1099 Reduced Doc
1099 Reduced Doc
Best for: Contractors
| Best For | Contractors |
| Max Loan Amount | $5,000,000 |
| Min Loan Amount | $150,000 |
| Min FICO | 680 |
| Max LTV | 90% |
| Max DTI | 50% (42% FTHB) |
| Short-Term Rental | Y |
| Interest Only | Y |
| Fixed Rate | Y |
| Adjustable Rate | Y |
| Subordinate Financing | N |
| Occupancy | Primary 2nd Home Investment |
| Property Types (1 ADU permitted for SFR) | SFR / PUD 2–4 Unit Warrantable Condo Non-Warrantable Condo Condotel Co-Op Modular |
| Transaction Types | Purchase Rate-Term Refi Cash-Out Refi |
1099 Mortgage Loans for Independent Contractors
The gig economy, independent contracting, and commission-based work have fundamentally changed how millions of Americans earn their income — but traditional mortgage programs haven't kept up. AMS's 1099 Reduced Doc program bridges that gap, allowing borrowers to qualify using their 1099 income directly, without requiring full tax returns or complex income averaging.
With a fixed 10% expense ratio applied to gross 1099 earnings, income calculation is straightforward and predictable — a major advantage for both borrowers and brokers working to close efficiently.
How Income Is Calculated
AMS applies a fixed 10% expense deduction to gross 1099 income, resulting in a clean, consistent qualifying income figure. The 1099 must be issued in the borrower's individual name. YTD earnings are reviewed to confirm income is tracking in line with prior-year 1099 amounts.
Who This Program Is For
The 1099 Reduced Doc program is ideal for:
• Independent contractors across industries (technology, construction, healthcare, finance, etc.)
• Gig economy workers (rideshare drivers, delivery workers, platform-based service providers)
• Commission-based earners with 1099 income from a single employer or multiple clients
• Freelancers and consultants with consistent annual 1099 earnings
Key Program Highlights
No full tax return required — income is supported by 1099s alone. The flat 10% expense factor eliminates the ambiguity of self-employed income calculations. Up to 90% LTV is available. All occupancy types are eligible, including short-term rental properties. DTI up to 50%.
Additional guidelines and overlays may apply. Contact your AMS Account Executive for complete program details.