Lite Doc 1099 Only Programs – One-Year Employment History
Borrower must have at least one year self-employment within the same industry 2 years and a 2-year history as 1099. This works best for borrowers for any Independent Contractor Sole Proprietor like a realtor who has been employed with their broker (or multiple brokers) for > 12 months and < 2 years, for example:
1099 Only Mortgage Program for Sole Proprietor
Any industry is fine i.e., insurance sales, Real Estate Agents, Consultants, trades such as Construction. If the borrower has been employed with the same company for between one and two years, the borrower can provide the 2024 1099 and YTD earnings statement (paycheck stub) for 2023; tax returns and Form 4506-C (previously Form 4506-T) not required.
How Non-QM Lenders Calculate Self-Employed 1099 Income?
Non-QM underwriting typically involves averaging the borrower’s 2024 1099 income with year-to-date 2025 income. The total income earned in 2023 is annualized over 12 months, regardless of when the income began. If the borrower lacks current financial documentation—such as a YTD profit and loss statement—bank statements may serve as an alternative for income verification. Toward year-end, it is generally more efficient to underwrite as a bank statement program rather than rely on partial 1099 documentation, which may lack the necessary support for stable income calculations.
Underwriter Guideline Highlights
Multiple 1099’s each borrower OK
One-Year History Employment Verification – Reduced Doc
One-Year Income (Alt Doc) Documentation – Lite Doc
Current year business income revenue may need to be verified with 1-3 months bank statements or borrower prepared (and unaudited) P&L
Loan Scenario Form – Credit Check Not Required
Available in the Following States:
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Kentucky, Louisiana, Maryland, Massachusetts, Mississippi, Missouri, Nevada, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, and Wisconsin.