Overview
A “1099 mortgage loan program” typically refers to a mortgage loan program designed for borrowers who are self-employed and receive income reported on IRS Form 1099 rather than W-2 forms. This type of loan program recognizes the unique financial circumstances of self-employed individuals, who may have variable income streams and different documentation requirements compared to traditional employees – No Tax returns are required.
Down Payment
1099 mortgage loans require a down payment, although the
specific amount can vary depending on factors such as the borrower's credit
profile and the lender's requirements. The minimum down payment required is
10%.
Income Verification
Lenders assess the borrower's income based on their past
year or 2 years 1099 form – no tax returns or transcripts needed.
Credit Score
While credit requirements can vary among lenders, borrowers
typically need to have a good credit score to qualify for a 1099 mortgage loan.
The minimum credit score required is 660.
Mortgage Insurance
1099 loans do not have mortgage insurance regardless of the amount of down payment.
Loan Limits
Loan limits are set by the specific lender.
