Blog Layout

Using 90% of 1099 income to qualify for a mortgage

DDA Mortgage • May 02, 2022

If you're self-employed, you may be wondering how to use your 1099 income to qualify for a mortgage. We're here to give you a clear picture of what it means to have a 1099 income on your taxes. The best part, you can qualify for a loan using 90% of your 1099 income!


1. No tax returns and made simple


If you are self-employed, there are no tax returns required. Lenders analyze your bank statements to determine your income and qualify you for a bank report Non-QM loan. Generally, borrowers need to provide 12 months of bank statements and have a 2-years of self-employment. This loan is usually the right solution for the self-employed, business owners, entrepreneurs, consultants, realtors, and real estate investors.


2. Up to 80% cash-out refinance


If you already own a home and need cash to pay down other debt, we can help with that too! If you have equity in your home, we can use it as part of the loan amount and take cash out of your home. This is your money, and you can use it however you wish.


3. Up to 90% Loan To Value on 1,000,000


If you don't have enough equity in your existing home but still want or need more space or amenities than what's currently available in your current neighborhood (such as a larger garage), then a purchase transaction may be the right option for


4. 30-year fixed rate or interest-only terms


You can still choose your terms depending on what is best for you and what programs lenders offer. 30-year and 15-year fix rates mortgages are available. You can also qualify for interest-only terms, adjustable-rate terms, and hybrids like a 7/1 where your rate is fixed for the first 7 years, and then it adjusts 1 time every year until you sell the house or refinance.


5. What it takes to qualify


You need a good credit score and be self-employed for 2-years. Some lenders will qualify you with only 1 year of self-employment. You also need to start an application with a qualified mortgage advisor.


To learn more about using 90% of 1099 income to qualify for a mortgage and see if you qualify, complete the form below.

Start Your Residential Application v2




Start Your Loan with DDA today
Your local Mortgage Broker

Mortgage Broker Largo
See our Reviews

Looking for more details? Listen to our extended podcast! 

Check out our other helpful videos to learn more about credit and residential mortgages.

By Didier Malagies 04 Nov, 2024
 ender's 1% Down Payment program is designed to make homeownership more accessible for eligible first-time buyers by lowering the upfront costs typically required for a mortgage. Here's a breakdown of how the program generally works: How It Works 1% Down from the Borrower: The borrower contributes just 1% of the home purchase price as a down payment. 2% Contribution from Lender: Lender covers an additional 2% of the down payment, allowing the borrower to start with a total of 3% equity in the home. Eligibility: Borrowers must meet certain income and credit score requirements. The program often targets lower-income buyers or those who qualify for special financial assistance. Key Features and Benefits Low Entry Barrier: The reduced down payment can make homeownership achievable sooner for first-time buyers or those with limited savings. Conventional Loan: The loan is structured as a conventional mortgage, which may help borrowers avoid some of the restrictions associated with government-backed loans like FHA loans. Potential Mortgage Insurance: Depending on the loan details, borrowers may need to pay private mortgage insurance (PMI) until they reach 20% equity. Other Considerations Interest Rates: Rates and terms are subject to typical mortgage rate changes, so it's advisable to check the current rate before applying. Credit Requirements: There may be a minimum credit score requirement, though this is typically more flexible than for standard conventional loans. The 1% Down program can be an excellent option for buyers looking to make homeownership more affordable. tune in and learn at https://www.ddamortgage.com/blog didier malagies nmls#212566 dda mortgage nmls#324329
By Didier Malagies 29 Oct, 2024
Roughly 16% of women workers are “very confident” that their retirement prospects will lead them to have a satisfactory lifestyle, illustrating that women remain at greater risk than men for achieving a sustainable retirement. This is according to a new survey-based report from the Transamerica Center for Retirement Studies. “Women have made great strides in educational attainment and access to career opportunities in recent decades,” Catherine Collinson, president and CEO of the Transamerica Institute, said in a statement. “Yet, despite this progress, women are still at greater risk than men of not achieving a financially secure retirement.” Longstanding challenges including a pay gap between men and women, as well as more time needed away from the workforce to adequately pa
By Didier Malagies 28 Oct, 2024
 The FHA 203(h) program is a Federal Housing Administration (FHA) loan specifically designed to help people affected by natural disasters, like hurricanes, purchase or rebuild a home. It provides an accessible way for victims of federally declared disaster areas to find stable housing quickly by offering favorable terms compared to traditional mortgages. Here’s a breakdown of how it works and its benefits: Key Features of the FHA 203(h) Loan Eligibility Requirements: You must be a homeowner or renter whose home was destroyed or severely damaged in a disaster within a federally declared disaster area. Typically, you need to apply within one year of the disaster declaration. Loan Coverage: You can use the FHA 203(h) to purchase a new primary residence or rebuild an existing one if your previous home was destroyed. It’s available for both single-family homes and approved condominiums. Benefits of the FHA 203(h) Program: No Down Payment Required: Unlike traditional FHA loans that require a 3.5% down payment, the 203(h) program allows qualified borrowers to finance 100% of the home’s cost, which can be helpful during times of financial stress. Lower Credit Score Flexibility: FHA loans generally have flexible credit requirements, and the 203(h) is no exception. The credit standards might be more accommodating due to the circumstances, though some lenders may impose their own minimum scores. Potential Waiver of Mortgage Insurance Premiums (MIP): Some lenders may waive upfront MIP payments under this program. However, it’s common for standard FHA loans to have monthly premiums. Refinance Option: If your damaged home needs repairs and you want to keep it, you can combine the FHA 203(h) with a 203(k) loan to finance both the purchase and repair costs. Loan Limits: The FHA 203(h) is subject to standard FHA loan limits, which vary by county and property type. Documentation: Lenders will require proof that you lived in the disaster area, typically through utility bills, lease agreements, or similar documents. You’ll also need proof of disaster loss, such as insurance claims, FEMA assistance documentation, or other relevant records. Steps to Apply Contact Lenders Familiar with FHA 203(h) Loans: Not all lenders offer this program, so find one experienced with disaster recovery loans. Gather Required Documentation: Make sure to have your identification, proof of residency in the disaster area, proof of loss, and any FEMA assistance documents. Consider FHA 203(k) Combination: If you want to buy a damaged home and repair it, discuss combining with an FHA 203(k) for renovation financing. Potential Drawbacks While the program is beneficial, keep in mind that: The loan amount is capped by FHA limits, which may not be enough in higher-cost areas. Mortgage insurance premiums can increase monthly payments, even if the upfront premium is waived. The FHA 203(h) can be a strong tool for those affected by natural disasters, providing quick access to housing and flexible financing terms at a time when resources might be limited. tune in and learn at https://www.ddamortgage.com/blog didier malagies nmls#212566 dda mortgage nmls#324329
Show More
Share by: