1099 loans are typically for independent contractors: Individuals who work independently and are not classified as traditional employees, such as freelancers, consultants, or gig workersDocumentation: To support their eligibility for 1099 loans, borrowers are required to provide comprehensive documentation that demonstrates their 1099 income. This documentation includes recent tax returns, 1099 forms received from clients or employers, and bank statements that reflect deposits related to their self-employment income.
✔ Higher Interest Rates:
1099 loans may come with slightly higher interest rates compared to traditional mortgages, reflecting the increased risk associated with self-employment income.