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Angel Oak 1099 Income Loan

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Mortgage Financing for 1099 Workers

Use 1099 earnings in lieu of tax returns to qualify for a mortgage loan.

Maximum Loan


Types Of Property

Primary, Second, Investment

Minimum Credit Score




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Best For

Underserved self-employed borrowers who are 1099 workers.

Loan Amount

Up to $3 million.

LTV Ratio

LTV 90% with 700 scores (Maximum LTV 80% with 660 scores).

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.

About Angel Oak

Angel Oak Mortgage Solutions is a full-service lender that has provided residential 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 Mortgage Solutions 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 150 active loan officers. In addition, you can view the company’s interactive map to find a local mortgage professional in your area. Angel Oak has over $19 billion worth of assets under management and has lent out over $25 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 independent contractors and small business owners. 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 than W-2 employees 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. Borrowers can use mortgage brokers to increase their likelihood of getting approved, but a lower taxable income will still result in higher interest rates.

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 demonstrate a steady income. Mortgage lenders that offer 1099 income loans can put borrowers in a better position to obtain mortgages at reasonable rates. 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.

How Does a 1099 Income Loan Compare with a Traditional Mortgage?

Some 1099 income loans have higher credit score requirements than traditional mortgages, but independent contractors can get better financing with these mortgage programs. 1099 income loans let self-employed workers show a higher gross monthly income since it ignores write-offs. Conventional mortgages require tax returns and additional information when assessing your application. Taxable income, in particular, can hurt self-employed workers’ chances of getting mortgage loans and competitive rates.

You can make a lower down payment with traditional mortgages, but you will get stuck with private mortgage insurance if your down payment is less than 20%. Some 1099 income loan providers do not add PMI to your monthly payments even if you do not make a 20% down payment. PMI hurts borrowers who work with FHA lenders the most. If you put at least 10% down, PMI can stay on your FHA loan for 11 years or the loan’s lifetime, depending on which is shorter. If you put less than 10% down, PMI stays on your loan until you pay off the principal. Many borrowers refinance their FHA loans after surpassing 20% equity in their homes to get out of the PMI premiums. 1099 income loans provide fewer headaches for gig workers and business owners who want financing.

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 independent contractors, business owners, and other borrowers who can’t verify earnings exclusively from tax returns. Tax write-offs also won’t hurt these borrowers and make them less likely to get a loan. 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.

Who Qualifies for A 1099 Income Loan?

Self-employed workers with sufficient earnings and a credit score above 660 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 660 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

The Angel Oak 1099 Income Loan Program offers many advantages for people seeking to buy their first or next homes.

  • 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. You won’t have to worry about tax write-offs hurting your chances of qualifying for a loan.
  • High loan amount: If you want to buy a more expensive property, you can borrow up to $3 million. Conventional mortgages have conforming limits that depend on your location. For mortgages in 2023, you can borrow up to $1,089,300 for high-cost areas, $472,030 for low-cost areas, and $726,300 for locations in between. The maximum amount increases if you opt for a duplex, triplex, or quadplex. The FHA changes these limits each year.
  • Home variety: Consumers can use a 1099 income 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, not even your business 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 and gives you more options. You may need to have a buffer to pay off the mortgage for several months.

Requirements to Get A 1099 Income Loan with Angel Oak

Angel Oak LLC offers several financing solutions for independent contractors, business owners, and W-2 employees seeking financing. You will have to fulfill these requirements to get the capital you need and have a smooth mortgage process.

  • A maximum LTV of 90% with a 700 credit score or a maximum LTV of 80% with a 660 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 and inquire about their mortgage loans.

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.
  • 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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