A 1099 employee who want to apply for a loan

As a self employed individual, especially if you are using an accountant, tend to be able to write off many expenses that the regular W2d working person cannot. This results in less useable income when qualifying for credit. One option is to work with your accountant to identify the expenses that you choose not to deduct. As I understand it, there is no law requiring you to deduct any expenses except possibly wages paid out to employees, taxes paid and depreciation. By the way, depreciation is added back in the underwriting process, so there is no adjust it. Hope this helps. ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Certified Mortgage Advisor and Certified by The National Association of Mortgage Professionals as a Certified Veterans Lending Specialist.NEXA is licensed in all states except MA and NY so give us a call. ~ www.LoansA2z.com 480-889-9000 - OR - 480-695-9300.

As a 1099 'employee', the mortgage world treats you as self-employed. As a self-employed person, you have special consideration, and typically need two years of tax returns to determine qualifying income. This qualifying income is essentially the bottom line after write-offs. As you know, this can be a program then showing enough income. Non-QM alternative loans are your next choice. There are programs for 1099 people where we only look at the last two months bank statements, so see if the deposits line up with the 1099 income (divided by 12). A bank statement program on the other hand, there are two different versions. Personal bank statements (no business activity), where we give you credit for 100% of deposits, or business bank statements, where you will be given an expense ratio. The expense ratio depends on your business model, and will vary between as little as 30% of deposits to as much as 70% of deposits. I provide regular home mortgage loans and NON-QM bank statement and 1099 loans in MN, WI, IA, ND, and SD. Find more info at https://joemetzler.com/no-doc-loans/ - Cambria Mortgage, NMLS 274132