The 1099 Loan Program offers several advantages for borrowers, especially those who are self-employed or have income reported on 1099 statements. These benefits are designed to make mortgage financing more accessible for individuals who may not qualify for traditional Agency solutions. Here are the key advantages:  

Income Qualification: Borrowers can qualify for loans using their 1099 statements and year-to-date (YTD) bank statements as an alternative to providing traditional tax returns. This is particularly beneficial for self-employed individuals, including contractors, freelancers, and gig-economy workers. 

Expanded Borrower Eligibility: The 1099 Loan Program widens the eligibility criteria, allowing self-employed borrowers who may not meet the requirements of Agency (conventional) loans to access mortgage financing.  

Flexibility for Self-Employed Individuals: Self-employed individuals often face challenges when applying for mortgages due to irregular income or non-traditional employment structures. The 1099 Loan Program acknowledges these unique financial situations.  

Access to Homeownership: By offering an alternative financing option, the 1099 Loan Program facilitates homeownership for self-employed borrowers who may have otherwise faced difficulties in obtaining a mortgage.