I’m Michael DiVita — DRE #01372066 | NMLS #241655, DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. I’ve been in California mortgage lending since 2000 and founded DiVita Home Finance in 2007. Independent contractors are a significant part of my practice — the 1099 and bank statement programs solve the documentation problem cleanly. Call (800) 239-1103.
Independent contractors are the backbone of California’s gig and project economy. But the conventional mortgage system was built for employees with W-2s and predictable annual salaries. If you work on contract, you need a lender who understands your income structure.
The Independent Contractor Mortgage Problem
As an independent contractor, you file a Schedule C with your personal tax return. Every legitimate expense you deduct reduces your qualifying income for conventional mortgage purposes. Many experienced contractors with $200,000 or more in annual billings show net income under $100,000 after write-offs — and qualify for mortgages that don’t match their financial reality. Non-QM programs look at the gross instead.
Loan Programs That Work for Independent Contractors
1099 Loan
If you receive 1099 forms from clients, a 1099 loan uses your gross contract earnings as qualifying income — no deductions applied. The lender averages your 1099 income over one or two years and qualifies you on that number. A contractor billing $200,000/year who nets $90,000 after deductions qualifies on $200,000, not $90,000. See: Full 1099 loan guide.
Bank Statement Loan
If your clients pay via direct deposit or ACH to your business account, a bank statement loan averages those deposits over 12 or 24 months. This works particularly well for contractors with long-term retainer clients who pay consistently each month — the averaging captures your real cash flow. See: Full bank statement loan guide.
P&L Only Loan
If you maintain business books with a CPA or bookkeeper, a P&L only loan uses your 12-month profit and loss statement without requiring tax returns or bank statements. Simplest documentation structure if your CPA already produces monthly financials. See: Full P&L loan guide.
What Independent Contractors Typically Need
Most programs require 12–24 months of 1099s or bank statements; proof of active contracting work (current contracts, recent invoices, or client letters); a minimum 620 FICO score (700+ for best pricing); and a 10–20% down payment depending on the program. If you’ve been contracting in the same field for less than 2 years but were previously employed in the same industry, lenders often accept the prior employment history as supplemental context for the shorter contracting period.
Frequently Asked Questions — Mortgage for Independent Contractors California
Can an independent contractor get a mortgage without using tax return income?
Yes — through 1099 loans, bank statement loans, and P&L loans. A 1099 loan qualifies on your gross 1099 earnings before Schedule C deductions. A bank statement loan uses 12 or 24 months of your actual business deposits. A P&L loan uses a CPA-prepared income statement. All three programs are specifically designed for independent contractors and other self-employed borrowers whose tax returns understate their real income. I’ve helped California contractors earning $150,000–$500,000+ gross qualify for mortgages using these programs when conventional lenders turned them away based on their Schedule C net income.
How long do I need to be an independent contractor to get a mortgage in California?
Most 1099 and bank statement programs prefer 2 years of documented contracting income for the strongest qualification — 24 months of 1099s or bank statements to average. Some programs will work with 12 months of documentation, particularly when there’s prior employment history in the same field. If you left a W-2 job 14 months ago and went independent in the same industry, many lenders will consider your combined history. The key is that income must be stable or growing — contractors with volatile month-to-month swings need a longer track record to demonstrate average income reliability.
What if my independent contractor income is growing rapidly?
Growing income is a positive signal but requires careful program selection. On a 24-month average, rapid growth means your qualifying income is lower than your current run rate — if you earned $100K year 1 and $250K year 2, the average is $175K, not your current $250K pace. In this case, a 12-month bank statement or 1099 program often produces a better qualifying figure by capturing only the most recent period. I model both 12-month and 24-month scenarios upfront to identify which produces the stronger qualifying income for your specific file.
Related: Self-employed mortgage hub | 1099 mortgage loans | Bank statement loans
Talk to Michael Directly
DiVita Home Finance | Tiburon, CA | In lending since 2000, founded DiVita Home Finance in 2007. Michael DiVita DRE #01372066 | NMLS #241655. Company DRE #01818285 | NMLS #323700.
💬 Text: (310) 849-9124
