Quick answer
A 1099 HELOC qualifies you on the income shown on your 1099 forms, typically less a standard expense factor, instead of the net profit on your tax return. Most programs want 1–2 years of 1099s from the same line of work. Our program allows debt-to-income up to 50%, can go up to 90% combined loan-to-value in certain cases, and considers credit scores down to 600 with compensating factors.
Requirements at a glance
| Requirement | Most lenders | Our program |
|---|---|---|
| Income documents | 2 years of tax returns (Schedule C net profit) | 1–2 years of 1099s plus proof of year-to-date income |
| How income is counted | Net profit after all write-offs | 1099 income less a standard expense factor, or bank deposits |
| Time in the field | 2 years | 2 years preferred; 1 year can work with strong cash flow |
| Debt-to-income | 43–45% or lower | Up to 50% |
| Combined loan-to-value | 80–85% | Up to 90% in certain cases |
| Credit score | 620–680+ | Down to 600 with compensating factors |
Typical industry ranges as of September 2026. Our program terms depend on credit, property, occupancy, and the full file; not a commitment to lend.
What is a 1099 HELOC?
A 1099 HELOC is a home equity line of credit built for people who are paid as independent contractors: real estate agents, loan officers, consultants, nurses and therapists on contract, truck drivers, and gig workers. Instead of reading the bottom line of your Schedule C, the lender starts from the gross amount on your 1099 forms and subtracts a standard expense factor. Your actual deductions, like mileage, home office, and equipment, don't reduce your qualifying income the way they do at a bank.
Everything else works like a normal HELOC: you get a revolving line, draw what you need, and pay interest only on what you use. If most of your income arrives as deposits rather than 1099s, the bank statement HELOC may fit better.
Example: why your 1099 beats your tax return
A real estate agent earns $180,000 in commissions, all reported on 1099s. After mileage, marketing, licensing, a vehicle, and a home office, her Schedule C shows $62,000 of net profit.
| Tax-return HELOC | 1099 HELOC (example) | |
|---|---|---|
| Starting income | $62,000 net profit | $180,000 on 1099s |
| Expense factor | Already deducted | 10% ($18,000) |
| Qualifying income | $62,000 ($5,167/mo) | $162,000 ($13,500/mo) |
| Max total debt payments at 50% DTI | $2,583/mo | $6,750/mo |
Illustrative only. Expense factors vary by program; some lenders use your actual expenses or deposits instead.
Who it fits
- Real estate agents and loan officers paid on commission
- Consultants, contractors, and freelancers paid on 1099s
- Healthcare workers on contract (travel nurses, therapists, locum physicians)
- Truck drivers and gig workers with steady 1099 income
- Anyone whose write-offs make their tax return look far smaller than their pay
How it works: 3 steps
- Get a rate estimate. Soft credit pull only. Tell us the property, what you owe, and how you earn; we tell you which path fits and what line size to expect.
- Send your documents. Usually your last 1–2 years of 1099s, a recent statement or pay record showing year-to-date income, ID, your mortgage statement, and homeowners insurance. We review them before anything is ordered, so you know where you stand early.
- Close and draw. Many files use an automated valuation instead of an in-person appraisal. Timing depends mostly on valuation, title, and how quickly documents come in.
Related programs: self-employed HELOC · bank statement HELOC · P&L HELOC · 1-year self-employed HELOC
Frequently asked questions
Can I get a HELOC with 1099 income?
Yes. A 1099 HELOC qualifies you on the income shown on your 1099 forms, usually less a standard expense factor, instead of the net profit on your tax return. That usually means a much higher qualifying income for contractors and agents with large write-offs.
How many years of 1099s do I need?
Most programs want 1-2 years of 1099s from the same line of work. Two years is standard; our program can work with 1 year of self-employment when cash flow is strong, especially if you worked in the same field before.
Do I need to provide tax returns for a 1099 HELOC?
On a 1099 program, your 1099 forms and proof of year-to-date income replace the full tax-return analysis. Some lenders still ask for an IRS transcript to confirm the 1099s. If your returns show strong income, a full-documentation HELOC may price better, so it's worth comparing both.
Are 1099 HELOC rates higher?
Usually a little. 1099 and other alternative-documentation HELOCs typically price about 0.5-1.5 percentage points above a comparable full-documentation HELOC, depending on credit and loan-to-value.
What if I have both W-2 and 1099 income?
That's common. The lender can combine W-2 pay with 1099 income. Each source is documented its own way, and the total is used for debt-to-income, which can go up to 50% on our program.
Which states is the 1099 HELOC available in?
Audi Garner (NMLS #190235, West Capital Lending NMLS #1566096) is licensed in 22 states: Alabama, Arizona, Arkansas, California, Colorado, DC, Florida, Hawaii, Idaho, Iowa, Kansas, Maine, Maryland, Minnesota, Missouri, North Dakota, Oregon, Pennsylvania, South Dakota, Tennessee, Virginia, and Washington.
Talk to a licensed HELOC lender
Get a rate estimate or ask a question — direct answer from Audi Garner, Branch Manager & Broker (NMLS #190235). No sales pitch. No hard credit pull.
Get a 60-second rate estimate
Soft pull only. Written quote emailed within 1 business day.
Ask Audi a HELOC question
Direct answer from a licensed originator. Usually within 1 business day.
Related HELOC resources
Bank Statement HELOC
Qualify on 12–24 months of deposits.
Self-Employed HELOC
Every documentation path for business owners.
Self-Employed HELOC Guide
How lenders read self-employed income.
