Angel Oak 1099 Income Loan

Mortgage Financing for 1099 Workers
Use 1099 earnings in lieu of tax returns to qualify for a mortgage loan.
Maximum Loan
Primary, Second, Investment
Types Of Property
Minimum Credit Score


Best For
Underserved self-employed borrowers who are 1099 workers.
Loan Amount
Up to $3 million.
LTV Ratio
LTV 90% with 700 score (Maximum LTV 80% with 640 score).
Policy on Tax Returns
No tax returns are required.
Required Financial Documents
Most recent one or two years 1099 plus year to date earning statement allowed.
Verification of Earnings
Year to date earnings are verified from earning statements, pay stubs, or business bank statements.


Self-employed earners face an uphill battle with getting a mortgage. These underserved borrowers can’t qualify for a conventional mortgage with W-9s. Letting these workers use 1099 forms instead of W-9s gives them a better chance of getting approved. Angel Oak offers a 1099 income loan for gig workers and business owners. This loan lets borrowers receive loans by showing one or two years of 1099 forms plus a year-to-date earnings statement.

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Angel Oak 1099 Income Loan

Mortgage Financing for 1099 Workers

About Angel Oak

Angel Oak Home Loans is a full-service lender that has provided mortgage loan products for investors and home buyers since 2008. Their innovative financing products provide consumers with more opportunities to qualify for a loan. Some consumers get funding from Angel Oak home loans after getting declined by Fannie Mae and Freddie Mac. Conventional loans have more challenging requirements than Angel Oak’s loans.

Borrowers can choose from Angel Oak’s traditional and non-traditional (non-QM) loans. The lender is licensed in 39 states and employs over 200 loan officers. The company employs over 900 people in total. You can view the company’s interactive map to find a local mortgage professional in your area. Angel Oak has over $26 billion worth of assets under management and has lent out over $21 billion in mortgage loans. The company has securitized $10.8 billion and was recently named one of the fastest-growing private companies in Atlanta. 

What is A 1099 Income Loan?

A 1099 income loan helps self-employed workers qualify for mortgages. Conventional lenders don’t do a good enough job serving this group of workers. Some applicants make enough money to keep up with monthly payments, but not all 1099 income shows up as taxable income. Self-employed workers can use more parts of the tax code to reduce their taxable income. While this strategy saves money, it comes at an unfair cost—the discrepancy between earned income and taxable income results in some self-employed workers getting undeserved loan rejections. 

1099 income loans solve this problem by using 1099 forms as qualifiers instead of tax returns. This approach helps borrowers show more of their earnings and can put them in a better position to obtain a mortgage. You can also get lower interest rates, substantially reducing the amount you will pay in the long run. Higher earnings reduce the mortgage lender’s risk, making you a more desirable applicant.

Can You Get A Mortgage With a 1099 Income Loan?

Yes, you can get a mortgage with a 1099 income loan. The 1099 income loan provides a better path for borrowers who can’t verify earnings exclusively from tax returns. You will have to provide 1-2 years of 1099 forms and statements (i.e., year-to-date bank statements) to receive a loan. 1099s must be from a single employer, and some lenders require a letter from the employer identifying the date they hired you.

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Angel Oak 1099 Income Loan

Mortgage Financing for 1099 Workers

Who Qualifies For A 1099 Income Loan?

Self-employed workers with sufficient earnings and a credit score above 600 can qualify for an Angel Oak 1099 income loan. Mortgage lenders will review year-to-date earnings via earning statements, pay stubs, or bank statements. Borrowers with a 700 credit score must make at least a 10% down payment. A credit score of 640 requires a minimum down payment of 20%. Angel Oak will require two years of seasoning if you have had a foreclosure, short sale, bankruptcy, or deed-in-lieu.  

The Benefits of an Angel Oak 1099 Income Loan

  • More friendly to self-employed individuals: Showing more of your earnings can help you qualify for a loan or secure a lower interest rate. The 1099 income loan doesn’t limit you to tax returns.
  • High loan amount:  If you want to buy a more expensive property, you can borrow up to $3 million.
  • Home variety: Consumers can use this loan to finance owner-occupied homes, second homes or non-owner occupied homes. You can also obtain financing for a non-warrantable condo.
  • No tax returns required: Not only will a lender look at your 1099 forms, but they won’t even ask for your tax returns. That’s less paperwork for you to gather. This approach can protect you from higher interest rates.
  • LTV flexibility depending on your credit score: Borrowers with credit scores above 700 can obtain a loan with only 10% down. The low down payment helps you enter real estate sooner. You might have a buffer to pay off the mortgage for several months.

Requirements to Get A 1099 Income Loan with Angel Oak

  • A maximum LTV of 90% with a 700 credit score or a maximum LTV of 80% with a 640 credit score
  • 1-2 years of 1099 forms or a year-to-date earnings statement
  • The borrower must purchase an owner-occupied home, second home, or non-owner-occupied home.
  • The borrower must be self-employed and working for the same employer for at least two years

How to Get a 1099 Income Loan With Angel Oak

Visit Angel Oak’s 1099 income loan page to learn more information about receiving a loan. Just fill in the needed details in the contact form and wait for a response. An experienced Account Executive in your area will reach out within the next business day. You can browse through Angel Oak’s financial products and loan amounts on their website.

Other Mortgage Loans From Angel Oak

  • Bank Statement Loan: Angel Oak will require bank statements instead of tax returns during the application process. Many self-employed borrowers use these loans or 1099 income loans to qualify for a mortgage.
  • Investor Cash Flow Loan: Angel Oak will assess a property’s cash flow potential instead of reviewing your monthly income. Investors can borrow up to $1.5 million for a 1-4 unit property.
  • Jumbo Loan: These loans provide financing for high-end. You can borrow up to $3.5 million and get an interest-only loan to keep payments low in the beginning.
  • Asset Qualifier Loan: Stocks, bank accounts, retirement accounts, and other securities determine whether you qualify for a loan. Angel Oak will not review income or tax returns.
  • ITIN Mortgage Loan: An attractive financing option for people who don’t have a social security number. You can have a 50% debt-to-income ratio and still qualify for this loan.
  • Foreign National Program: Borrowers outside of the U.S. can use this loan to obtain funds to purchase a property. Angel Oak will review a property’s cash flow instead of the borrower’s income.
  • Traditional Home Loans: Want a conventional, FHA, USDA, or VA home loan? Angel Oak provides traditional financing as well.
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Angel Oak 1099 Income Loan

Mortgage Financing for 1099 Workers

This Company Also Offers

Angel Oak asset qualifier loan can help you purchase or refinance your home using your liquid assets. Here’s what you need to apply.
Are you looking to finance a home too expensive for a conventional loan? An Angel Oak Jumbo Loan can provide financing for up to $3.5 million.
An Angel Oak investor cash flow loan can provide funds to expand your real estate investments. Learn what it takes to qualify.
Are you a self-employed worker struggling to get a loan? An Angel Oak bank statement loan can help you obtain financing for a home.
Learn more about the foreign national program by Angel Oak, a loan option for non-U.S. residents looking to purchase or refinance a home.
If you don't have a Social Security Number, you could still qualify for a mortgage. Here’s what you need to know about ITIN mortgage loans.

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