I’m Michael DiVita — DRE #01372066 | NMLS #241655, DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. Call (800) 239-1103.
Real estate agents face a unique mortgage challenge: your income is strong, your commissions are real, but your tax return — after deducting marketing costs, vehicle expenses, MLS fees, staging costs, and office expenses — often shows a fraction of what you actually earned. Conventional lenders use that reduced tax return figure. Non-QM lenders do not. Here’s how California real estate agents get approved.
The Real Estate Agent Income Problem
As a commissioned real estate agent or broker, you receive 1099 income from your brokerage. Most top-producing agents write off $40,000 to $100,000 or more in annual business expenses — which is smart tax planning but devastating for a conventional mortgage application.
An agent earning $280,000 in gross commissions who writes off $120,000 in expenses shows $160,000 to the IRS. A conventional lender will qualify them on $160,000 minus additional adjustments, potentially qualifying them for far less than their actual earning power supports.
Best Mortgage Options for Real Estate Agents
1099 Loan
The most straightforward option for agents. The lender collects your 1099s from the past one or two years and qualifies you on your gross commission income before deductions. $280,000 gross qualifies as $280,000 — not the post-write-off figure. Learn more about 1099 loans.
Bank Statement Loan
If your commissions deposit into a business or personal checking account, a bank statement lender will average those deposits over 12 or 24 months. Many agents with varying monthly income prefer this approach because it smooths out the high months and low months into an accurate average. A 24-month bank statement average typically captures a more complete picture of your earning cycle than a single year’s 1099. Learn more about bank statement loans.
Conventional Loan (If Your Returns Support It)
If your adjusted gross income on your tax returns is sufficient after write-offs — typically possible for agents who don’t aggressively write off all eligible deductions — conventional financing offers the lowest rates. The trade-off is that you qualify on a lower income figure. Worth running the numbers on both paths before deciding.
Key Qualifications
- At least 1–2 years as a licensed California real estate agent
- Minimum 620 FICO score (700+ for best rates on non-QM products)
- 10–20% minimum down payment depending on loan type and property
- Active California real estate license (documentation required)
- 12 or 24 months of bank statements (for bank statement loans)
Agents Are Our Clients and Referral Partners
I work closely with real estate agents across California — many of whom I’ve also helped personally with their own home purchases. I understand your income structure, I can move quickly on pre-approvals, and I’m available on weekends during active searches. Many of the agents I’ve worked with also refer their own clients to DiVita Home Finance — particularly buyers with complex income situations that retail lenders won’t touch.
Frequently Asked Questions
Can a real estate agent get a mortgage using commission income in California?
Yes — but the loan type matters. Conventional lenders qualify real estate agents on adjusted gross income from tax returns, which is often reduced significantly by business deductions. Non-QM options like 1099 loans and bank statement loans qualify agents on gross commission income or actual deposits — a more accurate picture of what you earn. DiVita Home Finance works with 40+ wholesale lenders and can find the product that matches your actual income profile.
What is a 1099 loan for real estate agents?
A 1099 loan qualifies you on your gross commission income as reported on your 1099 forms — before business expense deductions. If you earned $280,000 in commissions but wrote off $120,000 in expenses, a conventional lender uses $160,000; a 1099 lender uses $280,000. This can dramatically increase your qualifying loan amount and is specifically designed for commissioned salespeople, freelancers, and self-employed workers.
How long do I need to be a licensed agent to qualify for a mortgage?
Most lenders require at least 2 years of self-employment/commission history before counting that income. However, some non-QM and portfolio lenders will accept 1–2 years with a strong track record and documented license history. If you’ve been a W-2 employee at a brokerage recently and just went independent, the transition timing matters — call DiVita Home Finance to discuss your specific situation.
Should a real estate agent use a bank statement loan or a 1099 loan?
It depends on your income documentation and how it flows. If your commissions are consistently deposited into a business checking account and your deposit history shows strong, regular income, a bank statement loan often produces a higher qualifying income by smoothing out the variable months. If your 1099s are clean, high, and consistent year-over-year, the 1099 loan is often simpler. DiVita Home Finance runs both options to see which produces the stronger qualification before you choose.
Related: Self-employed mortgage hub | 1099 loans | Bank statement loans
Talk to Michael Directly
DiVita Home Finance | Tiburon, CA | Licensed since 2007. Michael DiVita DRE #01372066 | NMLS #241655. Company DRE #01818285 | NMLS #323700.
💬 Text: (310) 849-9124
