Like many MBANC’s clients, Sarie is a savvy, self-employed, non-traditional income earner. Sarie wanted to leverage the equity in her property in New Jersey and do a cash out refinance so she could pay off debts and make investments to create passive income.
Like often the case with self-employed individuals, Sarie’s employment history was not with the same employer and, hence, seen as inconsistent by most traditional lenders. To complicate matters further, Sarie also had a tax situation which required a lending exception.
She got nowhere with the traditional lenders due to her unique income structure and circumstances. When Sarie contacted MBANC and spoke to one of our expert loan officers, the difference in approach—compared to traditional lenders—was immediately obvious.
1099 Mortgage Process With mbanc Experts
MBANC is a consumer direct mortgage lender specializing in lending to self-employed individuals. We instantly understood Sarie’s situation and were able to support her in swiftly closing her deal. The 1099 mortgage was the best product for Sarie—we were able to use 90% of her 1099 income to qualify her for the loan.
Because we are a direct non-QM lender and the bank, we handle all processing and underwriting in-house. This means we can offer more flexibility, for example, we can make exceptions as and when needed. Actual people underwriters, rather than an algorithm, process your mortgage application. In Sarie’s case, this meant that we were able to process her application and make necessary exceptions quickly, enabling her to close fast.
At MBANC, we understand the nuances of being self-employed. Getting a mortgage with MBANC is different compared to other lenders. At the outset, you are working with knowledgeable, understanding, expert loan officers to find the best solutions for your mortgage needs.
1099 Mortgage Program Benefits
MBANC’s commitment to understanding the financial nuances of independent contractors is evident in their consideration of income sources with a two-year history. This inclusive approach ensures that most sources of income, even those with fluctuations, are taken into account. By recognizing your sustained earning patterns over two years, MBANC offers a mortgage solution that aligns with your long-term financial stability.
Benefits in Summary:
- Expense Ratio Optimization: MBANC’s 10% expense ratio ensures that you are qualified on the remaining 90% of your income, maximizing your borrowing capacity.
- Holistic Income Assessment: The aggregation of multiple income sources provides a comprehensive view of your financial capacity, acknowledging the diversity of income streams common among private contractors.
- Two-Year Income History Consideration: MBANC’s commitment to considering income sources with a two-year history demonstrates a nuanced understanding of the financial dynamics of independent contractors, providing stability and reliability in the mortgage qualification process.
How Does the 1099 Mortgage Work?
Mortgage terms vary from lender to lender. You need to read and compare them carefully to make sure you choose a mortgage product that meets your needs.
As an example, the key terms of the 1099 mortgage with MBANC are:
- Loan amounts up to $4 million, cash out refinance up to $3 million.
- Qualify using year to date, or 12-24 months of 1099 income
- No Tax Returns, W-2’s, or Pay-stubs required to qualify
- I0-year interest only option on 30- and 40-year term mortgages.
- Occupancy types: Primary residence, second home, investment property.
- Property types: Single family residence, condo, condo-tel, 1-4 unit, 5-8 unit.
We let you know upfront exactly what paperwork we need so you don’t waste your precious time. An average approval with us takes just 17 days. We are completely transparent regarding the terms of your loan. Excellent client reviews on Google are a testament to our customer service.
If you are self-employed and are wondering whether you can qualify for a mortgage without tax returns, get in touch with us today and our experienced mortgage officers will guide you through the options available to you.
What Are 1099 Mortgages?
When using a 1099, we will review your total income and take away an expense ratio of 10% (unless otherwise provided) and qualify you on the remaining 90% of income. If you have several forms of income, we will add all of the sources together to determine your average monthly income. We can consider most sources of income that have a two-year history!
What documents are needed for a 1099 Jumbo Mortgage
Self-employed borrowers will need to submit all required documentation to qualify, such as:
- Proof of Income
- 1099 Income
- 2 Years of Self-Employed Work History
- If you co-own a business, you’ll need to document how much of the business you own.
- Borrower Financial Details
- Property Details
What are the Rates for Self-Employed Borrowers?
Your specific mortgage rate is influenced by a range of elements: income evaluation method, down payment/equity status, credit score, loan term, income, and debt. Reach out to us for a complimentary quote on our competitive rates for self-employed mortgages and discover your potential qualification amount