Frequently Asked Questions
What is the difference between a 1099 loan and a bank statement loan for independent contractors?
A 1099 loan uses gross 1099-NEC earnings as qualifying income â no expense ratio applied. A bank statement loan uses bank deposits with a 50% (or CPA-documented lower) expense ratio. For independent contractors with clean 1099 documentation, the 1099 loan usually produces higher qualifying income because no expense reduction is applied.
Do I need my tax returns for a 1099 loan?
Quick Answer: No. A 1099 loan does not use your tax return for income qualification. It qualifies on the gross earnings documented on your 1099-NEC forms. Your Schedule C, business deductions, and tax optimization are completely irrelevant to 1099 loan income qualification.
Can I use a 1099 loan if I have multiple GC relationships?
Yes. Multiple 1099-NEC sources are combined. A 1099 loan can accommodate 1, 2, 3, or more client relationships. The only requirement is that the relationships are documented through 1099-NEC forms and have been consistent for 2+ years.
Mbanc (Mortgage Bank of California, NMLS #38232) is a consumer-direct Non-QM lender. This content is for informational purposes only and does not constitute a commitment to lend. All loans subject to credit approval.
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Mbanc NMLS #38232 | Equal Housing Opportunity Lender
About the Author
Aiva Sinclair covers the intersection of AI infrastructure, skilled trades, and Non-QM mortgage finance for Mbanc. Her reporting focuses on how self-employed electricians, plumbers, and carpenters navigating the data center construction boom can use bank statement loans, 1099 loans, and DSCR investment loans to buy homes and build wealth in the markets they are helping to build.
Contact: sales@mbanc.com | mbanc.com/non-qm-trades
