💼 Mortgage Tips for 1099 Real Estate Professionals 📊

🧾 How Real Estate Agents Use 1099s to Qualify for Mortgages 🏡

May 23, 2025•2 min read

🧾 How Real Estate Agents Use 1099s to Qualify for Mortgages 🏡

💼 Mortgage Tips for 1099 Real Estate Professionals 📊

🧾 How Real Estate Professionals Can Use 1099s for Mortgage Approval

If you're a real estate agent or broker earning commission income, you've probably run into challenges when trying to qualify for a mortgage. Traditional W-2 income is easy for lenders to verify, but 1099 income? That’s a different story. However, with the right strategy and documentation, 1099 income can absolutely be used to secure mortgage approval.

Here’s how real estate professionals can leverage 1099s to buy or refinance a home.

📌 What Is 1099 Income?

Form 1099-MISC or 1099-NEC is issued to independent contractors, freelancers, and self-employed professionals—including real estate agents. It summarizes the total earnings from commissions and non-employee compensation over the year. Lenders view this type of income differently than salaried income, often requiring more documentation to verify stability and consistency.

🏦 Can You Qualify for a Mortgage with 1099 Income?

Yes—here’s how:
Mortgage lenders look for consistent and verifiable income. If you’ve been self-employed as a real estate professional for at least 2 years, your 1099 income can be used to qualify for most mortgage products, including conventional, FHA, and bank statement loans.

📁 Key Documents You’ll Need

To strengthen your mortgage application as a 1099 earner, gather the following:

Two years of 1099 forms
Two years of personal and business tax returns (with all schedules)
Year-to-date profit & loss (P&L) statement
Bank statements (to verify income deposits)

Lenders want to ensure your income is stable and likely to continue. If you've only been in business for 1 year, alternative documentation options may still be available through bank statement or non-QM loans.

💡 Bank Statement & Non-QM Options

Many real estate professionals benefit from bank statement loans, which use 12 to 24 months of business or personal bank deposits to calculate income—no tax returns required. This is especially useful if you write off a lot of business expenses and show low net income on paper.

🛠 Pro Tips to Strengthen Your Approval Odds

Separate your business and personal accounts to clearly show income.
Minimize write-offs in the years leading up to your home purchase if planning to use tax returns.
Keep your records organized and up to date—a solid P&L can make a big difference.
Partner with a mortgage broker who understands self-employed income and has access to flexible programs.

🎯 Final Thoughts

Real estate agents help others buy homes every day—why should qualifying for your own mortgage be harder? With strategic preparation and the right loan product, your 1099 income can open doors to homeownership or refinancing. Whether you’re looking to buy your dream home or cash-out refi for a new investment, a knowledgeable mortgage broker can guide you through the process.

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Bill Rapp - Commercial & Residential Mortgage Broker

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