The Michigan 1099 Mortgage Loan Center
Independent contractors get squeezed from both sides at mortgage time. You write off vehicle costs, supplies, software, and a home office, which is exactly what your tax professional tells you to do. Then a conventional lender qualifies you on the net income that survives those deductions, and suddenly a contractor grossing six figures looks like a marginal borrower on paper.
A 1099 income loan solves this the direct way. Programs available through our lending partners qualify you on the gross earnings shown on your 1099 forms, typically counting 90% or more of that income, with no tax returns or W-2s in the file. Riverbank Finance LLC arranges 1099 loans for contractors across Michigan, from our home base in Grand Rapids to every corner of the state.
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How does a 1099 mortgage loan work?
A 1099 loan is a non-QM mortgage that documents your income with the 1099 forms your clients already send you. Instead of two years of tax returns, the lender collects your most recent one to two years of 1099s plus a year-to-date earnings statement, then qualifies you on your gross contractor income before write-offs.
The calculation is refreshingly simple. Most programs apply a fixed expense factor, often around 10%, to your gross 1099 earnings, so roughly 90% to 100% of what your clients paid you counts as qualifying income. Compare that to a conventional underwrite, where every Schedule C deduction shrinks the income number, and you can see why the same contractor often qualifies for substantially more house through a 1099 program.
The 1099s are typically issued in your personal name, though forms issued in a company name can work too, provided a CPA letter verifies the 1099 amounts and confirms a Schedule C was filed for the past two years. A year-to-date earnings statement is specifically required for loans with note dates after April 15. Lenders also want to see consistency: typically two years in the same line of work, though some programs accept one year of self-employment if your file documents five years of prior employment in the same field or an occupation with similar responsibilities. If your income runs through a business entity with many revenue streams rather than a handful of 1099s, a Michigan bank statement loan is usually the better tool, since it measures your deposits rather than your forms. Both sit inside the family of non-QM loans in Michigan, and a loan officer can price the two side by side in a single call.
For more information on 1099 loans call us at 800-555-2098 or apply online today!
Key Benefits of a 1099 Income Loan
- Qualify on Gross Earnings: Typically 90% or more of your gross 1099 income counts, before the deductions that shrink your taxable income. You get credit for what you actually earned.
- No Tax Returns or W-2s: The income file is your 1099s and a year-to-date earnings statement. No returns, no IRS transcripts.
- Competitive Down Payments: As little as 10% to 15% down for qualified borrowers, with the lowest down payments reserved for the strongest credit profiles.
- Every Kind of Contractor: Realtors, IT consultants, travel nurses, hair stylists, tradespeople, and delivery and rideshare drivers all fit, as long as the income arrives on a 1099.
- Flexible Loan Purposes: Purchase, rate and term refinance, and cash-out refinance are all available, on primary homes, second homes, and investment properties.
Think contractors need two years of tax returns to buy a home? That is the conventional rulebook, not the only rulebook. The 1099 program qualifies you on gross earnings with a fraction of the paperwork. See What You Qualify For
1099 Loan Requirements in Michigan
Guidelines vary by lender and are subject to change, but the 1099 programs available through our lending partners generally look for the following:
- Most recent 1 to 2 years of 1099 forms; forms issued in a company name are allowed with a CPA letter verifying the amounts and confirming a Schedule C was filed for the past two years
- Year-to-date earnings statement (required for loans with note dates after April 15)
- Minimum credit score of 640; a 720+ score unlocks the maximum 90% LTV
- About 2 years in the same line of work (some programs accept 1 year of self-employment with documented 5 years of prior experience in the same field or a similar occupation)
- Cash reserves of 3 months of payments for loan amounts up to $1,000,000, 6 months up to $2,000,000, and 9 months up to $3,500,000, plus 2 months per additional financed property (capped at 15 months total)
Loan amounts through our lending partners range from $100,000 up to $3.5 million (the top end available on primary residence rate and term refinances), covering everything from a first home in Kent County to a lakefront property up north. Purchase, rate and term refinance, and cash-out transactions are all on the menu. Cash-out refinances go up to 80% LTV on primary residences and second homes, and 75% LTV on investment properties, with cash-in-hand caps of $1,000,000 for LTVs up to 50%, $750,000 for LTVs from 50.01% to 60%, and $500,000 for LTVs above 60%.
As with any non-QM loan, pricing depends on your credit score, down payment, and documentation type rather than a single posted rate. Stronger files earn stronger terms, and your loan officer can show you where you land before you commit to anything.
Can gig workers get a mortgage with 1099 income?
Yes, and this is where 1099 loans in Michigan earn their keep. Independent work is mainstream now. If you drive for a delivery platform, take travel nursing contracts, sell real estate on commission, or consult under your own name, your 1099s are a legitimate income record, and these programs treat them that way. The main tests are history and consistency: roughly two years of 1099 income in the same field, deposits that back up the story, and a credit score of 640 or better. If your gig income is newer than that, call us anyway. A loan officer can map out what you need and when you will get there.
Apply for a 1099 Loan in Michigan
The fastest path is a phone call. Reach our team at 800-555-2098 and a licensed loan officer will confirm whether a 1099 loan is your best fit, tell you exactly which documents to gather, and give you a realistic read on pricing for your credit tier.
Prefer to start online? Fill out the quote form above and we will review your information and respond promptly with your options, no tax returns required.
Start Your 1099 Loan Application
What is a 1099 mortgage loan?
A 1099 mortgage loan is a non-QM home loan that uses your 1099 income forms, typically the most recent 1 to 2 years plus a year-to-date earnings statement, in place of tax returns. You qualify on your gross contractor income rather than the smaller net figure left after deductions.
How is a 1099 loan different from a bank statement loan?
A 1099 loan fits contractors paid by one or a few companies that issue 1099 forms. A bank statement loan fits business owners with many income sources flowing through their bank accounts. If you receive clean 1099s, the 1099 program is usually the simpler file; if your income is spread across many clients and payment methods, bank statements often tell a better story.
How many years of 1099 income do I need for a mortgage?
Most programs want your most recent 1 to 2 years of 1099s and about 2 years in the same line of work. Some programs available through our lending partners accept 1 year of self-employed 1099 income if your file documents 5 years of prior employment in the same field or an occupation with similar responsibilities.
What credit score do I need for a 1099 loan?
The minimum credit score is 640. Higher scores unlock better terms, and the lowest down payment option of 10% (90% LTV) requires a 720 score or above.
Can I use a 1099 loan for an investment property or second home?
Yes. Programs available through our lending partners cover primary residences, second homes, and investment properties, for purchases as well as rate and term and cash-out refinances.
Do 1099 loans require cash reserves?
Yes. Reserve requirements scale with loan size: 3 months of mortgage payments for loan amounts up to $1,000,000, 6 months for loans up to $2,000,000, and 9 months for loans up to $3,500,000. If you own other financed properties, add 2 months of reserves per additional property, up to a maximum of 15 total months. Your loan officer will confirm the exact requirement for your file.
Submit your information now and a licensed residential loan officer will contact you within 24 hours. If you need immediate assistance then please call us now at 800-555-2098!
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