1099 HELOC For Independent Contractors
Borrow against your home using your 1099 forms instead of tax returns. Choose a line of credit or a fixed home equity loan built for contractors and 100% commission earners.
Your 1099s document your income
If you are paid on a 1099, at least one program lets those forms carry your income for a home equity line or loan.
- You can use your most recent 1 year or 2 years of IRS Form 1099s to document income.
- Qualifying income is your gross 1099 income minus a 10% expense factor.
- Our 1099 HELOC runs from $50,000 up to $3,000,000.
- Credit scores start at 680, with a debt-to-income ratio up to 50%.
- Primary homes, 1-unit second homes and investment properties can all qualify.
- Income from more than one 1099 payer can count, with proof of current pay from each one.
Built for independent contractors
A flat 10% expense factor
Line of credit or fixed loan
Interest-only payments on the line
Pair 1099s with asset depletion
Standalone loans may need no reserves
How A 1099 HELOC Works
Your 1099 forms take the place of tax returns as proof of income, and the lender trims them for expenses.
A 1099 HELOC lets you document income with your most recent 1 or 2 years of IRS Form 1099s instead of tax returns. It is for earnings from 100% commission or from independent contracts. You cannot own any part of the company that pays you.
Qualifying income is your total gross 1099 income, minus a 10% expense factor, divided by the months covered. For example, $60,000 from two payers becomes $54,000 after expenses, or $4,500 a month. IRS transcripts must confirm the 1099 income, and a current pay stub or bank deposit must show each payer still pays you.
You can take the equity as a line of credit or as a fixed home equity loan. The line of credit is a first lien that can be used to buy a home or to refinance, and on a cash-out refinance at least 75% of the line is drawn at closing. The home equity loan sits in second position, behind the mortgage you already have.
Why choose Saxton for a 1099 HELOC
This page is for independent contractors and 100% commission earners who own a home and get paid on a 1099.
Lines Up To $3,000,000
Our 1099 HELOC runs from $50,000 to $3,000,000. Lines above $2,000,000 need a 720 credit score and 12 months of reserves.
Home Equity Loans To $1,000,000
If you want a fixed loan behind your current mortgage, at least one 1099 option goes from $50,000 to $1,000,000. That program starts at a 700 credit score.
Business-Paid 1099s Can Work
Some 1099 options need the form paid to you personally. At least one program will consider a 1099 paid to your business, using an expense letter from your licensed tax preparer.
One Year Of 1099s Works
At least one program accepts just your most recent year of 1099s. You still need two years of 1099 work history, which a CPA, EA or CTEC can confirm.
Year-To-Date Proof When Needed
In at least one program, year-to-date income proof is required only when your latest 1099 is more than 90 days old at closing.
We Compare Every 1099 Option
We place loans with several investors and check each one’s 1099 rules against your file. You hear which programs fit, and which do not, before you apply.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers to the questions contractors ask most about borrowing against a home with 1099 income.
Yes. At least one HELOC we offer accepts 12 or 24 months of 1099 forms as the income documentation. The 1099 income must be validated with an IRS wage and income transcript.
Gross 1099 income minus a 10% expense factor. The total is divided by the 12 or 24 months covered to get your monthly qualifying income.
In most cases, yes. Even when only 1 year of 1099s is used, at least one program requires two years of 1099 work history, supported by a CPA, EA or CTEC.
680. Lines from $2,000,001 to $3,000,000 need at least a 720 score.
Yes. Investment properties are eligible, along with primary homes and 1-unit second homes.
Yes. At least one HELOC we offer lets you combine 1099 income with asset depletion. At least one home equity loan also lets you add rental income with a lease and 2 months of rent receipts.
No. Our 1099 HELOC is not offered in Texas, and our 1099 home equity loans have their own state limits. Tell us where the home is and we will check.
Saxton Mortgage does. At least one HELOC program we offer lets borrowers paid 100% by commission or as independent contractors qualify with 1 or 2 years of IRS Form 1099.
Find out what you qualify for
Tell us about your 1099 income and your home, and we will check how it fits our programs.
Get Pre-Qualified- Consumer Financial Protection Bureau, home equity loan compared with a HELOC
- Consumer Financial Protection Bureau, mortgages
Loan amounts, rates, terms, and eligibility are subject to credit approval, asset and income verification, appraisal, and program guidelines. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.