How a 1099 Contractor Bought His First Home With No Traditional Income
- By Jim Blackburn
- on
Client Profile
- Name: Nathan R.
- Age: 33
- Profession: Independent Sales Contractor (1099 income)
- Location: Phoenix, AZ
- Home Type: Single-story ranch
- Purchase Price: $378,000
- Loan Type: 1099-Only Loan
- Down Payment: 10%
- Credit Score: 702
The Challenge
Nathan had a six-figure income but had worked as a 1099 contractor for over four years, meaning he didn’t have W-2s or a salary. Traditional lenders struggled to calculate his income because his tax returns included aggressive write-offs and fluctuating earnings.
He needed a solution tailored to the reality of self-employed and commission-based work.
The Strategy
We qualified Nathan using a 1099-only mortgage program, which allowed us to use:
- His last two years of 1099 forms
- A simple average of gross income, without complex write-offs
- No need for tax returns or P&Ls
- 10% down payment with no monthly PMI
The file was pre-underwritten for a fast close.
The Outcome
- Nathan bought his first home without jumping through hoops
- His loan closed in just 21 days
- Monthly payment fit his income rhythm, even with bonuses and variable months
- He’s now planning to use the same loan strategy to buy a rental property next year
Quote from Nathan:
“I always assumed I couldn’t get a loan because I was a contractor. I had the income—I just needed someone to recognize it. This program was perfect.”
Ready to Take Your First Step?
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