Contractor & Consultant Financing • Austin & Texas

1099-Only Mortgages in Texas

Qualify on Gross 1099 Earnings. Flat 10% Expense Factor. No Tax Returns.

Independent contractors, consultants, and real estate professionals frequently face mortgage rejections because business write-offs deplete their net taxable income. Adam Styer offers 1099-only mortgage programs that qualify you on your gross 1099-NEC / 1099-MISC earnings using a simple, flat 10% expense factor—eliminating hundreds of pages of bank statements and tax returns.

See My Options Book a 15-Min Call (512) 956-6010

By Adam Styer, Senior Loan Officer • NMLS #513013 • Company NMLS #2072896

Income Proof
1 or 2 Years 1099s
Qualify on gross earnings statements
Expense Factor
Flat 10% Default
Keep 90% of your gross 1099 revenue as income
Tax Returns
0 Tax Returns
No Schedule C, 1040s, or corporate returns
Down Payment
From 10% to 15% Down
Purchase primary homes, second homes, and rentals
What should I know about this option?

What Is a 1099-Only Mortgage in Texas?

A 1099-only mortgage is a Non-QM loan designed specifically for sole proprietors, 1099 independent contractors, tech consultants, and real estate agents. While conventional loans evaluate net profit after all business expenses on IRS Form 1040 Schedule C, 1099 programs start from your gross 1099 earnings.

Underwriters apply a flat 10% expense factor to your gross 1099 total (crediting 90% as qualifying income) and divide by 12 or 24 months. You provide your 1099 statements and proof that you are still working with the payor or in the same line of work. No tax returns, transcripts, or detailed bank audits are required.

Common Situations

Who This Program Is Built For

Clear borrower profiles where this specialized documentation path provides approval certainty without tax penalties.

Tech Contractors & Consultants

Contract engineers, developers, and project managers in Austin working on 1099 agreements for tech enterprises.

Licensed Real Estate Agents

Realtors receiving 1099 commission checks whose auto, marketing, and client expenses wipe out net income on Schedule C.

Locum Tenens & Medical Professionals

Traveling nurses, physicians, and specialists earning high hourly 1099 rates across Texas hospital networks.

Gig Economy & Creative Freelancers

Copywriters, designers, cinematographers, and specialists with steady, high-volume contract billing.

Options & Milestones

Simple Options & 3-Step Process

Predictable underwriting milestones backed by wholesale lender access.

1-Year 1099 Program

Qualify using your most recent 1-year 1099 statement. Ideal for contractors who saw a major income surge in the latest tax year.

Best for: Fast-growing recent contract revenue

2-Year 1099 Program

Averages gross 1099 earnings across two consecutive tax years, unlocking the most competitive interest rates and highest loan-to-value.

Best for: Established 1099 contractors (2+ years)

1099 + W-2 Co-Borrower

Combine your 1099 contract income with a spouse or partner's standard W-2 earnings on one unified application.

Best for: Dual-income households
01

1099 Income Calculation

Adam reviews your 1099 statements, applies the 10% expense factor, and calculates your exact monthly qualifying income.

02

Wholesale Pricing Match

We scan many wholesale lenders for the most aggressive 1099 rates, lowest down payment requirements, and minimal reserve rules.

03

Conditions Up Front

Without tax returns or Schedule C depreciation calculations to review, underwriting moves swiftly to a clear-to-close.

Illustrative Scenario

In Action: A Clear Scenario

Real numbers showing how alternative documentation qualifies real Texas business owners.

Illustrative Case • Tech Contractor Austin (North Austin / Domain), Texas

Domain Software Contractor — $650,000 Purchase via 1099s

The Situation: A software engineer working as a 1099 contractor in Austin grossed $220,000 on their 1099-NEC. They wanted to buy a $650,000 home near The Domain with 10% down ($65,000).

The Challenge: Their tax accountant wrote off a home office, computer hardware, travel, and vehicle depreciation, leaving net taxable profit on Schedule C at only $54,000 ($4,500/month). A retail bank told them their maximum purchase budget was $280,000.

The Wholesale 1099 Solution: Adam placed the loan into a 1-year 1099-only program. Applying the standard 10% expense factor to the $220,000 gross resulted in $198,000 in qualifying income ($16,500/month). The borrower qualified easily with a 24% DTI, approved with zero tax returns.

Disclosure: Illustrative scenario based on composite borrower profile. Actual interest rates, loan limits, and qualification guidelines depend on credit profile, property appraisal, and lender criteria.

Supporting Research & Worksheets

Explore the Details

In-depth underwriting guidelines, loan matrices, and interactive tools in our specialist resources.

Self-Employed Mortgage Austin Overview Explore Options →

Compare 1099-only loans against bank statement and conventional mortgage paths.

Bank Statement Mortgage Guide Explore Bank Statements →

When bank statement deposits might qualify you for more purchasing power than 1099s.

Monthly Mortgage Payment Calculator Calculate Payment →

Model monthly principal, interest, taxes, and insurance for your purchase target.

Texas Closing Costs & Fee Breakdown View Breakdown →

Understand title insurance, escrow reserves, and lender fees in Central Texas.

How the Math Works →

1099-Only vs. Bank Statement →

Clear Answers

Frequently Asked Questions

Straightforward answers to the questions self-employed borrowers ask most.

How does the 10% expense factor work on a 1099 loan?

Underwriters take your gross 1099 revenue and deduct 10% for estimated business expenses, crediting the remaining 90% as qualifying net income. For example, if you gross $150,000, your qualifying income is $135,000 ($11,250/month).

Do I need to submit tax returns or Schedule C?

No. On genuine 1099-only mortgage programs, tax returns, 1040s, and Schedule C are not requested or reviewed. Your qualifying income is established solely from your 1099 statements and proof of continuing business.

Can I qualify with only 1 year of 1099 history?

Yes! While many lenders prefer 2 years, we have wholesale programs that allow qualification based on a single year of 1099 earnings, provided you worked in the same line of work previously (e.g. transitioning from W-2 to 1099 in the same industry).

What credit score is required for a 1099 mortgage?

Minimum credit scores typically start at 620 to 660, with the best interest rates and highest loan-to-value (up to 90% LTV) available for credit scores of 720 and above.

Can 1099 loans be used for investment properties?

Yes. 1099-only mortgages can be used to purchase or refinance primary residences, second vacation homes, or residential 1–4 unit investment properties.

The Wholesale Advantage • Many wholesale lenders • Wholesale Pricing Without Corporate Bank Margins • Clear communication and the conditions list up front • Direct 1-on-1 Strategy from Adam Styer

Fast Scenario Review

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