Qualify from your 1099s or a CPA-prepared profit and loss statement, instead of the net figure at the bottom of a tax return.
An independent contractor bills $220,000 over the year. Every 1099 says so. Then mileage, home office, equipment, phone, insurance and the rest come off, and the number an underwriter reads on Schedule C is $95,000.
Both numbers are honest. The deductions are legitimate and taking them is good tax practice. But a conventional lender qualifies you on the second figure, which is how someone comfortably servicing a mortgage gets told they cannot afford one.
These programs work from a different document. A 1099-only loan qualifies from the 1099s themselves — the gross that was actually paid to you. A P&L-only loan works from a profit and loss statement prepared by a licensed accountant, which suits business owners whose income never appears on a 1099 at all.
The same contractor looks like a different borrower depending on which document does the talking. This is the choice worth understanding before you apply anywhere.
| Program | What it reads | How income is derived |
|---|---|---|
| Conventional | Tax returns | Net profit after Schedule C deductions |
| 1099 only | Your 1099 forms | Gross 1099 income, less an expense factor |
| P&L only | CPA-prepared P&L | Net income shown on the statement |
| Bank statement | 12–24 months of deposits | Qualifying deposits, less an expense factor |
Documentation periods and expense factors vary by investor. Our bank statement page shows how the deposit-based calculation works in detail.
1099 only suits people whose income arrives cleanly on forms: real estate agents, insurance producers, contract nurses, consultants, gig and platform workers. If your 1099s tell the whole story, this is the shortest route, and the expense factor applied is generally lighter than on a bank statement program because a 1099 already represents money paid to you rather than gross business revenue.
P&L only suits business owners who do not receive 1099s — a restaurant, a salon, a construction firm, an e-commerce brand. Income is documented by an accountant rather than inferred from deposits, which tends to produce a cleaner result when a business has heavy but seasonal cash flow.
The right answer is whichever produces the strongest qualifying income for your situation, and it is not always obvious in advance. It is worth running your file both ways before choosing.
These are Non-QM programs, which means they price above conventional. You are paying for underwriting flexibility, and the premium is real but usually modest against the alternative of not qualifying at all.
Expect to document a self-employment history — two years is standard, though some programs accept twelve months — and to show that the business is currently active. A P&L file will generally need the accountant's details and may need bank statements alongside as corroboration.
Many borrowers use these programs as a bridge. Two clean years later, a conventional refinance is often available at better pricing.
Program parameters shown are typical of the market and vary by investor. Nothing here is a commitment to lend. All financing is subject to credit approval, property review and program availability.
No obligation — find the right fit for your situation.