What Is a 1099 Loan?
A 1099 loan — also called a 1099-only mortgage — allows independent contractors, freelancers, gig workers, and self-employed borrowers to qualify for a home loan using their 1099 income statements instead of tax returns. Because many 1099 earners show significantly reduced taxable income after deductions, they often can’t qualify for a conventional mortgage despite having strong gross income.
DiVita Home Finance offers 1099 mortgage programs in California through our wholesale non-QM lender network, with no tax returns required.
How 1099 Loans Work in California
Lenders offering 1099 mortgage programs typically average your gross 1099 income over 12 or 24 months, ignoring business expense deductions. This allows borrowers whose adjusted gross income (AGI) on their tax returns shows a much lower number to qualify at their actual earning capacity.
Common 1099 Borrower Profiles
- Freelance consultants, designers, and engineers in the Bay Area and Silicon Valley
- Real estate agents and mortgage brokers
- Uber/Lyft drivers and gig economy workers
- Independent contractors in construction, IT, and healthcare
- Sales professionals on commission-only income
- Content creators and influencers
1099 Loan Requirements in California 2026
| Requirement | Typical Range |
|---|---|
| Income documentation | 12 or 24 months 1099s (most recent) |
| Minimum credit score | 620 (some programs 580) |
| Down payment | 10%–20% depending on loan size |
| Debt-to-income ratio | Up to 50% for strong profiles |
| Self-employment history | 12–24 months in same field |
| Loan amounts | $150,000–$3,000,000+ |
| Property types | SFR, condo, 2–4 unit, investment |
1099 Loan vs. Bank Statement Loan: Which Is Right for You?
Both programs are designed for self-employed borrowers, but they work differently:
| Feature | 1099 Loan | Bank Statement Loan |
|---|---|---|
| Income source | IRS 1099 forms | Personal or business bank deposits |
| Best for | Contractors with clean 1099 income | Business owners with mixed income |
| Tax returns needed? | No | No |
| Rate premium vs. conventional | 0.25%–0.75% | 0.25%–0.75% |
If you receive primarily 1099 income, a 1099-only loan is often simpler. If you have business income flowing through a business bank account, a bank statement loan may be a better fit.
California Counties Where We Close 1099 Loans
DiVita Home Finance closes 1099 loans throughout California including the Bay Area, Los Angeles, San Francisco, East Bay, Orange County, and San Diego.
Get Pre-Approved for a 1099 Loan in California
We can typically issue pre-approval within 24–48 hours with just your 1099s and a credit pull. No tax returns. No W-2s. Call us to get started.
📞 (800) 239-1103 | Apply Online
