How 1099 Income Qualifies for a Mortgage: A Clear Guide for Travel Nurses & Gig Workers

If you’re paid on a 1099, qualifying for a mortgage shouldn’t feel mysterious. The key is understanding how lenders read your income and which documents verify it.

This guide covers two common 1099 borrowers—travel nurses/healthcare contractors and gig/rideshare & delivery workers—and shows the math lenders use so you can plan a purchase or refinance with confidence.

Who This Applies To

You’re a good fit for these guidelines if:

• You’re paid directly via 1099 by your employer/agency, and

• You do not own the company that issues your 1099.

Not a fit: Borrowers who own the issuing entity listed on the 1099 (different programs apply).

The 10% Expense Factor (Plain-English)

Most lenders apply an automatic 10% expense to 1099 earnings, then use 90% of gross to determine your qualifying income. After that, they average it over your year‑to‑date timeframe.

Note: Some investors may annualize or average differently. We pre‑qualify conservatively to avoid surprises.

Documents You’ll Need (If Your 1099 Is Over 90 Days Old)

If your most recent 1099 is more than 90 days from the Note Date (closing), bring one of the following for each 1099 employer:

• Year‑to‑Date bank statement(s) showing deposits from your employer/platform

• Employer/Platform YTD earnings printout

• VOE (Verification of Employment) completed by the employer with YTD income

Pro tip: If you work with multiple 1099 payors, gather YTD proof for each—it prevents last‑minute delays.

Purchase vs. Refinance: How We Help

For Purchases

• We start with a 10‑minute 1099 checkup to map usable income before you shop.

• We coordinate YTD documentation timing so your 1099 isn’t “stale” by the time you close.

• We explain how assignment changes or variable hours affect your pre‑approval.

For Refinances

• We focus on cash‑flow predictability between contracts or during slower months.

• We look at payment optimization and timing around YTD verification.

• If you have multiple 1099 sources, we combine them carefully with the right YTD proof.

Common Pitfalls (and How We Avoid Them)

• Ownership confusion: If you own the entity that issues your 1099, these guidelines typically don’t apply. We’ll advise on alternatives.

• Stale docs: 1099 older than 90 days without YTD proof stalls files. We calendar dates and collect one YTD item upfront.

• Multiple payors: Each 1099 source needs YTD verification. We provide a checklist for every employer/platform.

Quick FAQ

Do I need tax returns?These programs can qualify using 1099 documentation plus YTD verification. Requirements can vary by lender/investor—let’s review your file.

Can I use multiple 1099s?Yes, with YTD proof for each employer.

What if my income is seasonal or variable?We’ll average YTD earnings conservatively and discuss how different averaging methods may impact approval.

Next Step: Get Your Numbers Mapped

Download the 1099 Mortgage Checklist, or book a 10‑minute 1099 checkup. We’ll show you exactly what we can use and why—before you shop or refi.