Frequently Asked Questions

How does a 1099 loan work for a self-employed electrician?

A 1099 loan qualifies income using gross 1099 forms from the past 12 to 24 months, averaged to produce monthly qualifying income. No tax returns are required for income qualification. The gross contractor earnings — not the net income after deductions — are used to determine what you qualify for.

Can I use a 1099 loan for my first home purchase?

Yes. 1099 loans are available for primary residence purchases, refinances, and investment properties. First-time homebuyers with 1099 income who have been unable to qualify conventionally regularly close on homes through Non-QM programs.

What if my 1099 income went up significantly in the last year?

Most programs average income over two years. A year-over-year increase is typically a positive signal for underwriters — it suggests growing demand for your skills. Some programs allow more weighting to the most recent 12-month period if income is trending up.

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.

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