1099 · CONTRACTORS · TEXAS
1099 Loans in Texas
Independent contractors, freelancers, and commission-heavy professionals across Texas can pursue mortgage financing using 1099 income—without needing a traditional W-2 salary.
If you receive Form 1099-NEC or 1099-MISC instead of a W-2, many retail loan officers stall on the file. Programs available through Expo Lending are built for 1099 earners: income may be calculated from 1099s, tax returns, bank deposits, or a blend—depending on the program. Guidelines vary and are subject to underwriting.
Aiden Fahimi, Broker | Mortgage Advisor (NMLS #1943973) · Expo Lending LLC · NMLS #2619446
Who 1099 Loans Are For
- Independent contractors and freelancers paid on 1099s
- Gig-economy and project-based professionals with multi-year history
- Commission-heavy roles that issue 1099 income instead of—or in addition to—W-2 wages
- Texas borrowers buying or refinancing a primary home, second home, or investment property when the program allows
- Self-employed clients comparing 1099 documentation with bank statement or P&L options
Expo Lending is Texas-based and serves borrowers statewide. See hundreds of successful closings on our Success Stories page.
How 1099 Income Is Underwritten
Underwriters look for a stable history of 1099 earnings—often two years in the same line of work—and calculate a qualifying monthly income from the forms, supporting tax returns, or alternative documentation the program accepts. Seasonal swings are common; a longer lookback can help smooth peaks and valleys.
1099 vs. bank statement vs. P&L
Pure 1099 documentation works when the forms and history are clean. If write-offs crush taxable income, a bank statement or P&L path may qualify you on cash flow instead. We model the realistic options before you spend money on appraisals.
Typical process
- Discovery — How you get paid, average annual 1099 income, and property goals.
- Income estimate — We outline which documentation path fits.
- Pre-approval — Terms for shopping Texas homes with your Realtor.
- Underwriting & close — Conditions cleared through funding.
Common Requirements
- Documented 1099 history consistent with program seasoning guidelines
- Credit, down payment/equity, and reserves within program ranges (exact figures vary)
- Ability to explain gaps, client concentration, or large year-over-year swings
- Funds to close and reserves from acceptable asset sources
We never invent rates, LTVs, or minimum credit scores on this page. Your quote depends on the full file and the program available at application.
Documents You’ll Likely Need
- 1099 forms for the years the program requires (all pages)
- Tax returns or transcripts when the selected program asks for them
- Bank statements if using an alternative-income overlay
- Government ID and Social Security number
- Purchase contract or mortgage statement; asset statements for down payment and reserves
Benefits for Texas 1099 Earners
- Built for contractors — Financing that expects 1099 income, not corporate payroll.
- Flexible documentation — Switch to bank statement or P&L when taxes understate cash flow.
- Statewide reach — One Texas-based broker for Houston, DFW, Austin, San Antonio, and beyond.
- Investor add-ons — Pair a primary-home 1099 loan with DSCR financing nationwide when you buy rentals.
Seasonality, Multiple Clients & Growing Businesses
Contractor income rarely arrives in perfect monthly slices. Construction, creative, consulting, and sales roles often spike in certain quarters. When we review 1099s, we look at multi-year trends, concentration with a single payer, and whether recent deposits support the average you are asking underwriters to use. If your business is growing quickly, a shorter lookback plus strong recent contracts can help tell the story—still subject to program guidelines.
If you are shifting from W-2 employment into full-time 1099 work, seasoning rules matter. Bring start dates, prior field experience, and pipeline evidence to the first call so we do not waste time on a program that needs longer history.
Pairing a Home Loan With Rentals
Many 1099 earners eventually buy a rental. Keep your primary-home file on a 1099 or bank-statement path, then evaluate DSCR loans(available in all 50 states) for investment properties so personal DTI does not cap your portfolio.
1099 Loan FAQs
Can I qualify with only one year of 1099s?
Many programs prefer two years in the same line of work. Some may consider shorter histories with compensating factors. Expo Lending checks current guidelines for your situation before you apply.
Do I need tax returns if I have 1099s?
Sometimes yes, sometimes alternative documentation can reduce reliance on taxable income. It depends on the program. We confirm the checklist up front.
What if my 1099 income dropped last year?
Underwriters often average or trend income. A clear explanation and strong recent deposits or contracts can help. We will be honest if the drop limits leverage.
Are 1099 loans available across Texas?
Yes. Expo Lending is Texas-based and works 1099 mortgage scenarios statewide—not Houston only.
Can 1099 income be used for an investment property?
Some programs allow it. Many investors also consider DSCR loans (all 50 states) that qualify mainly on rent rather than personal 1099 income.
How fast can contractors get pre-approved?
After a call and a look at 1099s, credit, and assets, many borrowers receive an options summary within a few business days. Full underwriting depends on appraisal and file completeness.
Mon–Fri 9 AM–6 PM Central · Serving all of Texas
Equal Housing Opportunity. Expo Lending LLC, NMLS #2619446. Aiden Fahimi, Broker | Mortgage Advisor, NMLS #1943973. 1000 Main St, Suite 2300 PMB 1161, Houston, TX 77002. Office (877) 732-4464 · Direct/Text (713) 885-3944. Programs, guidelines, and availability vary and are subject to underwriting approval. This is not a commitment to lend. NMLS Consumer Access: nmlsconsumeraccess.org.
