS
How 1099 Income
Loans Work
Instead of relying on tax returns or W-2s, 1099 income loans evaluate income using:
- One or two years of IRS Form 1099 statements
- Year-to-date earnings documentation
- Verification of self-employment history – typically two years in the same industry
Income is calculated based on 1099-reported gross earnings, which allows borrowers with significant write-offs or business deductions to qualify based on actual income rather than reduced taxable income.
1099 Loan vs Bank Statement Loan
Both programs serve self-employed borrowers but use different income verification methods. A 1099 loan uses IRS Form 1099 statements to verify gross income – best suited for independent contractors and freelancers who receive documented 1099 payments from clients or employers. A bank statement loan analyzes 12 to 24 months of deposit activity – better suited for business owners with income from multiple sources or cash-heavy businesses. Our team can evaluate both options and recommend the most appropriate structure based on your income profile.
— PROGRAM DETAILS
Who These Programs
Are Designed For
1099 income loans may be appropriate for:
- Independent contractors working for one or more clients
- Freelancers and consultants across professional services
- Real estate professionals — including agents and brokers — with 1099 commission income
- Healthcare professionals working as independent contractors or locum tenens
- Technology consultants, designers, and creative professionals
- Self-employed borrowers with documented 1099 income streams
These programs are especially useful when tax returns understate actual income due to legitimate business deductions, income is consistent but not W-2 documented, or traditional underwriting does not reflect true earning capacity.
Additional documentation may be required based on underwriting guidelines and investor overlays.
— SPECIALIZED FINANCING
Property &
Condominium Considerations
Eligible Property Types
1099 income loans may be used for primary residences, second homes, investment properties, and condominium properties subject to project eligibility.
For condominium projects requiring additional review:
→ PrimeResort™ Condo Financing
Loan Features & Flexibility
1099 income loan programs may offer:
- Qualification based on gross 1099 earnings rather than taxable income
- No tax returns required in many programs
- Primary residence, second home, and investment property eligibility
- Flexible structuring for complex income profiles
Loan structure varies based on borrower profile, property type, income documentation, and underwriting guidelines.
Documentation Requirements
Documentation requirements vary by program and borrower profile. Most 1099 income programs require:
- One to two years of most recent IRS Form 1099 statements
- Year-to-date earnings verification
- Verification of two years of self-employment in the same industry or field
- Credit profile review
Additional documentation may be required based on underwriting guidelines and investor overlays. Our team reviews each borrower’s full documentation profile before recommending a structure.
When Additional Structuring May Be Needed
Some transactions may require additional flexibility due to higher loan amounts, income from multiple 1099 sources, complex asset structures, or competitive purchase scenarios. In these cases, a bank statement loan or structured capital solution may be more appropriate.
→ Bank Statement Loan Programs
→ Portfolio Loans & Flexible Financing Solutions
— NON-QM LENDING
How 1099 Loans Fit Into the
PHL Lending Platform
Traditional Agency Financing – used when borrower eligibility meets standard requirements
↓
Alternative Documentation (Non-QM) – used for specialized borrower profiles such as ITIN qualification
↓
Portfolio Lending Solutions – used for high-value or complex transactions requiring advanced structuring
→ Non-QM Loan Options
→ Portfolio Loans & Flexible Financing Solutions
Compliance & Important Information
1099 income loans are non-agency mortgage products that may carry different pricing than conforming loans. They require full underwriting review and are subject to investor guidelines, overlays, and reserve requirements. Qualification and approval depend on borrower documentation, income verification, property eligibility, and investor criteria.
— COMMON QUESTIONS
1099 Loan
FAQ
Have a question not answered here? Our team is available to walk through your specific scenario.
