1099 Income Loans

1099 loans in Florida qualify you from the 1099 forms your clients issue, which usually counts far more of your income than a bank statement program would.

Key features of 1099 loans in Florida

• One or two years of 1099 forms
• No tax returns on most programs
• Income calculated from the 1099 totals, averaged across the period
• Built for independent contractors, consultants and freelancers
• Loan amounts to $2 million
• Primary residence and investment property

Why this usually beats a bank statement loan

If you receive 1099s, compare this route against a bank statement loan before you choose, because the two treat your income very differently.

A business bank statement program applies an expense factor, commonly 50%, on the assumption that half your deposits went to running the business. A 1099 program starts from the gross figure on the forms and applies a much smaller factor, often around 10%, since the payer already reported that income to the IRS and there is far less guesswork about where it came from.

The gap is large. On $200,000 of gross 1099 income, a 10% factor leaves $180,000 in qualifying income against roughly $100,000 under a 50% business statement factor. Therefore the same borrower can support a substantially bigger loan simply by presenting the right document. Ask both ways and take whichever qualifies more.

What the underwriter will still check

• That the 1099 income is continuing, usually through a year-to-date earnings statement or recent invoices
• That you have worked in the same field for at least two years, even if not with the same payer
• Declining income, which draws questions and may force the lower of the two years
• Credit and reserves, exactly as on any other loan

Who this suits

• Independent contractors paid on a 1099
• Gig economy workers in rideshare, delivery and freelance platforms
• Consultants and freelance professionals
• Real estate agents, who are almost always paid on 1099

Florida-specific notes

• Florida real estate agents form the largest single group using these loans, since commission income arrives entirely on a 1099
• Orlando and Miami tourism and hospitality contractors use them heavily
• Because Florida levies no state income tax, your 1099 totals reconcile against federal filings alone
• If your income is mixed, part W-2 and part 1099, ask whether a standard conventional loan works, since it will price better

1099 income programs sit outside agency guidelines, so expense factors and documentation requirements vary by lender and change often. The CFPB owning a home guide explains how to compare offers. Confirm current terms before you rely on any figure here.