If you are a 1099 employee or contractor, you may find it difficult to get a mortgage loan. Most banks and lenders require W-2 proof in order to approve a mortgage application. However, Lending Warehouse has options to help get you a mortgage loan without W-2 proof.

In this blog post, we will discuss 1099 mortgages and how to get a mortgage loan without W-2 proof. We will also provide tips on how to improve your chances of getting approved for a mortgage!


Yes, that’s the quick answer. However, the answer is more nuanced than a simple yes or no.

Prequalification is the first step to securing a mortgage for 1099 workers. Simple as calling your bank or filling out an online form with your Form 1099 income report, debt, and assets information. With this information, you should be able to get an idea of how much money you’ll need to borrow in order to buy a house.

Prequalification does not guarantee that you will get a loan. You can only get an idea of how much money you can borrow from this. The pre-qualification letter from a lender may be requested by a real estate agent to identify properties that meet your budget. As soon as you’ve located the house of your dreams, you may start gathering your belongings in preparation for a mortgage application.


There are a few types of stated income mortgage loans for different types of borrowers.

  • The most common type is the full doc loan, which requires tax returns and W2s as well as bank statements and asset information.
  • Low doc loan which only requires tax returns and W2s. This type of loan is perfect for borrowers who don’t have much documentation or want to keep their financial information private.
  • No doc loan which doesn’t require any documentation at all. This type of loan is perfect for borrowers who don’t have any documentation


  • Here is a list of the papers that are often necessary for 1099 workers to secure a mortgage:
  • Immigration documentation – As a foreign national working in the United States, you must show that you have a valid visa.
  • Tax returns – Copies of sole proprietor 1099 tax returns. It helps to demonstrate your annual income. Tax disclosures are also necessary.
  • Other proof of 1099 income – Proof of income from bank statements, checks, or other forms of payments is required for people who don’t earn enough to justify a Form 1099-MISC (for each company you work for).
  • Business financial statements – Lenders are interested in learning about the current health of your business in order to make an accurate assessment of your ability to repay your debt.
  • Business license – Some professions need particular licenses for their practitioners. If your industry requires a license of any kind, you should be prepared to produce your own.
  • W-2 forms and pay stubs – Provide W-2 forms and pay stubs if you have these types of additional income streams.
  • Bank account statements – Bank statements to verify your income. A down payment might also demonstrate to lenders that you’ve saved enough money for the purchase of a home.
  • Credit card and loan statements – Lenders may want to know about your credit history when you apply for a loan.
  • Letters of support – Some people may get a financial gift from a family member or friend to help them buy a house.


Qualifying for a mortgage as a self-employed person can be difficult, but it’s not impossible. By following these 6 tips, you can put yourself in a better position to qualify:

  1. Watch your credit score – You need to monitor your credit score at all times. If you don’t know what you’re dealing with, you can’t manage or enhance it. Maintain a timely payment history and adhere to other credit-building strategies.
  2. Review last two tax returns – These two documents may be useful in figuring out your typical monthly revenue. Divide the total revenue by 24 (the amount of months) to calculate the estimated monthly income. This will also help you keep your expectations in line with what you can afford.
  3. Lower debt-to-income ratio – If you have a debt-to-income ratio close to or higher than 50%, lenders may reject your mortgage application.
  4. Additional income factors – If there are offsetting variables that raise the possibility that you will be able to repay the loan, certain lenders may accept a lower-than-average application for a mortgage.
  5. Reduce your taxable deductions – You may be qualified for a mortgage if your taxable income is higher than the amount lenders need.
  6. Unconventional mortgage loans – These programs are created specifically for 1099 contractors and employees.


Here are 3 advantages of stated income mortgage loans:

  1. Easier to qualify for than traditional loans. This is because you don’t need to provide as much documentation. they’re perfect for borrowers who don’t have a lot of documentation or who want to keep their financial information private.
  2. Keep financial information private – Since you don’t need to provide as much documentation, stated income loans are perfect for borrowers who want to keep their financial information private.
  3. Flexible underwriting guidelines – Stated income loans have more flexible underwriting guidelines than traditional loans, so it’s easier to qualify.


There are 3 disadvantages of 1099 mortgages.

  1. You may end up paying a higher interest rate. This is because stated income loans are seen as riskier by lenders.
  2. You may have to pay for private mortgage insurance. This is because you’re seen as a higher risk borrower.
  3. You may have a shorter loan term. This is because lenders want to minimize their risk.


  • If you’re a self-employed person, you can still get an unconventional mortgage loan.
  • You’ll just need to follow these tips and be prepared to provide documentation of your income.
  • Stated income loans are an option for those who don’t have a lot of documentation or who want to keep their financial information private.
  • Keep in mind that you may end up paying a higher interest rate and you may have to get private mortgage insurance.
  • You may also have a shorter loan term.

By following these tips, you can put yourself in a good position to qualify for a stated income mortgage loan. Call Lending Warehouse to learn more about options for 1099 contracted employees.