1099 Income and Buying a Home: You May Have More Options Than You Think | El Paso & Las Cruces

Are you self-employed or paid on a 1099 and wondering if your tax returns will make it difficult to qualify for a mortgage? There may be another option. In this video, I explain how certain Non-QM 1099 mortgage programs can evaluate income differently than a traditional mortgage. With one program I work with, eligible 1099 income may be calculated using a standard expense factor rather than relying only on the taxable net income shown on your tax returns. For example, $100,000 in eligible 1099 income with a 10% expense factor could potentially result in $90,000 of qualifying annual income, or about $7,500 per month, before the rest of the loan analysis is completed. I also explain: • Why tax deductions can sometimes reduce qualifying income on a traditional mortgage • How 1099 income may be calculated under certain Non-QM programs • Why one or two years of 1099 history may matter • Why a traditional Conventional, FHA or VA loan should still be evaluated first • How credit, down payment, reserves, debts and the overall loan scenario affect qualification If you’re a contractor, consultant, freelancer, healthcare professional or another borrower receiving 1099 income, don’t automatically assume your tax returns mean you cannot qualify. There may be more than one way to evaluate your income. If you’re buying a home in El Paso, Fort Bliss, Las Cruces, Santa Teresa, Sunland Park or elsewhere in Texas or New Mexico, reach out and let’s review your options. And before you make an offer, send me the property address so I can run the actual financing and estimated payment for you. Chapters: 00:00 1099 Income & Buying a Home 00:44 Why Tax Returns Can Hurt Mortgage Qualification 01:23 Using 90% of 1099 Income to Qualify 02:35 Who May Qualify for a 1099 Mortgage Program? 03:16 Traditional Mortgage vs. Non-QM Options ReAnn Gonzalez Mortgage Loan Originator | Branch Manager Edge Home Finance NMLS #219070 | Company NMLS #891464 Licensed in Texas and New Mexico All loans are subject to underwriting approval. Program guidelines, rates, pricing and eligibility requirements are subject to change.